test1_ch01-2 - Achievement Test 1: Chapters 1 and 2...

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Achievement Test 1: Chapters 1 and 2 Name ___________________________ Financial Accounting, 5e Instructor ________________________ Section # _________ Date __________ Part I II III IV Total Points 54 26 10 10 100 Score PART I — MULTIPLE CHOICE (54 points) Instructions: Designate the best answer for each of the following questions. ____ 1. "GAAP" refers to a. General Accounting and Auditing Principles. b. Guidelines for American Accounting Procedures. c. General Association of Accounting Practitioners. d. None of the above. ____ 2. 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. ____ 3. The initials CPA stand for a. Certified Practical Auditor. b. Chartered Public Auditor. c. Certified Public Accountant. d. Can't Pass Accounting. ____ 4. Which of the following is not an external user of accounting data? a. Company officers b. Regulatory agency c. Labor union d. Taxing authority ____ 5. Which of the following is not generally understood to be a major service of a public accounting firm? a. Auditing b. Taxation c. Budgeting
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Test Bank for Financial Principles, Fifth Edition d. Management consulting ____ 6. Which of the following presents key aspects of the process of accounting in the correct chronological order? a. Totaling, auditing, and budgeting b. Budgeting, recording, and communicating c. Recording, totaling, and auditing d. Identifying, recording, and communicating ____ 7. The process of transferring transaction effects into the appropriate accounts is referred to as a. closing. b. journalizing. c. recording. d. posting. ____ 8. The following describes the process of identifying the economic events of an organization: a. Keeping a chronological diary of particular events in an orderly and systematic manner. b. Selecting the economic activities relevant to a particular organization. c. Preparing accounting reports, including financial statements. d. Quantifying events in dollars and cents. ____ 9. The current source of "GAAP" in the private sector is the a. Accounting Principles Board. b. Internal Revenue Service. c. Financial Accounting Standards Board. d. Securities Exchange Commission. ____10. Transactions are initially recorded in the a. general ledger. b. trial balance. c. general journal. d. balance sheet. ____11. The Retained Earnings Column had a beginning total of $40,000 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. ____12. 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.
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This note was uploaded on 05/08/2008 for the course ACC 220 taught by Professor J during the Winter '08 term at South Central College: Faribault Campus.

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test1_ch01-2 - Achievement Test 1: Chapters 1 and 2...

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