acct 250 review for 252

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wsrdpc
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12094
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acct 250 review for 252
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2010-08-28 22:29:42
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accounting
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review questions from acct 250
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  1. The overriding criterion by which accounting information can be judged is that of
    A. usefulness for decision making
    B. timeliness
    C. comparability
    D. freedom from bias
    A. usefulness for decision making
    (this multiple choice question has been scrambled)
  2. How do we commonly refer to the group of external users for whom the accounting principles are designed to benefit?
    A. credit markets
    B. capital markets
    C. both a & b
    D. neither a or b
    C. both a & b
    (this multiple choice question has been scrambled)
  3. The most significant current source of generally accepted accounting principles is the
    A. FASB.
    B. APB
    C. AICPA
    D. SEC
    A. FASB
    (this multiple choice question has been scrambled)
  4. The four qualities that make accounting information useful for decision making are
    A. comparability, consistency, relevance and reliability
    B. comparability, consistency, materiality and timeliness
    C. relevance, reliability, materiality and timeliness
    D. reliability, verifiability, neutrality, and consistency
    A. comparability, consistency, relevance and reliability
    (this multiple choice question has been scrambled)
  5. When information about 2 different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of
    A. consistency
    B. neutrality
    C. reliability
    D. comparability
    D. comparability
    (this multiple choice question has been scrambled)
  6. Accounting information is considered to be relevant when it
    A. is capable of making a difference in a decision
    B. is verifiable and neutral
    C. can be depended on to represent the exonomic conditions & events that it is intended to represent
    D. is understandable by reasonably informed users of accounting information
    A. is capable of making a difference in a decision
    (this multiple choice question has been scrambled)
  7. The quality of information that gives assurance that it is reasonably free of error and bias and is faithful represetation is
    A. verifiability
    B. relevance
    C. reliability
    D. neutrality
    C. reliability
    (this multiple choice question has been scrambled)
  8. Financial information exhibits the characteristic of consistency when
    A. accounting procedures are adopted which give a consistenct rate of net income
    B. extraordinary gains and losses are not included on the income statement
    C. expenses are reported as charges against revenue in the period in which they are paid
    D. accounting entities give accountable events in the same accounting treatment from period to period
    D. accounting entities give accountable events the same accounting treatment from period to period
    (this multiple choice question has been scrambled)
  9. Which of the following statements about materiality is the best definition of materiality for accounts?
    A. all items over $1 million are material
    B. an item is material only if it is large
    C. an item is material if it makes a difference in a decision
    d. none of the above
    C. an item is material if it makes a difference in a decision
    (this multiple choice question has been scrambled)
  10. The four basic principles of accounting are
    a. economic entity, going concern, monetary unit, periodicty
    b cost benefit, materiality, industry practice, conservatism
    c. historical cost, revenue recognition, matching, full disclosure
    d. comparability, consistency, relevance and reliability
    c. historical cost, revenue recognition, matching, full disclosure
  11. The primary & secondary qualitites of accounting are
    a. economic entity, going concern, monetary unit, periodicty
    b cost benefit, materiality, industry practice, conservatism
    c. historical cost, revenue recognition, matching, full disclosure
    d. comparability, consistency, relevance and reliability
    d. comparability, consistency, relevance and reliability
  12. The four constraints of accounting are
    a. economic entity, going concern, monetary unit, periodicty
    b cost benefit, materiality, industry practice, conservatism
    c. historical cost, revenue recognition, matching, full disclosure
    d. comparability, consistency, relevance and reliability
    b cost benefit, materiality, industry practice, conservatism
  13. The four basic assumptions of accounting are
    a. economic entity, going concern, monetary unit, periodicty
    b cost benefit, materiality, industry practice, conservatism
    c. historical cost, revenue recognition, matching, full disclosure
    d. comparability, consistency, relevance and reliability
    a. economic entity, going concern, monetary unit, periodicty
  14. The cost principle requires that when assets are acquired, they be recorded at
    a appraisal value
    b. historical cost
    c. listed selling price
    d. market value
    b. historical cost
  15. The revenue recognition principle dictates that revenue should be recognized in the accounting records
    A. at the end of the month
    B. when cash is received
    C. when it is earned
    D. in the period that income taxes are paid
    C. when it is earned
    (this multiple choice question has been scrambled)
  16. Which of the following is the correct sequence of steps in the recording process?
    A. posting, journalizing, analyzing
    B. journalizing, analyzing, posting
    C. analyzing, journalizing, posting
    D. analyzing, posting, journalizing
    C. analyzing, journalizing, posting
    (this multiple choice question has been scrambled)
  17. What are the elements in a Balance sheet?
    a. assets, liabilities, and equity

