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ACC1045 - Chapter 1 - lesson 1 Flashcards | StudBud
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ACC1045 - Chapter 1 - lesson 1
ACC1045 - Chapter 1 - lesson 1
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1
BE 1.1 - Who decides whether the company's profit will permit an increase in drawings (withdrawals)
chief financial officer
owner
labour union
creditors
2
BE 1.1 - Who decides whether a company pays fair salaries
owner
labour union
creditor
chief financial officer
3
P1.2A - Joe and Sabra
corporation
partnership
proprietorship
either of these options
4
Generally accepted accounting principles include
standards for reporting economic events
concepts and procedures
all of these
broad principles and practices
5
Combining the economic record keeping of three separate businesses would violate which GAAP principle
reporting entity concept
monetary unit concept
historical cost principle
going concern assumption
6
BE 1.1 - Who decides whether a marketing proposal will be cost-effective
marketing manager
chief financial officer
owner
creditor
7
BE 1.1 - Is the creditors of the company an internal or external user?
external
internal
8
P1.2A - Tom
corporation
either of these options
proprietorship
partnership
9
The three types of business organization forms are:
proprietorships, partnerships, and large businesses
proprietorships, partnerships, and corporations
financial, manufacturing, and service companies
proprietorships, small businesses, and partnerships
10
P1.2A - Abdur
partnership
proprietorship
corporation
either of these options
11
Which of the following groups uses accounting information to ensure the entity is operating within prescribed rules?
management
regulatory agencies
labour unions
creditors
12
The proprietorship form of business organization
is classified as a separate legal entity
is difficult to set up
is often chosen for small owner-operated businesses
must have at least two owners in most provinces
13
E1.3 - Pays income taxes on its profits.
corporation
sole proprietorship
partnership
none of the above
14
Which of the following statements about users of accounting information is incorrect?
Regulatory authorities are internal users
Taxing authorities are external users
Management is an internal user
Present creditors are external users
15
The main objective of financial reporting is
provide useful information to investors and creditors to make decisions
provide useful information for generating revenue for external users
provide useful information to management to ensure continued success
provide useful information for internal
16
Accounting is an information system that identifies, records, and communicates economic events of an org. to users
True
False
17
According to the revenue recognition principle, revenue should be recognized once it meets its performance obligation
False
True
18
According to the cost principle, assets should be reported at their replacement cost, not their original cost.
True
False
19
E1.3 - Has a limited life.
partnership
none of the above
corporation
sole proprietorship
20
Which of the following best describes when an event should be recognized in the accounting records?
if uncertain if a future event will occur, it should not be recognized
interaction between the company and another external entity
use tradition determined by accountants and historic recordings
change that can be measured monetarily in assets, liabilities or equity
21
Generally accepted accounting principles
are changed by the AcSB without input from the organizations
change over time to ensure useful information is provided
never change so as to ensure consistency for external decision making
have not changed in over 20 years and are unlikely to change soon
22
Which accounting assumption assumes that a company will continue operations to carry out its existing objectives
monetary unit concept
historical cost principle
reporting entity concept
going concern assumption
23
E1.4 - Users find the information in the financial statements helps them to make decisions.
neutrality
faithful representation
comparability
relevance
24
E1.3 - Owners have limited liability
corporation
sole proprietorship
partnership
none of the above
25
E1.4 - Accounting information shows the profit of a business without consideration of what the owner may want to report.
understandability
comparability
verifiability
neutrality
26
E1.3 - Records of the business are combined with the personal records of the owner or owners.
sole proprietorship
partnership
corporation
none of the above
27
E1.3 - Owners are called “shareholders.”
corporation
none of the above
partnership
sole proprietorship
28
P1.2A - Profs
corporation
proprietorship
either of these options
partnership
29
External users of accounting information include all of the following
except
chief financial officer
regulatory authorities
tax authorities
creditors
30
A business organized with two or more owners and unlimited liability is a
proprietorship
all of these can be organized as a seperate legal entity
partnership
corporation
31
E1.4 - Financial statements make sense to business people.
faithful representation
understandability
relevance
verifiability
32
BE 1.1 - Is the chief financial officer of the company an internal or external user?
internal
external
33
BE 1.1 - Is the owner of the company an internal or external user?
internal
external
34
BE 1.1 - Who decides whether a company can pay its obligations
creditor
chief financial officer
marketing manager
owner
35
E1.4 - An economic event is reported so it represents what actually happened.
understandability
verifiability
relevance
faithful representation
36
BE 1.1 - Who decides how the company should finance its operations
owner
creditor
chief financial officer
marketing manager
37
BE 1.1 - Is the labour union of the company an internal or external user?
internal
external
38
E1.4 - Henry is able to confirm the information presented in the financial statements.
verifiability
understandability
neutrality
relevance
39
BE 1.1 - Is the marketing manager of the company an internal or external user?
external
internal
40
E1.4 - Très Chic Boutique uses the same accounting methods as other similar boutiques.
faithful representation
verifiability
comparability
relevance
41
E1.3 - Has a separate legal existence from its owners.
sole proprietorship
corporation
partnership
none of the above
