What is a benefit of technology in modern business practice? a) It makes up for a lack of understanding of accounting b) it increases the time, effort, and cost of recording transactions c)Although it has not changed the way accountants summarize data, it has changed the way they process and store ...
ACG 2021 Test 1 Questions and Correct
Answers
What is a benefit of technology in modern business practice?
a) It makes up for a lack of understanding of accounting
b) it increases the time, effort, and cost of recording transactions
c)Although it has not changed the way accountants summarize data, it has changed the
way they process and store data.
d) all the above
e) none of the above ✅c) Although it has not changed the way accountants summarize
data, it has changed the way they process and store data.
Which of the following users of accounting information are internal users?
a) lenders
b) shareholders
c) production managers
d) governments
e) customers ✅c) production managers
Certified Public Accountants:
a) must meet education and experience requirements and pass an examination
b) are required to exhibit ethical character
c) receive a certificate that denotes their professional standing
d) A and C
e)all the above ✅e) all of the above
Which of the following is true about ethics in accounting?
a) for information to be useful, it must be trusted
b) ethics are beliefs that distinguish right from wrong
c) ethics are accepted standards of good and bad behavior
d) identifying the proper ethical path is sometimes difficult
e) all of the above ✅e) all of the above
Which form of ownership provides all owners with the least amount of risk to their
personal assets?
a) sole proprietorship
b) limited partnership
c) limited liability partnership
d) corporation
e) none of the above ✅corporation
which of the following does not correctly match the accounting principle with its major
focus or assumption?
, a) Going-concern assumption: A business has an indefinite life span
b) business entity assumption: A business is distinct from its owners
c) Measurement principle: accounting information is based on actual cost
d) revenue recognition principle: revenue is recognized (that is, recorded) when cash is
received from customers for goods or services provided.
e) Monetary unit assumption:transactions and events can be expressed in monetary, or
money, units. ✅c) Measurement principle: accounting information is based on actual
cost
the measurement principle means that accounting information is based on actual cost
because cost is considered to be:
a) objective
b) subjective
c) biased
d) b and c
e) All of the above ✅a) objective
which of the following represent creditors' claim the assets of a company?
a) accounts receivable
b) owner's equity
c) retained earnings
d) liabilities
e) none of the above ✅d) liabilities
If assets increased by $5,000 and equity increased by $1,000 during the accounting
period, then how did liabilities change?
a) increased by $6,000
b) increased by $4,000
c) decreased by $4,000
d) decreased by $6,000
e) decreased by $1,000 ✅b) increased by $4,000
The owner of a company services business was able to acquire a new computer, valued
at $5,000, by establishing an account with the computer vendor, com pewters unlimited.
There was no down payment. How does this transaction impact the accounting
equation?
a) increase an asset, increase a liability
b) decrease an asset, decrease a liability
c) increase an asset, increase equity
d) decrease an asset, decrease equity
e) increase one asset and decrease another asset ✅a) increase an asset, increase a
liability
Keith Manich deposited $5,000 in a bank account he established for a pet store that he
is going to own and operate as KM's Pets, Incorporated. How does this transaction
impact the accounting equation?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller twishfrancis. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