    b. assets, liabilities, capital stock, additional paid-in capital, and retained earnings

    c. current assets, non-current assets, current liabilities, non-current liabilities, and stockholders' equity

    d. side by side and top bottom
    a. assets, liabilities, and equity
  18. The date on a Balance sheet referes to?
    A. a specific point in time
    B. a period of time
    C. the date it was prepared
    d. none of the above
    A. a specific point in time
    (this multiple choice question has been scrambled)
  19. The basis for separating assets as current or non-current is conversion to cash within?
    A. the accounting cycle or one year, whichever is longer
    B. the operating cycle or one year, whichever is shorter
    C. the accounting cycle or one year, whichever is shorter
    D. the operating cycle or one year, whichever is longer
    D. the operating cycle or one year, whichever is longer
    (this multiple choice question has been scrambled)
  20. Current assets are ordinarily arranged in what sequence?
    A. legality sequence
    B. dollar sequence
    C. alphabetical sequence
    D. liquidity sequence
    D. liquidity sequence
    (this multiple choice question has been scrambled)
  21. The date on an income statement refers to?
    A. a period of time
    B. a specific point in time
    C. the date it was prepared
    d. none of the above
    A. a period of time
    (this multiple choice question has been scrambled)
  22. Which of the following is an acceptable format of presenting the income statement?
    A. neither a or b
    B. a multiple step income statement
    C. both a and b
    D. a single step income statement
    C. both a and b
    (this multiple choice question has been scrambled)
  23. What is the main financial statement issue in regards to cash?
    A. classification
    B. disclosure
    C. valuation
    D. historical cost
    A. classification
    (this multiple choice question has been scrambled)
  24. What is the main financial statement issue in regards to receivables?
    A. valuation
    B. classification
    C. historical cost
    D. disclosure
    A. valuation
    (this multiple choice question has been scrambled)
  25. How are receivables to be valued?
    A. net realizable value
    B. present value of future cash flows
    C. lower of cost or market
    D. historical cost
    A. net realizable value
    (this multiple choice question has been scrambled)
  26. How are inventories to be valued?
    A. lower of cost or market
    B. present value of future cash flows
    C. historical cost
    D. net relabilable value
    A. lower of cost or market
    (this multiple choice question has been scrambled)
  27. What is meant by market value in relation to valuing inventories?
    A. the amount at which the inventory can be sold
    B. the amount that the inventory is worth
    C. replacement cost with a ceiling and a floor
    D. it is the same as lquidation value
    C. replacement cost with a ceiling and a floor
    (this multiple choice question has been scrambled)
  28. What is the ceiling to market value in valuing inventories?
    A. the lowest of all the current costs
    B. sales price minus disposal cost
    C. the highest of all the current costs
    D. sales price minus disposal cost minus normal profit
    B. sales price minus disposal cost
    (this multiple choice question has been scrambled)
  29. What is the floor to market value in valuing inventories?
    A. sales price minus disposal cost minus normal profit
    B. the highest of all the current costs
    C. the lowest of all the current costs
    D. sales price minus disposal cost
    A. sales price minus disposal cost minus normal profit
    (this multiple choice question has been scrambled)

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