3101 Quiz-01 for student 2010

3101 Quiz-01 for student 2010 - Acctg3101/Lin Quiz Chap.01...

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Acctg3101/Lin Quiz Chap.01 Name: 1. An effective capital allocation process a. promotes productivity. b. encourages innovation. c. provides an efficient market for buying & selling securities. d. all of these 2. Accrual accounting is used because a . cash flows information is considered to be less useful. b. it provides a better indication of ability to generate cash flows than the cash basis. c. it recognizes revenues when cash is received and expenses when cash is paid. d. the Internal Revenue Services (IRS) requires its use by all businesses. 3. One objective of financial reporting is to provide a. information about the investors in the business entity. b. information about the liquidation values of the resources held by the enterprise. c. information that is useful in assessing cash flow prospects. d. information that will attract new investors. 4. Accounting principles are "generally accepted" only when a. an authoritative accounting rule-making body has established it in an official pronouncement. b.
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This note was uploaded on 04/29/2011 for the course ACCT 3010 taught by Professor John during the Spring '11 term at University of Minnesota Duluth.

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