acct 250 review for 252

  1. The overriding criterion by which accounting information can be judged is that of



    B. usefulness for decision making
  2. How do we commonly refer to the group of external users for whom the accounting principles are designed to benefit?



    B. both a & b
  3. The most significant current source of generally accepted accounting principles is the



    C. FASB
  4. The four qualities that make accounting information useful for decision making are



    A. comparability, consistency, relevance and reliability
  5. When information about 2 different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of



    A. comparability
  6. Accounting information is considered to be relevant when it



    B. is capable of making a difference in a decision
  7. The quality of information that gives assurance that it is reasonably free of error and bias and is faithful represetation is



    C. reliability
  8. Financial information exhibits the characteristic of consistency when



    C. accounting entities give accountable events the same accounting treatment from period to period
  9. Which of the following statements about materiality is the best definition of materiality for accounts?



    C. an item is material if it makes a difference in a decision
  10. The four basic principles of accounting are
    a. economic entity, going concern, monetary unit, periodicty
    b cost benefit, materiality, industry practice, conservatism
    c. historical cost, revenue recognition, matching, full disclosure
    d. comparability, consistency, relevance and reliability
    c. historical cost, revenue recognition, matching, full disclosure
  11. The primary & secondary qualitites of accounting are
    a. economic entity, going concern, monetary unit, periodicty
    b cost benefit, materiality, industry practice, conservatism
    c. historical cost, revenue recognition, matching, full disclosure
    d. comparability, consistency, relevance and reliability
    d. comparability, consistency, relevance and reliability
  12. The four constraints of accounting are
    a. economic entity, going concern, monetary unit, periodicty
    b cost benefit, materiality, industry practice, conservatism
    c. historical cost, revenue recognition, matching, full disclosure
    d. comparability, consistency, relevance and reliability
    b cost benefit, materiality, industry practice, conservatism
  13. The four basic assumptions of accounting are
    a. economic entity, going concern, monetary unit, periodicty
    b cost benefit, materiality, industry practice, conservatism
    c. historical cost, revenue recognition, matching, full disclosure
    d. comparability, consistency, relevance and reliability
    a. economic entity, going concern, monetary unit, periodicty
  14. The cost principle requires that when assets are acquired, they be recorded at
    a appraisal value
    b. historical cost
    c. listed selling price
    d. market value
    b. historical cost
  15. The revenue recognition principle dictates that revenue should be recognized in the accounting records



    C. when it is earned
  16. Which of the following is the correct sequence of steps in the recording process?



    C. analyzing, journalizing, posting
  17. What are the elements in a Balance sheet?
    a. assets, liabilities, and equity

    b. assets, liabilities, capital stock, additional paid-in capital, and retained earnings

    c. current assets, non-current assets, current liabilities, non-current liabilities, and stockholders' equity

    d. side by side and top bottom
    a. assets, liabilities, and equity
  18. The date on a Balance sheet referes to?



    B. a specific point in time
  19. The basis for separating assets as current or non-current is conversion to cash within?



    D. the operating cycle or one year, whichever is longer
  20. Current assets are ordinarily arranged in what sequence?



    C. liquidity sequence
  21. The date on an income statement refers to?



    C. a period of time
  22. Which of the following is an acceptable format of presenting the income statement?



    C. both a and b
  23. What is the main financial statement issue in regards to cash?



    D. classification
  24. What is the main financial statement issue in regards to receivables?



    A. valuation
  25. How are receivables to be valued?



    D. net realizable value
  26. How are inventories to be valued?



    A. lower of cost or market
  27. What is meant by market value in relation to valuing inventories?



    D. replacement cost with a ceiling and a floor
  28. What is the ceiling to market value in valuing inventories?



    C. sales price minus disposal cost
  29. What is the floor to market value in valuing inventories?



    D. sales price minus disposal cost minus normal profit
Author
wsrdpc
ID
12094
Card Set
acct 250 review for 252
Description
review questions from acct 250
Updated