Accounting 1 Unit 2 Final Review

Harley's Hog BBQ owns and operates several barbecue restaurants. In 20XX, Harley, the owner, took out a loan for his business in the amount of $100,000. The loan will be completely paid off within 6 months. When preparing the financial statements of the business, Harley opted not to list the loan because it was so close to maturity. Which principle did Harley's Hog BBQ violate?

• full disclosure principle

• cost principle

• revenue recognition principle

• matching principle

Lisa is applying for a position in a small insurance agency. The company wants to hire an individual that can convert its manual accounting system to a computerized system. She listed on her application that she has an accounting degree as well as an emphasis in computerized systems. These qualifications represent which type of skills?

• basic skills

• workplace skills

• foundation skills

• communication skills

Multiple Choice from Item BankJohn, a certified public accountant, recently learned that a new set of principle-based standards, interpretations, and frameworks have been adopted by the United States and other countries. To better prepare himself, John should learn about what?

• FASB

• GAAP

• GASB

• IFRS

Mary has applied for a position as an accounting clerk for a local company. She listed as her qualifications that she is a problem-solver and needs little direction to complete assigned tasks. These are classified as which type of skills?

• 21st Century skills

• workplace skills

• foundation skills

• communication skills

Jason demonstrates accuracy and truthfulness when he works with his accounting clients. This is an example of which key principle for ethics in accounting?

• competence

• confidentiality

• independence

• integrity

Multiple Choice from Item BankJohn has applied for a position as chief financial officer for a Fortune 500 company. He listed as his qualifications that he is a problem-solver, has the ability to plan, and can resolve issues. These are classified as which skills?

• 21st Century skills

• workplace skills

• foundation skills

• communication skills

Jamie is an accountant. She knows that she is expected to produce accurate financial reports from her audit. She knows when she submits her report to her superiors, her friend will suffer consequences for misappropriation of funds. Jamie submits an accurate report and follows which key principle for ethics in accounting?

• competence

• confidentiality

• materiality

• objectivity

Brian is an accountant in a local firm. He submits an accounting report to his manager that suggests an action that will ultimately benefit him monetarily. Which key principle for ethics in accounting has Brian violated?

• competence

• confidentiality

• independence

• materiality

Daniel Davis, CPA, only prepares tax returns in his business. He is asked to prepare an audit for Watauga Medical Center. Davis refuses to accept the engagement based on his past experience. Which general standard is being followed?

• Due Professional Care

• Sufficient Relevant Data

• Professional Competence

• Planning and Supervision

Bob Martin, CPA, delivers training workshops for CPA exam candidates. In acquiring resources for his workshops, he offers each candidate $100 to provide him information on questions from the exam. Which specific rule of conduct is Martin violating?

• Advertising and Other Forms of Solicitation

• Acts Discreditable

• Acts Unknown

• Independence