Question 1 Which of the following accounts has a debit balance? a*Debts to pay b

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Question 1

Which of the following accounts has a debit balance?

a*Debts to pay

b*Accumulated taxes

c*Accumulated depreciation

d*Input expenditure

Question 2

The concepts of recognition and measurement of the conceptual framework recognize which of the following is a presumption rather than a principle?

a*Monetary unit

b*Historical cost

c*Total exposure (full disclosure)

d*Realization

Question 3

The recognition of expected losses immediately, but the deferred expected earnings is an example of:

a*Materiality

b*Conservatism

c*Cost effectiveness

d*Opportunity

Question 4

Which of the following accounts is closed at the end of the accounting period?

a*Provision for uncollectible accounts

b*Unearned income

c*Retained earnings

d*Rental expense

Question 5

The presumption of periodicity is related to the qualitative characteristic of opportunity.

True

False

Question 6

Property, plant equipment includes machinery, equipment and land.

True

False

Question 7

The Income Statement summarizes the operating activity of a company on a specific date.

True

False

Question 8

The rules-based approach to establishing standards emphasizes professional judgment which is the opposite of following a list of rules.

True

False

Question 9

Which of the following elements best demonstrates the principle of full disclosure (full disclosure principle)?

a*Multi-step income statement

b*Audit report

c*Company tax return

d*Explanatory notes to the financial statements

Question 10

The CPAs are licensed by:

a*AICPA

b*SEC

c*federal government

d*state government

Question 11

Revenue should not be recognized until:

a*The earnings process has been completed and the money collected is reasonably assured

b*The contracts have been signed and the payment has been received

c*The work has been done and customers have received the bill of collection

d*The payment has been collected and the guarantees have expired

Question 12

An example of a counter account is:

a*Depreciation expense

b*Accounts receivable

c*Sales revenue

d*Accumulated depreciation

Question 13

The adjustment of accounting entries is first and foremost necessary in accrual accounting.

True

False

Question 14

The income / expenditure approach emphasizes:

a*Recognition of income (applying the principle of realization)

b*Recognition of expenses (applying the principle of agreement)

c*The income statement

d*All the above are correct

Question 15

What is the FASB code for business combinations?

a*830

b*901

c*805

d*1020

Question 16

The purpose of the conceptual framework is to provide a consistent structure and framework for GAAP.

True

False

Explanation / Answer

1. D

2. D

3. B

4. D

5. A

6. B land not included

7.False

As too many questions are asked we have to answer only first 4. Hope you will understand.

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