ACG 2021 Chapter 1; Questions & Answers
100% Pass
The partnership form of business organization CORRECT ANSWER-is not a separate legal
entity and its owners are liable for its debts.
Stockholders of a corporation are considered to be CORRECT ANSWER-external users of
a company's accounting in...
ACG 2021 Chapter 1; Questions & Answers
100% Pass
The partnership form of business organization CORRECT ANSWER-is not a separate legal
entity and its owners are liable for its debts.
Stockholders of a corporation are considered to be CORRECT ANSWER-external users of
a company's accounting information.
Which of the following best defines accounting? CORRECT ANSWER-The information
system that identifies, measures, and communicates economic information to permit informed
judgements and decisions by the users of the information.
Which of the following did not result from the Sarbanes-Oxley Act (SOX)? CORRECT
ANSWER-It decreased the oversight role of boards of directors.
The common characteristic possessed by all assets is that they CORRECT ANSWER-are
resources owned.
The cost of assets consumed or services used is also known as CORRECT ANSWER-an
expense.
Which of the following is an example of an investing activity? CORRECT ANSWER-Buying
a delivery truck in exchange for cash
, ACG 2021 Chapter 1; Questions & Answers
100% Pass
Which of the following is also referred to as debt? CORRECT ANSWER-Liabilities
Which of the following would not appear on an income statement? CORRECT ANSWER-
Dividends
An income statement shows CORRECT ANSWER-revenues, expenses, and net income.
Retained earnings is CORRECT ANSWER-an equity account
Which financial statement reports assets, liabilities, and stockholders' equity as of a given date?
CORRECT ANSWER-Balance sheet.
Which of the following best describes stockholders' equity? CORRECT ANSWER-
Stockholders' equity are the claims of owners.
Which of the following is true with regard to the auditor's report that is included in the annual
report given to shareholders? CORRECT ANSWER-The auditor's report states the
auditor's opinion as to the fairness of the financial position and results of operations and their
conformance with accounting rules.
When the auditor is satisfied that the financial statements provide a fair representation of the
company's financial position and results of operation in accordance with generally accepted
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