Accounting Principles Quiz

True or False (type T for True or F for False)

An accounting system has flexibility if it is able to be used by many different companies at the same time.

A company will usually replace a manual accounting information system with an electronic system as the operations increase in ...

• efficiency

• complexity

• simplicity

• productivity

True or False (type T for True or F for False)

The accounts payable subsidiary ledger provides detailed information about amounts owed to creditors.

The composite balance of individual accounts in the accounts payable subsidiary ledger must ...

• equal the composite balance of the individual accounts in the accounts receivable subsidiary ledger

• always be zero

• equal the balance of the accounts payable account in the general ledger

• agree with the total of the Accounts payable column in the cash receipt journal

True or False (type T for True or F for False)

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is ...

• manufacturing overhead

• indirect materials

• indirect labor

• direct labor

Which one of the following is an example of a period cost?

• A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer

• Workers' compensation insurance on factory workers' wages allocated to the factory

• A box cost associated with computers

• A manager's salary for work that is done in the corporate head office

True or False (type T for True or F for False)

The balanced scorecard approach attempts to maintain as little inventory on hand as possible.

A corporation acts under its own name rather than in the name of its stockholders.

Which one of the following would not be considered an advantage of the corporate form of organization?

• Limited liability of owners

• Separate legal existence

• Continuous life

• Government regulation