ACCT 3110 Entrance Exam 2023-2024 Questions and
Answers Complete
Financial statements can be used by which of the following groups?
A.
Individuals
B.
Investors and creditors
C.
Regulatory bodies
D.
All of the above.
D.
All of the above.
Nicholas is a software engineer and is starting a consulting practice. What form of
business organization limits his liability to the amount he has invested in the business?
A.
Corporation
B.
Proprietorship
C.
Partnership
D.
None of the above.
A.
Corporation
An organization's investors and creditors will primarily use information provided by:
A.
the Internal Revenue Service.
B.
the organization's financial accounting system.
C.
the organization's managerial accounting system.
D.
the Financial Accounting Standards Board.
B.
the organization's financial accounting system.
The primary objective of financial reporting is to provide information
A.
useful for making investment and credit decisions.
B.
on the cash flows of the company.
C.
to the federal government.
,D.
about the profitability of the enterprise.
A.
useful for making investment and credit decisions.
Which type of business organization provides the least amount of protection for bankers
and other creditors of the company?
A.
Proprietorship
B.
Corporation
C.
Partnership
D.
Both a and c
B.
Corporation
Frost Enterprise buys a warehouse for $ 510,000 to use for its East Coast distribution
operations. On the date of the purchase, a professional appraisal shows a value of $
600,000 for the warehouse. The seller had originally purchased the building for $
485,000. Frost has a similar warehouse on the West Coast that has a book value of $
524,000. Under the historical cost principle, Frost should record the building for
a- 524000
b-600000
c-485000
d-510000
d-510000
To be useful, information must have which of the following fundamental qualitative
characteristics?
A.
Relevance and faithful representation
B.
Expediency and relevance
C.
Timeliness and affordability
D.
Faithful representation and diversity
A.
Relevance and faithful representation
Which of the following is a true statement about International Financial Reporting
Standards?
A.
They are converging gradually with U.S. standards.
B.
They are not being applied anywhere in the world yet, but soon they will be.
C.
, They are more exact (contain more rules) than U.S. generally accepted accounting
principles.
D.
They are considered to be the single strongest set of accounting standards in the world.
A.
They are converging gradually with U.S. standards.
Assets are usually reported at their
A.
appraised value.
B.
historical cost.
C.
current market value.
D.
none of the above.
B.
historical cost.
Assume that a business is headed for certain bankruptcy and it is evident that its
liabilities greatly exceed its assets. Which principle would be violated if its financial
statements were prepared using standard U.S. GAAP?
A.
Entity assumption
B.
Continuity assumption
C.
Historical cost principle
D.
Stable-monetary-unit assumption
B.
Continuity assumption
Equity=
Assets - Liabilities
Net Income (loss)
Revenues - Expenses
Accounting Equation
Equity= Assets - Liabilities
The costs of doing business are classifed as:
A.
assets.
B.
expenses.
C.
liabilities.
D.
revenues.
Answers Complete
Financial statements can be used by which of the following groups?
A.
Individuals
B.
Investors and creditors
C.
Regulatory bodies
D.
All of the above.
D.
All of the above.
Nicholas is a software engineer and is starting a consulting practice. What form of
business organization limits his liability to the amount he has invested in the business?
A.
Corporation
B.
Proprietorship
C.
Partnership
D.
None of the above.
A.
Corporation
An organization's investors and creditors will primarily use information provided by:
A.
the Internal Revenue Service.
B.
the organization's financial accounting system.
C.
the organization's managerial accounting system.
D.
the Financial Accounting Standards Board.
B.
the organization's financial accounting system.
The primary objective of financial reporting is to provide information
A.
useful for making investment and credit decisions.
B.
on the cash flows of the company.
C.
to the federal government.
,D.
about the profitability of the enterprise.
A.
useful for making investment and credit decisions.
Which type of business organization provides the least amount of protection for bankers
and other creditors of the company?
A.
Proprietorship
B.
Corporation
C.
Partnership
D.
Both a and c
B.
Corporation
Frost Enterprise buys a warehouse for $ 510,000 to use for its East Coast distribution
operations. On the date of the purchase, a professional appraisal shows a value of $
600,000 for the warehouse. The seller had originally purchased the building for $
485,000. Frost has a similar warehouse on the West Coast that has a book value of $
524,000. Under the historical cost principle, Frost should record the building for
a- 524000
b-600000
c-485000
d-510000
d-510000
To be useful, information must have which of the following fundamental qualitative
characteristics?
A.
Relevance and faithful representation
B.
Expediency and relevance
C.
Timeliness and affordability
D.
Faithful representation and diversity
A.
Relevance and faithful representation
Which of the following is a true statement about International Financial Reporting
Standards?
A.
They are converging gradually with U.S. standards.
B.
They are not being applied anywhere in the world yet, but soon they will be.
C.
, They are more exact (contain more rules) than U.S. generally accepted accounting
principles.
D.
They are considered to be the single strongest set of accounting standards in the world.
A.
They are converging gradually with U.S. standards.
Assets are usually reported at their
A.
appraised value.
B.
historical cost.
C.
current market value.
D.
none of the above.
B.
historical cost.
Assume that a business is headed for certain bankruptcy and it is evident that its
liabilities greatly exceed its assets. Which principle would be violated if its financial
statements were prepared using standard U.S. GAAP?
A.
Entity assumption
B.
Continuity assumption
C.
Historical cost principle
D.
Stable-monetary-unit assumption
B.
Continuity assumption
Equity=
Assets - Liabilities
Net Income (loss)
Revenues - Expenses
Accounting Equation
Equity= Assets - Liabilities
The costs of doing business are classifed as:
A.
assets.
B.
expenses.
C.
liabilities.
D.
revenues.
