Accounting Principles 241 Final Exam Study Guide Questions And Answers 2024

Accounting Principles 241 Final Exam Study Guide Questions And Answers 2024Which of the following is not a step in the Accounting Process? A. Identification B. Verification C. Communication D. Recording - correct answer-B. Verification Are Taxing Authorities external or internal Accounting users? - correct answer-External Accounting users Is Management an external or internal Accounting user? - correct answer-Internal Accounting user Are present Creditors external or internal Accounting users? - correct answer-External Accounting users Are Regulatory Authorities external or internal Accounting users? - correct answer-External Accounting users What is the first step in solving an ethical dilemma? A. Recognizing the ethical situation and issues involved. B. Weigh the impact of the alternatives. C. Identify and Analyze the principle elements involved. D. Identify alternatives first. - correct answer-A. Recognizing the ethical situation and issues involved. Which of these is NOT true for the statement... "Ethics are the standards of conduct by which one's actions are judged as..." A. Honest or Dishonest B. Right or Wrong C. Fair or Unfair D. True or False - correct answer-D. True or False What is stated in the Historical Cost Principle? A. Assets should be recorded at initial cost and adjusted when the fair value changes. B. Activities of an entity should be kept separate and distinct from the owner. C. Assets should be recorded at their cost. D. Only transaction data capable of being expressed in terms of money are included in accounting records. - correct answer-C. Assets should be recorded at their cost. What is the purpose of GAAP? A.Standards that indicate how to report economic events. B. Income tax regulations of the Internal Revenue Service. C. Theories that are based on the physical laws of the universe. D. Principles that have been proved by academic researches. - correct answer-A. Standards that indicate how to report economic events. What does the Monetary Unit Assumption state? - correct answer-Companies include in Accounting records only transaction data that can be expressed in monetary terms. Performing services on account will...? A. Increase both assets and liabilities B. Increase both liabilities and owner's equity C. Increase assets and decrease owner's equity D. Increase both assets and owner's equity - correct answer-D. Increase both assets and owner's equity A balance sheet shows...? A. Revenues and Expenses at a certain point in time. B. Assets, Liabilities, and Owner's Equity at a certain point in time. C. Assets, Liabilities, and Owner's Equity in a period of time. D. Revenues and Expenses in a period of time. - correct answer-B. Assets, Liabilities, and Owner's Equity at a certain point in time. Where is the ending Owner's Equity amount shown? - correct answer-In both the balance sheet and owner's equity statement. Which of the following statements is true? A. The primary standard setting body in the U.S. is the IASB B. U.S. GAAP is very "principles based" C. Non-U.S. companies are required to comply with GAAP D. IFRS tends to be similar in its accounting and disclosure requirements. - correct answer-D. IFRS tends to be similar in its accounting and disclosure requirements. IFRS is considered to be more...? A. Principles-based and less rules-based than GAAP. B. Rules-based and less principles-based than GAAP