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WorksheetsAcct 221 Chapter 02
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
A ______________ establishes the concepts that underlie financial reporting
a)
conceptual framework
b)
codification
c)
journal
d)
ledger
2.
The objective of general-purpose financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions about providing resources to the entity.
a)
true
b)
false
3.
Timeliness is a enhancing characteristic for decision usefulness
a)
true
b)
false
4.
Relevant information also helps users confirm or correct prior expectations; it has ________ value.
a)
confirmatory
b)
affirmative
c)
objective
d)
predictive
5.
Only by the exercise of good judgment and professional expertise can reasonable and appropriate answers be found with respect to materiality issues
a)
true
b)
false
6.
_______ means that a company cannot select information to favor one set of interested parties over another
a)
Neutrality
b)
Predictive Value
c)
Completeness
d)
Free from error
7.
Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events is a(n).
a)
asset
b)
liability
c)
revenue
d)
expense
8.
Decreases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from expenses or distributions to owners are called a(n)
a)
expense
b)
loss
c)
revenue
d)
gain
9.
The basic assumptions that underlie the financial accounting structure are: (1) economic entity, (2) going concern, (3) monetary unit, and (4) periodicity.
a)
true
b)
false
10.
The assumption that the company will have a long life
a)
economic entity
b)
going concern
c)
monetary unit
d)
periodicity
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