Accounting Exam # 1

Front 1

The intentional preparation of misleading financial statement, known as fraudulent financial reporting can result from all the following except

Back 1

recording a revenue that has been earned but not yet received

Front 2

which of the following is the most appropriate and modern definition of accounting?

Back 2

the measurement, processing, and communicaiton of financial information about an identifiable economic entity

Front 3

a company's ability to attract and hold investment capital ultimately depends on its

Back 3

profitabilty

Front 4

which of the following is not a satifactory statement of the account equation

Back 4

assets = liabilities - stockholders equity

Front 5

the best definition of assets is the

Back 5

resources belonging to a company having future benefit to the company

Front 6

which of the following items has no effect of stockholders equity

Back 6

land purchased

Front 7

a liability would not include an obligation to

Back 7

hire an employee

Front 8

the authoritative body currently responsible for establishing account practice is the

Back 8

Financial Accounting Standards Board

Front 9

Pourpose of an audit is to

Back 9

ascertain that the financial statements follow GAAP

Front 10

carring out professional responsibilities with competence and diligence is called

Back 10

due care

Front 11

When a business reports revenue before it has bee earned, it has biolated the measurement issure of

Back 11

recognition

Front 12

when a business reports an asset at an inflated dollare amount, it has violated the measurement issue of

Back 12

valuation

Front 13

when a business erroneously records expenses as assets, it has violated the measurement issue of

Back 13

classificaiton

Front 14

the cost principle relates most closely to the

Back 14

valuation issue

Front 15

which of the following business events is not a transaciton

Back 15

signing a contract

Front 16

which of the following accounts is increased with a debit

Back 16

dividends

Front 17

which of the following accounts is increased with a credit

Back 17

fees earned

Front 18

which pair of accounts follows the rules of debit and credit in the same manner

Back 18

prepaid rent and advertising expense

Front 19

when a company has performed a service but has not yet receive payment, what is the required journal entry to be recorded

Back 19

accounts receivable - debit
revenue from service - credit

Front 20

all of the following are examples of source documents except

Back 20

journals

Front 21

office supplies become expenses

Back 21

when they are consumed (used up)