B) Financial Accounting Standards Board - Answer Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?
A) U.S. Congress
B) Financial Accounting Standards Board
C) International Accou...
Exam 1 Fundamentals of Accounting
Study Questions Solved Correctly.
B) Financial Accounting Standards Board - Answer Which of the following groups has the primary
responsibility for establishing generally accepted accounting principles for business entities in the United
States?
A) U.S. Congress
B) Financial Accounting Standards Board
C) International Accounting Standards Board
D) Securities and Exchange Commission
D) Creditors - Answer Which resource providers lend financial resources to a business with the
expectation of repayment of interest?
A) Consumers
B) Owners
C) Investors
D) Creditors
A) Financial Accounting - Answer Which type of accounting information is intended to satisfy the needs
of external users of accounting information?
A) Financial Accounting
B) Managerial Accounting
C) Tax Accounting
D) Cost Accounting
,B) Generally Accepted Accounting Principles - Answer Financial accounting standards are known
collectively as GAAP. What does that acronym stand for?
A) Generally Authorized Auditing Principles
B) Generally Accepted Accounting Principles
C) Governmentally Approved Accounting Practices
D) Generally Applied Accounting Procedures
C) International Accounting Standards Board - Answer International accounting standards are
formulated by the IASB. What does that acronym stand for?
A)International Accounting and Sustainability Board
B) International Accounting Standards Bureau
C) International Accounting Standards Board
D) Internationally Accepted Standards Board
A) Cash received from customers at the time services were provided - Answer Which of the following
items is an example of revenue?
A) Cash received from customers at the time services were provided
B) Cash received from the sale of land for its original selling price
C) Cash received from a bank loan
D) Cash received from investors from the sale of common stock
A) $13,000
Assets=Liability+Equity
, $22,000-$15,000=$13,000 - Answer The balance sheet of the Alonquin Company reported assets of
$50,000, liabilities of $22,000 and common stock of $15,000. Based on this information only, the amount
or balance for retained earnings must be:
A) $13,000
B) $57,000
C) $87,000
D) $7,000
C) $300
$500-$200= $300 - Answer If Ballard Company reported assets of $500 and liabilities of $200, Ballard's
stockholders' equity equals:
A) $500
B) $700
C) $300
D) Cannot be determined
A) total assets were unaffected - Answer Li Company paid cash to purchase land. As a result of this
accounting event:
A) total assets were unaffected
B) total assets decreased
C) both assets and total equity decreased
D) total equity decreased
B) Cash and Revenue
money coming IN - Answer The transaction, "provided services for cash," affects which two accounts?
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