2301 exam1 2007 - ACCT 2301, Exam 1 Student Name: 1. Which...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 2301, Exam 1 Student Name: 1. Which of the items below is not a business organization form? a. entrepreneurship b. proprietorship c. partnership d. corporation 2. An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a a. proprietorship b. corporation c. partnership d. governmental unit 3. Financial reports are used by a. management b. creditors c. investors d. all of the above 4. Which of the following best describes accounting? a. records economic data but does not communicate the data to users according to any specific rules b. is an information system that provides reports to stakeholders c. is of no use by individuals outside of the business d. is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements 5. The two most common specialized fields of accounting in practice are a. forensic accounting and financial accounting b. managerial accounting and financial accounting c. managerial accounting and environmental accounting d. financial accounting and tax accounting systems 6. The initials GAAP stand for a. General Accounting Procedures b. Generally Accepted Plans c. Generally Accepted Accounting Principles d. Generally Accepted Accounting Practices 7. The business entity concept means that a. the owner is part of the business entity b. an entity is organized according to state or federal statutes c. an entity is organized according to the rules set by the FASB d. the entity is an individual economic unit for which data are recorded, analyzed, and 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
reported 8. Smith Company purchased $105,000 of computer equipment from Brown Company. Smith Company paid for the equipment using cash that had been obtained from the initial investment by Connie Smith. The transaction involving the computer equipment should be recorded on the accounting records of which of the following entities? a. Smith Company and Connie Smith's personal records b. Brown Company and Connie Smith's personal records c. Brown Company d. Smith Company and Brown Company 9. The objectivity principle requires that a. business transactions must be consistent with the objectives of the entity b. the Financial Accounting Standards Board must be fair and unbiased in its deliberations over new accounting standards c. accounting principles must meet the objectives of the Security and Exchange Commission d. amounts recorded in the financial statements must be based on independently verifiable evidence 10.The Reynolds Company estimated that the value of its land had increased from $10,000 to $16,000 and therefore wrote up the land account to $16,000. Which accounting concept(s) was (were) violated? a.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

2301 exam1 2007 - ACCT 2301, Exam 1 Student Name: 1. Which...

This preview shows document pages 1 - 3. Sign up to view the full document.

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