,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
l l l l l l l l l l l
n Marshall l
Chapter 02 l l
FinancialStatements and Accounting Concepts/Principles
l l l l
Multiplel Choicel Questions
1. Whichl of l thel f ollowing l is lnotlal transactionl to l bel recorded l inl thel accounting l records l of l anl entity?
A. Investment l of l cashl by l thel owners.
B. Salel of l product l to l customers.
C. Receipt l of l alplaquel recognizing l thel firm's lencouragement l oflemployeel participationl inl thel Unit
ed l Way l f und l drive.
D. Receipt l of l services l f roml al "quick-
print" l shop l inl exchangel forl thel promiseltol providel advertising l designl services l ofl equival
ent l value.
2. Thel balancel sheet l might l also l bel called:
A. Statement l of l Financiall Position.
B. Statement l of l Assets.
C. Statement l of l Changes l inl Financiall Position.
D. Nonel of l thel above.
3. Transactions larel summarized l in:
A. Thel notes l f orl thel f inanciall statements.
B. Thel independent l auditor's l opinionl letter.
C. Thel entity's l accounts.
D. Nonel of l thel above.
2-1
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,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
l l l l l l l l l l l
n Marshall l
4. Al f iscall year:
A. is l always l thel samel as l thel calendarl year.
B. is l f requently l selected l based l onl thel f irm's l operating l cycle.
C. must l always l end l onl thel samel datel eachl year.
D. must l end l onl thel last l day l of l al month.
5. Whichl of l thel f ollowing l is l not l al principall f orml of l business l organization?
A. Partnership.
B. Solel proprietorship.
C. Limited l unregistered l business.
D. Corporation.
E. Nonel of l thel above.
6. Thel timel f ramel associated l withl al balancel sheet l is:
A. al point l inl timel inl thel past.
B. al one-yearl past l period l of l time.
C. al singlel datel inl thel f uture.
D. al f unctionl of l thel inf ormationl included l inl it.
7. Current l U.S. l Generally l Accepted l Accounting l Principles l and l auditing l standards lrequirel thel f ina
nciall statements l of l anl entity l f orl thel reporting l period l to l include:
A. Earnings l and l gross l receipts l of l cashl f orl thel period.
B. Projected l earnings l f orl thel subsequent l period.
C. Financiall positionl atl thel end l of l thel period.
D. Current l f airl values l of l alll assets l at l thel end l of l thel period.
2-2
Copyrightl©l2017 lMcGraw-
HilllEducation.lAlllrights lreserved.lNo lreproductionlor ldistribution lwithoutlthelprior lwritten lconsentlofl McGraw-HilllEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
l l l l l l l l l l l
n Marshall l
8. Thel balancel sheet l equationl canl bel represented l by:
A. Assets l = l Liabilities l + l Stockholders' l Equity
B. Assets l -l Liabilities l = l Stockholders' l Equity
C. Net l Assets l = l Stockholders' l Equity
D. Alll of l thel above.
9. Stockholders' l equity l ref ers l to l whichl of l thel f ollowing?
A. Al listing l of l thel organization's l assets l and l liabilities.
B. Thel ownership l right l of l thel stockholder(s)l of l thel entity.
C. Probablel f uturel sacrif ices l of l economic l benef its.
D. Alll of l thel above.
E. Nonel of l thel above.
10. Accumulated l depreciationlonl al balancel sheet:
A. is l part l of l stockholders' l equity.
B. represents l thel portionl of lthel cost l oflanl asset lthat l isl assumed l tol havel beenl "used l up"l inlthel proces
s l of l operating l thel business.
C. represents l cashl that l willl bel used l to l replacel wornl out l equipment.
D. recognizes l thel economic l loss l inl valuel of l anl asset l becausel of l its l agel orl use.
11. Thel distinctionl betweenl al current l asset l and l otherl assets:
A. is l based l onl howl long l thel asset l has l beenl owned.
B. is l based l onl amounts l that l willl bel paid l to l otherl entities l withinl al year.
C. is l based l onl thel ability l to l determinel thel current l f airl valuel of l thel asset.
D. is l based l onl whenl thel asset l is l expected l to l bel converted l to l cash, l orl used l to l benef it l thel entity.
2-3
Copyrightl©l2017 lMcGraw-
HilllEducation.lAlllrights lreserved.lNo lreproductionlor ldistribution lwithoutlthelprior lwritten lconsentlofl McGraw-HilllEducation.
mynursytest.store
l l l l l l l l l l l
n Marshall l
Chapter 02 l l
FinancialStatements and Accounting Concepts/Principles
l l l l
Multiplel Choicel Questions
1. Whichl of l thel f ollowing l is lnotlal transactionl to l bel recorded l inl thel accounting l records l of l anl entity?
A. Investment l of l cashl by l thel owners.
B. Salel of l product l to l customers.
C. Receipt l of l alplaquel recognizing l thel firm's lencouragement l oflemployeel participationl inl thel Unit
ed l Way l f und l drive.
D. Receipt l of l services l f roml al "quick-
print" l shop l inl exchangel forl thel promiseltol providel advertising l designl services l ofl equival
ent l value.
2. Thel balancel sheet l might l also l bel called:
A. Statement l of l Financiall Position.
B. Statement l of l Assets.
C. Statement l of l Changes l inl Financiall Position.
D. Nonel of l thel above.
3. Transactions larel summarized l in:
A. Thel notes l f orl thel f inanciall statements.
B. Thel independent l auditor's l opinionl letter.
C. Thel entity's l accounts.
D. Nonel of l thel above.
2-1
Copyrightl©l2017 lMcGraw-
HilllEducation.lAlllrights lreserved.lNo lreproductionlor ldistribution lwithoutlthelprior lwritten lconsentlofl McGraw-HilllEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
l l l l l l l l l l l
n Marshall l
4. Al f iscall year:
A. is l always l thel samel as l thel calendarl year.
B. is l f requently l selected l based l onl thel f irm's l operating l cycle.
C. must l always l end l onl thel samel datel eachl year.
D. must l end l onl thel last l day l of l al month.
5. Whichl of l thel f ollowing l is l not l al principall f orml of l business l organization?
A. Partnership.
B. Solel proprietorship.
C. Limited l unregistered l business.
D. Corporation.
E. Nonel of l thel above.
6. Thel timel f ramel associated l withl al balancel sheet l is:
A. al point l inl timel inl thel past.
B. al one-yearl past l period l of l time.
C. al singlel datel inl thel f uture.
D. al f unctionl of l thel inf ormationl included l inl it.
7. Current l U.S. l Generally l Accepted l Accounting l Principles l and l auditing l standards lrequirel thel f ina
nciall statements l of l anl entity l f orl thel reporting l period l to l include:
A. Earnings l and l gross l receipts l of l cashl f orl thel period.
B. Projected l earnings l f orl thel subsequent l period.
C. Financiall positionl atl thel end l of l thel period.
D. Current l f airl values l of l alll assets l at l thel end l of l thel period.
2-2
Copyrightl©l2017 lMcGraw-
HilllEducation.lAlllrights lreserved.lNo lreproductionlor ldistribution lwithoutlthelprior lwritten lconsentlofl McGraw-HilllEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
l l l l l l l l l l l
n Marshall l
8. Thel balancel sheet l equationl canl bel represented l by:
A. Assets l = l Liabilities l + l Stockholders' l Equity
B. Assets l -l Liabilities l = l Stockholders' l Equity
C. Net l Assets l = l Stockholders' l Equity
D. Alll of l thel above.
9. Stockholders' l equity l ref ers l to l whichl of l thel f ollowing?
A. Al listing l of l thel organization's l assets l and l liabilities.
B. Thel ownership l right l of l thel stockholder(s)l of l thel entity.
C. Probablel f uturel sacrif ices l of l economic l benef its.
D. Alll of l thel above.
E. Nonel of l thel above.
10. Accumulated l depreciationlonl al balancel sheet:
A. is l part l of l stockholders' l equity.
B. represents l thel portionl of lthel cost l oflanl asset lthat l isl assumed l tol havel beenl "used l up"l inlthel proces
s l of l operating l thel business.
C. represents l cashl that l willl bel used l to l replacel wornl out l equipment.
D. recognizes l thel economic l loss l inl valuel of l anl asset l becausel of l its l agel orl use.
11. Thel distinctionl betweenl al current l asset l and l otherl assets:
A. is l based l onl howl long l thel asset l has l beenl owned.
B. is l based l onl amounts l that l willl bel paid l to l otherl entities l withinl al year.
C. is l based l onl thel ability l to l determinel thel current l f airl valuel of l thel asset.
D. is l based l onl whenl thel asset l is l expected l to l bel converted l to l cash, l orl used l to l benef it l thel entity.
2-3
Copyrightl©l2017 lMcGraw-
HilllEducation.lAlllrights lreserved.lNo lreproductionlor ldistribution lwithoutlthelprior lwritten lconsentlofl McGraw-HilllEducation.
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