test accounting - Multiple choice 1 The accounting profession can be divided into three major categories specifically the practice of public accounting

test accounting - Multiple choice 1 The accounting...

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Multiple choice 1. The accounting profession can be divided into three major categories; specifically, the practice of public accounting, private accounting, and governmental accounting. A somewhat unique and important service of public accountants is: Auditing. 2. The primary private sector agency that oversees external financial reporting standards is the: a. Financial Accounting Standards Board. 3. Which of the following equations properly represents a derivation of the fundamental accounting equation? d. Assets - liabilities = owner's equity. 4. Wilson Company owns land that cost $100,000. If a "quick sale" of the land was necessary to generate cash, the company feels it would receive only $80,000. The company continues to report the asset on the balance sheet at $100,000. This is justified under which of the following concepts? a. The historical-cost principle. b. The value is tied to objective and verifiable past transactions. 4. Wilson Company owns land that cost $100,000. If a "quick sale" of the land was necessary to generate cash, the company feels it would receive only $80,000. The company continues to report the asset on the balance sheet at $100,000. This is justified under which of the following concepts? b. The value is tied to objective and verifiable past transactions. 6. Which of these items would be accounted for as an expense? d. Payment of the current period's rent. 7. Which of the following transactions would have no impact on stockholders' equity? a. Purchase of land from the proceeds of a bank loan. 7. Which of the following transactions would have no impact on stockholders' equity? a. Purchase of land from the proceeds of a bank loan. 8. Which of the following would not be included on a balance sheet?
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