AIS 301 701 Practice Exam 1 Fall 2011-1

AIS 301 701 Practice Exam 1 Fall 2011-1 -...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT IS 301 / 701 Intermediate Accounting Practice Exam 1 (This practice exam provides an example of the nature and types of questions on the  actual exam.  It is not intended to be representative of the length or difficulty of the actual  exam)  Note:  Solutions are at the end of the exam Multiple   Choice   -   Circle   the   best   answer   for   each  question.   1.  The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control  an organization’s operations is called a. financial accounting. b. managerial accounting. c. tax accounting. d. auditing. 2.    What   is   the   relationship   between   the   Securities   and   Exchange  Commission and accounting standard setting in the United States? a. The SEC requires all companies listed on an exchange to submit their  financial statements to the SEC. b. The   SEC   coordinates   with   the   AICPA   in   establishing   accounting  standards. c. The SEC has a mandate to establish accounting standards for enterprises  under its jurisdiction. d. The SEC reviews financial statements for compliance.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3.  The assumption that a business enterprise will not be sold or liquidated in the near future is known as the a. economic entity assumption. b. monetary unit assumption. c. conservatism assumption. d. none of these. 4.  Benedict Corporation reports the following information: Net income $500,000 Dividends on common stock 140,000 Dividends on preferred stock 60,000 Weighted average common shares outstanding 100,000 Benedict should report earnings per share of a. $3.00. b. $3.60 c. $4.40. d. $5.00. 5.  Moorman Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $   430,000 Dividends declared 320,000
Background image of page 2
Net income 1,000,000 Retained earnings, 1/1/10, as reported 2,000,000 Moorman should report retained earnings, 1/1/10, as adjusted at a. $1,570,000. b. $2,000,000. c. $2,430,000. d. $3,110,000. 6.   Which of these statements regarding the iGAAP and U.S. GAAP is  correct? a. U.S. GAAP is considered to be "principles-based" and more detailed  than iGAAP. b. U.S. GAAP is considered to be "rules-based" and less detailed than  iGAAP. c. iGAAP is considered to be "principles-based" and less detailed than  U.S. GAAP d. Both U.S. GAAP and iGAAP are considered to be "rules-based", but  U.S. GAAP tends to be more complex.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
7. Which of the following is NOT   an objective of financial reporting? a.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

AIS 301 701 Practice Exam 1 Fall 2011-1 -...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online