WorksheetsAccounting Principles Quiz C1
Total questions: 9
Worksheet time: 4mins
The accounting process is correctly sequenced as
identification, communication, recording.
recording, communication, identification.
identification, recording, communication.
communication, recording, identification.
Which of the following would not be considered an external user of accounting data for the LMN Company?
Taxing authority agent.
Management.
Creditors.
Customers.
Generally accepted accounting principles are
income tax regulations of the taxing authority.
standards that indicate how to report economic events.
theories that are based on physical laws of the universe.
principles that have been proven correct by academic researchers.
The historical cost principle requires that when assets are acquired, they be recorded at
appraisal value.
cost.
market price.
book value.
The Dulce Company has five plants nationwide that cost a total of $200 million. The current fair value of the plants is $600 million. The plants will be recorded and reported as assets at
$200 million.
$600 million.
$400 million.
$800 million.
The economic entity assumption requires that the activities
of different entities can be combined if all the entities are corporations.
must be reported to the IASB.
of a sole proprietorship cannot be distinguished from the personal economic events of its owners.
of an entity be kept separate from the activities of its owner.
Sam Ryo is the proprietor (owner) of Sam's, a retailer of golf apparel. When recording the financial transactions of Sam's, Sam does not record an entry for a car he purchased for personal use. Sam took out a personal loan to pay for the car. What accounting concept guides Sam's behavior in this situation?
Pay back concept
Economic entity assumption
Cash basis concept
Monetary unit assumption
A small neighborhood barber shop that is operated by its owner would likely be organized as a
joint venture.
partnership.
corporation.
proprietorship.
George and Ringo met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a
joint venture.
partnership.
corporation.
proprietorship.
