.

The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the a. cost principle. b. monetary unit assumption. c. economic entity assumption. d. both a and b above. 2. A financial statement that reports accounting data at a specific date is the a. income statement. b. retained earnings statement. c. balance sheet. d. statement of cash flows. 3. Which of the following presents key aspects of the process of accounting in the correct chronological order? a. Communicating, recording, and identifying b. Recording, identifying, and communicating c. Recording, totaling, and identifying d. Identifying, recording, and communicating 4. The process of transferring transaction effects into the appropriate accounts is referred to as a. closing. b. journalizing. c. recording. d. posting. 5. Transactions are initially recorded in the a. general ledger. b. trial balance. c. general journal. d. balance sheet. 6. For which of the following accounts is the normal balance a debit? a. Rent Payable b. Unearned Rent Revenue c. Rent Revenue d. Prepaid Rent 7. Which of the following is false with regard to a general journal? a. It tracks the increases and decreases in an individual account. b. It provides a chronological record of transactions. c. It discloses in one place the complete effect of a transaction. d. It helps to prevent errors since the debit and credit amounts in an individual entry can be readily compared. 8. Financial statements combining the operations of Sears and J. C. Penney would violate the a. monetary unit assumption. b. economic entity assumption. c. cost principle. d. both a and c above. 9. A debit will reduce _______________, but increase ______________. a. accounts receivable; accounts payable

b. revenues; accounts payable c. accounts payable; common stock d. common stock; prepaid insurance 10. Which of the following entries made to record the payment of $200 on account will cause the trial balance to be out of balance? a. No entry is recorded. b. Cash is debited for $200 and Service Revenue is credited for $200. c. Cash is debited for $20 and Accounts Payable is credited for $20. d. Both Cash and Accounts Payable are credited for $200. 11. Although a separate legal entity, the transactions of the following still must be kept separate from the personal activities of the owners for accounting purposes: a. Proprietorship. b. Partnership. c. Corporation. d. Both a and b above. 12. The Retained Earnings column had a beginning total of $30,000 and an ending total of $50,000. If $10,000 of dividends were paid during the period, net income must have been a. $20,000. b. $40,000. c. $10,000. d. $30,000. 13. The matching principle states that a. revenues should be matched with assets when they are recorded. b. revenues should be matched with the periods when cash is collected from customers. c. recorded values of assets should match their purchase prices. d. none of the above.
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10

Which one of the following qualitative characteristics of financial information can be described as a 'Threshold' quality? a) Reliability b) Relevance c) Materiality d) Understandability
#Reliability#Relev

The 'going concern' concept assumes that:

a) the business can continue in operational existence for the foreseeable future. b) the business cannot continue in operational existence for the foreseeable future. c) the business is continuing to be profitable. d) the business is causing concern to investors.
#the business ca

The format of published financial summaries within the European Union is decided by: a) the company itself. b) the company's auditors. c) stock exchange regulations. d) European Union regulations.
#the company its #Corporation Hou

To save printing and distribution costs, companies are allowed to send financial information to shareholders: a) only once every two years. b) in an electronic version. c) only if they ask for it. d) only if the company is profitable.
#only once every

Which one of the following is not a valid reason for the disparity of international accounting procedures? a) The problems of translation from one language to another b) The nature of the country's legal system

c) The relationship between taxation requirements and financial reporting requirements d) The relative strength of the accounting profession
#The problems of

Which one of the following factors has led to the development of strong, independent professional accountancy associations within specific countries? a) Predominantly small, family-run businesses b) Wide share ownership c) Banks owning majority of shares of large companies d) Communist governments
#Predominantly s

Committee Foundation.
#the Financial Ha

Question 09
When developing international accounting standards, it is usual for an 'Exposure Draft' to be published. Which one of the following best describes an Exposure Draft? a) A preliminary version of the proposals, made available for public debate and feedback b) The agreed version of an international accounting standard issued immediately prior to final publication c) The summary of feedback received following the publication of a new international accounting standard d) A call to the general public to generate fresh ideas for new accounting standards
#A preliminary ve

Question 10
The status of International Accounting Standards (IASs) was given a significant boost in 2001 when which one of the following events occurred? a) The President of the United States endorsed IASs for American companies

b) IASs received World Heritage Status from the United Nations c) The European Commission proposed that from 2005 listed companies throughout the EU should be obliged to follow IASs rather than national standards d) IASs were made compulsory throughout Asia and Australasia
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