Accounting Principles, Accounting

Accounting Principles

Question: Generally accepted accounting principles are:
A
a set of standards and rules that are recognized as a general guide for financial reporting.

B
usually established by the Internal Revenue Service.

C
the guidelines used to resolves ethical dilemmas.

D
fundamental truths that can be derived from the laws of natural.

Note: Not available
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Question: Which of the following is not an objective of financial reporting?
A
Provide information that is useful in investment and credit decisions.

B
Provide information about economic resources, claims to those resources and changes in them.

C
Provide information that is useful in assessing future cash flows.

D
Provide information on the liquidation value of a business.

Note: Not available
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Question: The primary criterion by which accounting information can be judged is:
A
consistency.

B
predictive value.

C
decision-usefulness.

D
comparability.

Note: Not available
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Question: Verifiability is an ingredient of: Reliability Relevance
A
Yes No

B
No Yes

C
Yes No

D
No Yes

Note: Not available
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Question: Valuing assets at their liquidation value rather than their cost is inconsistent with the:
A
time period assumption.

B
matching concern assumption.

C
going concern assumption.

D
materiality constraint.

Note: Not available
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Question: Gonzalez's Construction Company began a long-term construction contract on January 1,2002. The contract is expected to be completed in 2003 at a total cost of $20,000,000. Gonzalez's revenue for the project is $24,000,000. Gonzalez incurred contract costs of $4,000,000 in 2002. What gross profit should be recognized in 2002?
A
$800,000

B
$1,000,000

C
$2,000,000

D
$4,000,000

Note: Not available
1. Report
Question: Dunlop Company had installment sales of $1,000,000 in its first year of operations. The cost of goods sold on installment was $650,000. Dunlop collected a total of $500,000 on the installment sales. Using the installment method, how much gross profit should be recognized in the first year?
A
$140,000.

B
$175,000.

C
$350,000.

D
$500,000.

Note: Not available
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Question: The full disclosure principle dictates that:
A
financial statements should disclose all assets at their cost.

B
financial statements should disclose only those events that can be measured in dollars.

C
financial statements should disclose all events and circumstances that would matter to users of financial statements.

D
financial statements should not be relied on unless an auditor has expressed an unqualified opinion on them.

Note: Not available
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Question: The accounting constraint that means that when in doubt that accountant should choose the method that will be least likely to overstate assets and income is called:
A
the matching principle.

B
materiality

C
conservatism

D
the monetary unit assumption.

Note: Not available
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Question: The organization that issues international accounting standards is the:
A
Financial Accounting Standard Board.

B
International Accounting Standards Committee.

C
International Auditing Standards.

D
None of the above

Note: Not available
1. Report

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Question: Generally accepted accounting principles are:

Question: Which of the following is not an objective of financial reporting?

Question: The primary criterion by which accounting information can be judged is:

Question: Verifiability is an ingredient of: Reliability Relevance

Question: Valuing assets at their liquidation value rather than their cost is inconsistent with the:

Question: Dunlop Company had installment sales of $1,000,000 in its first year of operations. The cost of goods sold on installment was $650,000. Dunlop collected a total of $500,000 on the installment sales. Using the installment method, how much gross profit should be recognized in the first year?

Question: The full disclosure principle dictates that:

Question: The accounting constraint that means that when in doubt that accountant should choose the method that will be least likely to overstate assets and income is called:

Question: The organization that issues international accounting standards is the: