CPCU 540 Exam Questions And Answers
Verified 100% Correct
Accounting activities include Select
one:
A. Providing access to financial markets.
B. Managing an organization's intangible assets.
C. Managing an organization's capital.
D. Accumulating and reporting financial data. - ANSWER -D.
Accumulating and reporting financial data.
Capital budgeting manages a corporation's
Select one:
A. Insurance purchases.
B. Cash inflows.
C. Long-term investments.
D. Accounts receivable. - ANSWER -C. Long-term investments.
,The focus of finance activities is on Select
one:
A. Accumulating data for internal use.
B. Reporting financial data for external use.
C. Determining an organization's tax structure.
D. Obtaining and managing an organization's capital. - ANSWER -D.
Obtaining and managing an organization's capital.
Current assets include
Select one:
A. Equipment.
B. Patents.
C. Leaseholds.
D. Inventory. - ANSWER -Inventory
Which one of these GAAP concepts requires an organization's assets
to be recorded at their purchase price or production price?
Accrual versus cash basis accounting
Cost principle
,Matching principle
Revenue recognition principle - ANSWER -Cost principle
A firm records revenues and expenses as they are incurred. This is
called
Select one:
A. Going concern accounting.
B. Tax basis accounting.
C. Accrual basis accounting.
D. Cash basis accounting. - ANSWER -C. Accrual basis accounting.
When accountants are able to ignore generally accepted accounting
principles when recording some insignificant items, they are
following the
A. Conservatism principle.
B. Materiality principle.
C. Cost principle.
D. Matching principle. - ANSWER -. Materiality principle.
Under the cost principal of generally accepted accounting principles
(GAAP),
, Select one:
A. Transactions must be recorded at their acquisition cost.
B. Transactions must be recorded at their fair market value.
C. Transaction records must reflect any premium or discount.
D. Transactions must be recorded consistently, either at acquisition
cost or fair market value - ANSWER -A. Transactions must be
recorded at their acquisition cost.
When the books of a business show the value of property at its
depreciated value rather than its purchase price, this is an illustration
of the generally accepted accounting principle (GAAP) of Select one:
A. Monetary.
B. Materiality.
C. Conservatism
D. Cost. - ANSWER -C. Conservatism.
One of the generally accepted accounting principles (GAAP) is the
conservatism principle, which requires Select one:
A. Expenses incurred in generating revenues to be matched
against those revenues.
B. An organization to use the same accounting principles and
reporting practices in every accounting period.
C. Transactions to be recorded in a manner such that that assets
and earnings are not overstated.
Verified 100% Correct
Accounting activities include Select
one:
A. Providing access to financial markets.
B. Managing an organization's intangible assets.
C. Managing an organization's capital.
D. Accumulating and reporting financial data. - ANSWER -D.
Accumulating and reporting financial data.
Capital budgeting manages a corporation's
Select one:
A. Insurance purchases.
B. Cash inflows.
C. Long-term investments.
D. Accounts receivable. - ANSWER -C. Long-term investments.
,The focus of finance activities is on Select
one:
A. Accumulating data for internal use.
B. Reporting financial data for external use.
C. Determining an organization's tax structure.
D. Obtaining and managing an organization's capital. - ANSWER -D.
Obtaining and managing an organization's capital.
Current assets include
Select one:
A. Equipment.
B. Patents.
C. Leaseholds.
D. Inventory. - ANSWER -Inventory
Which one of these GAAP concepts requires an organization's assets
to be recorded at their purchase price or production price?
Accrual versus cash basis accounting
Cost principle
,Matching principle
Revenue recognition principle - ANSWER -Cost principle
A firm records revenues and expenses as they are incurred. This is
called
Select one:
A. Going concern accounting.
B. Tax basis accounting.
C. Accrual basis accounting.
D. Cash basis accounting. - ANSWER -C. Accrual basis accounting.
When accountants are able to ignore generally accepted accounting
principles when recording some insignificant items, they are
following the
A. Conservatism principle.
B. Materiality principle.
C. Cost principle.
D. Matching principle. - ANSWER -. Materiality principle.
Under the cost principal of generally accepted accounting principles
(GAAP),
, Select one:
A. Transactions must be recorded at their acquisition cost.
B. Transactions must be recorded at their fair market value.
C. Transaction records must reflect any premium or discount.
D. Transactions must be recorded consistently, either at acquisition
cost or fair market value - ANSWER -A. Transactions must be
recorded at their acquisition cost.
When the books of a business show the value of property at its
depreciated value rather than its purchase price, this is an illustration
of the generally accepted accounting principle (GAAP) of Select one:
A. Monetary.
B. Materiality.
C. Conservatism
D. Cost. - ANSWER -C. Conservatism.
One of the generally accepted accounting principles (GAAP) is the
conservatism principle, which requires Select one:
A. Expenses incurred in generating revenues to be matched
against those revenues.
B. An organization to use the same accounting principles and
reporting practices in every accounting period.
C. Transactions to be recorded in a manner such that that assets
and earnings are not overstated.
