CH2 - The Accounting Information System: Multiple-Choice Exercises
2-1 Which of the following is not a benefit derived from the conceptual framework?
a. Supports the objective of providing information useful for making business and economic decisions.
CH1 - Accounting and the Financial Statements: Multiple-Choice Exercises
1-1 Which of the following statements is false concerning forms of business organization?
a. A corporation has tax advantages over the other forms of business organization.
b. It is
CH5 - Sales and Receivables: Multiple-Choice Exercises
5-1 Which of the following is not one of the criteria for revenue recognition?
a. Persuasive evidence of an arrangement exists.
b. Collectability is certain.
c. Delivery has occurred or services have
CH10 - Stockholder's Equity: Multiple-Choice Exercises
10-1 Which of the following is not a component of stockholders' equity?
a. loss on sale of equipment
b. dividends payable
c. retained earnings
d. net income
10-2 Which of the following statements is t
CH3 - Accrual Accounting: Multiple-Choice Exercises
3-1 Which of the following statements is true?
a. Under cash-basis accounting, revenues are recorded when earned and expenses are recorded when
b. Accrual-basis accounting records both cash and
CH9 - Long-Term Liabilities: Multiple-Choice Exercises
9-1 Which of the following statements regarding bonds payable is true?
a. When an issuing company's bonds are traded in the secondary market, the company will receive part of the proceeds
when the bon
CH7 - Operating Assets: Multiple-Choice Exercises
7-1 Anniston Company purchased equipment and incurred the following costs:
Purchase price $52,000
Cost of trial runs
What is the cost of the equipment?
CH8 - Current and Contingent Liabilities: Multiple-Choice Exercises
8-1 Liabilities are recognized:
a. in exchange for goods.
b. in exchange for services.
c. in exchange for borrowing money.
d. all of these.
8-2 When reporting liabilities on a balance she
CH6 - Cost of Goods Sold and Inventory: Multiple-Choice Exercises
6-1 If beginning inventory is $40,000, purchases is $215,000, and ending inventory is $35,000, what is
cost of goods sold as determined by the cost of goods sold model?
CH11 -The Statement of Cash Flows: Multiple-Choice Exercises
11-1 Which of the following is not a use of the statement of cash flows?
a. Aids in the prediction of future cash flow
b. Provides a measure of the future obligations of the company
c. Helps est