Grand Quiz A

The accounting process is correctly sequenced as

• identification, communication, recording

• recording, communication, identification

• identification, recording, communication

• communication, recording, identification

the basic accounting equation maybe expressed as

• Assets - Equity = Liabilities

• Assets – Liabilities = Equity

• Assets = Liabilities + Equity

• All of these answer choices are correct

Equity can be described as

• Creditors claim on total assets

• Ownership claim on total assets

• Debtors claim on total assets

• Benefactor's claim on total assets

Bookkeeping primarily involves which of the following parts of the accounting process?

• Identification

• Communication

• Recording

• Analysis

A dividend is

• a distribution of the company's earnings to its shareholders.

• equal to liabilities minus equity.

• equal to assets minus equity.

• equal to revenues less expenses

The assumption that enables accounting to quantify economic events is the

• economic entity assumption

• cost principle

• historical cost principle

• monetary unit assumption

Sources of increases to equity are

• issuance of shares

• purchases of merchandise

• dividends

• expenses

IFRS are determined by the

• International Accounting Standard Body

• International Accounting Studies Board

• International Accounting Standards Board

• International Auditor's Standards Body

The final step in solving an ethical dilemma is to

• identify and analyze the principal elements in the situation

• recognize an ethical situation

• identify the alternatives and weigh the impact of each alt. on stakeholders

• recognize the ethical issues involved

The retained earnings section of the statement of financial position is determined by

• assets, liabilities and share capital

• revenues, expenses and share capital

• share capital, dividends and residual equity

• revenues, expenses and dividends