Question details

Embry BUSW500 Module 4.6 Accounting Quiz 2016
$ 20.00


Question 1

4 / 4 pts

When a company borrows cash from a bank, which of the following will occur?

An increase to cash

A decrease to accounts receivable

A decrease to notes payable

An increase to owners' capital

Question 2

4 / 4 pts

Which of the following assets is assumed to have an unlimited useful life?





Question 3

4 / 4 pts

The primary responsibility for setting the rules of accounting rests with the:

Financial Accounting Standards Board (FASB).

American Institute of CPAs (AICPA)

Generally Accepted Accounting Principles (GAAP)

Security and Exchange Commission (SEC)

Question 4

4 / 4 pts

Which financial statement includes only those activities that result in cash changing hands during the period?

Statement of cash flows

Income statement

Balance sheet

Statement of owner's equity

Question 5

4 / 4 pts

The income statement reports:

Only sales amounts paid in cash

The financial position on a particular date

Net income or loss for the period

Revenues, assets and expenses

Question 6

4 / 4 pts

Expenses are:

Incurred only when cash is paid

Costs incurred to generate revenues

Increases to owner's equity

Recorded as credits in journal entries.

Question 7

4 / 4 pts

Which of the four basic financial statements provides a snapshot of the business on a particular day?

Balance sheet

Statement of owner's equity

Income statement

Statement of cash Flows

Question 8

4 / 4 pts

For external financial reporting GAAP requires use of:

Either cash basis or accrual basis accounting

Accrual basis accounting

Cash basis accounting

Credit basis accounting

Question 9

4 / 4 pts

The statements of financial accounting standards and other authoritative pronouncements that define what constitutes acceptable accounting practice for financial reporting are collectively referred to as:





Question 10

4 / 4 pts

Which depreciation method produces an equal amount of depreciation each period?




Weighted Average

Question 11

4 / 4 pts

Financial information that is __________ ensures that it is unbiased and verifiable.





Question 12

4 / 4 pts


Is another term for depreciation of fixed assets

Can be used to expense the cost of intangible assets with unlimited lives.

Is an accelerated depreciation method

Is a method used to allocate the cost of an intangible asset over its limited useful life

Question 13

4 / 4 pts

Terms for the left and right side of an account are known as:





Question 14

4 / 4 pts

Activities involving the purchase and sale of long-term assets as well as other major items used in a business's operation are referred to as:

Financing activities

Planning activities

Operating activities

Investing activities

Question 15

4 / 4 pts

A debit is:

A decrease in an account.

The left side of a T-account

An increase in an account

The right side of a T-account

Question 16

4 / 4 pts

Which inventory costing method assigns the earliest units received to cost of goods sold?

Weighted average

Specific identification



Question 17

4 / 4 pts

Which of the following statements is true?

Double-entry accounting systems have existed for at least 2,000 years

Before the advent of a money economy, the double-entry accounting system was not feasible

The double-entry accounting system came about as a result of the Great Depression

Accounting systems developed in the 18thcentury because, by then, most people were literate

Question 18

4 / 4 pts

The organization responsible for setting U.S. external financial reporting practice is the:

Financial Accounting Standards Board

American Institute of Certified Public Accountants

Federal Government

Securities and Exchange Commission

Question 19

4 / 4 pts

When sales are made on account, which of the following will occur?

Accounts receivable will increase

Cash will increase

Accounts payable will decrease

Revenues will decrease

Question 20

4 / 4 pts

Which of the following is not one of the four basic financial statements?

Balance sheet

Accounting equation

Statement of cash flows

Income statement

Question 21

4 / 4 pts

When expenses are incurred, what is the effect on the accounting equation?

Assets will increase

Owner's equity will increase

Liabilities will decrease

Owner's equity will decrease

Question 22

4 / 4 pts

When faced with uncertainty about the amount at which assets and liabilities should be recorded, accountants should follow which principle, in order to avoid misleading users of financial statements?





Question 23

4 / 4 pts

Resources a business owns are called:




Owner's equity

Question 24

4 / 4 pts

An account with the word "prepaid" in the title is a(n):





Question 25

4 / 4 pts

Which of the following is an example of a liability account?

Prepaid Rent

Unearned Revenue





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