Chap 11.Mostly the objective of a business is not to make a profit.错2. A corporation is a business that is legally separate and distinct from its owners.对3. Accounting is a service that provides many different users with financial information to make economic decisions.对4. Primary users of accounting information are accountants.错5. "Managerial accounting is primarily concerned with the recording and reporting of economic data and activities of an entity for use by owners, creditors, governmental agencies, and the public." 错6. The financial statements of a proprietorship should include the owner's personal assets and liabilities.错7. The unit of measurement concept requires that economic data be recorded in a common unit of measurement 对8. "If a building is appraised for $90,000, offered for sale at $95,000, and the buyer pays $85,000 cash for it, the buyer would record the building at $90,000." 错9.An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a答案BA. proprietorshipB. corporationC. partnershipD. governmental unit10.Which of the following best describes accounting? BA. records economic data but does not communicate the data to users according to any specific rulesB. is an information system that provides reports to stakeholdersC. is of no use by individuals outside of the businessD. is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements11. The two most common specialized fields of accounting in practice are BA. forensic accounting and financial accountingB. managerial accounting and financial accountingC. managerial accounting and environmental accountingD. financial accounting and tax accounting systems12.Which of the following is not a characteristic of financial accounting ______ CA. external reportingB. general-purpose informationC. future orientationD. standard and uniform reporting13.The business entity concept means that DA. the owner is part of the business entityB. an entity is organized according to state or federal statutesC. an entity is organized according to the rules set by the FASBD. "the entity is an individual economic unit for which data are recorded, analyzed, and reported"14."For accounting purposes, the business entity should be considered separate from its owners if the entity is" DA. a corporationB. a proprietorshipC. a partnershipD. all of the above15."Tom Smith is the owner of a small bookstore. He mainly does business through the internet so that the store has no physical office room and the ordersare dealt with at home. As a result, such bills as electricity, heating, telephone, and housecleaning are all recorded as expenses of the bookstore. This is not correct from the viewpoint of _______" AA. the separate entity conceptB. the going concern assumptionC. the accounting period conceptD. the monetary measurement assumption16.Which of the followings assures the accounting information users of timely decision___________ CA. the separate entity conceptB. the going concern assumptionC. the accounting period conceptD. the monetary measurement assumption17."Smith Company purchased $105,000 of computer equipment from Brown Company. Smith Company paid for the equipment using cash that had been obtained from the initial investment by Connie Smith. The transaction involving the computer equipment should be recorded on the accounting records of which of the following entities?" DA. Smith Company and Connie Smith's personal recordsB. Brown Company and Connie Smith's personal recordsC. Brown CompanyD. Smith Company and Brown Company18."The Reynolds Company estimated that the value of its land had increased from $10,000 to $16,000 and therefore wrote up the land account to $16,000. Which accounting concept(s) was (were) violated?" CA. separate entity conceptB. money measurement conceptC. historical cost conceptD. accounting period concept19.“Equipment with an estimated m arket value of $45,000 is offered for sale at $65,000. The equipment is acquired for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is" AA.50000B.65000C.10000D.4500020."(mark out all correct answers) Which of the followings should not be included in the financial records of Delicious Sam, a bakery at the corner of the street ____________" A C DA. "Sweetie Alice, another bakery located opposite to Delicious Sam, lowered its price for brown bread from 50 cents to 30 cents "B. Delicious Sam purchased 100kg of flour for $50C. "Sweetie Alice sold cookie of $10 to Sam, the owner of Delicious Sam."D. Delicious Sam promised free delivery to bulk buying customers in order to compete with Sweetie Alice.E. Sam withdrew $200 from his personal bank account to pay the bill from the miller who supplied flour to Delicious SamChap 2 –a3.An asset must have a physical substance and can be touched. 错9. Match each of the following items to: a. assets; b. liabilities; c. owners' equity;d. none of above items. 1.ending inventory ; 2.accounts payable to the suppliers;3.salaries due but unpaid;4.accounts receivable;5.retained earnings;6.capital stock;7.prepaid insurance答案：a b b a c c a13.How does the collection of cash from a customer who was previously put on account affect the accounting equation?答案CA．assets decrease; owner's equity decreases B.assets increase; owner's equity increasesC. assets increase; assets decreaseD. assets increase; liabilities increase25.(mark out all correct answers) The owner’s equity accounts of a partnership might be答案 B D EA. capital stockB. "Tom Smith, capital"C. retained earningsD. "Alice Butler, capital"E. "Pauline Jones, capital"Chap 2 –b3.Indicate for each of following transactions should related accounts be debited or credited. 1.Purchased inventory on account. The inventory account should be____; 2.Borrowed money from a bank. The notes payable account should be___; 3.Issued stock for cash. The capital stock should be____ 答案D C C6.Owner's equity is increased by 答案BA. cashB. revenueC. accounts receivableD. all of the above8."For a corporation, temporary proprietorship accounts are supposed to replace the ____________________ account temporarily."答案 retained earnings12.Consuming goods and services in the process of generating revenues results in expenses. 对17. Net profit reported in the Income statement will not be reduced when the corporation declares and pays cash dividends to the stockholders 对21. A credit signifies a decrease in 答案AA. drawingsB. liabilitiesC. capitalD. revenue27."Land, originally purchased for $20,000, is sold for $75,000 in cash. What is the effect of the sale on the accounting equation?" 答案BA. "assets increase $75,000; owner's equity increases $75,000"B. "assets increase $55,000; owner's equity increases $55,000"C. "assets increase $75,000; liabilities decrease $20,000; owner's equity increases $55,000"D. "assets increase $20,000; no change for liabilities; owner's equity increases $75,000"29.Which of the following entries records the payment of an account payable? 答案 DA. debit Cash; credit Accounts PayableB. debit Accounts Receivable; credit CashC. debit Cash; credit Supplies ExpenseD. debit Accounts Payable; credit CashChap 3 –a2.Which one of the following is a purpose of the ledger rather than a purpose of the journal?答案 AA. to show increases and decreases in accountsB. to show a chronological order for transactionsC. to show a complete transaction in one placeD. to help locate errors10.The accounting entry to record the purchase of office supplies for cash will not involve an expense account. 对14.The process of transferring the data from the journal to the ledger accounts is posting. 对20.Posting a transaction twice will not cause the trial balance totals to be unequal.对21.Journalizing a transaction with both the debit and the credit for $69 instead of $96 will cause the trial balance to be out of balance. 错23."The total number at the bottom of the trial balance should equal to the total number at the bottom of the balance sheet, because they both show the equality of the accounting equation." 错24.(mark out all correct answers) The credit column of a T/B might include _______ accounts。
