2.A mechanical task involving the collection of basic financial data

(1 Point)

Auditing

Accountancy

Bookkeeping

Taxation

3.All of the following affect the owner's equity account EXCEPT

(1 Point)

Withdrawal by the owner

Additional investment

Payment of a liability

Original investment

4.Expenses can be defined as

(1 Point)

Increases in owner's equity

Decreases in owner's equity

Inflows of assets from delivering or producing goods or rendering services

Decreases in economic benefits in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity

5.Obligations which are expected to be liquidated through the use of the existing current assets or the creation of other current liabilities are called

(1 Point)

Current assets

Current liabilities

Noncurrent assets

Noncurrent liabilities

6.Stating assets and liabilities and changes in them in terms of a common financial denominator is a requisite in measuring financial position and periodic net income.

(1 Point)

Accrual

Exchange price

Unit of measure

Measurement of economic resources and obligations

7.Which of the following best describes the attributes of a partnership? In terms of (1) Raise of capital and2) Personal Liability

(1 Point)

(1) Limited (2) Limited

(1) Limited (2) Unlimited

(1) Large capital (2) Limited

(1) Large capital (2) Unlimited

8.Which of the following items has no effect on owner's equity?

(1 Point)

Revenue

Expense

Withdrawals

Land acquired

9.An adjusting entry can include a debit to a(n)

(1 Point)

Asset and a credit to a liability

Expense and a credit to a revenue

Liability and a credit to a revenue

Revenue and a credit to an asset

10.Reversing entries are

(1 Point)

Optional

Made to record a change in corporate objectives

Required by generally accepted accounting principle

Made prior to preparing a post-closing trial balance

11.When an entity has suffered a loss, the loss amount is entered on the worksheet on the

(1 Point)

Debit side of the income statement columns and the credit side of the Balance sheet

Credit side of the income statement columns and the debit side of the Balance sheet

Debit side of both the income statement and balance sheet columns

Credit side of the income statement and the balance sheet columns

12.Which of the following statements is correct about credit period?

(1 Point)

If a customer purchases goods within the credit period, a cash discount will be allowed to the customer.

If a customer settles the payment within the credit period, a cash discount will be allowed to the customer.

It refers to the period in which customers must settle their debts due

It refers to the period in which customers need to settle one-third of the debts in order to avoid further interests charged.

13.Which of the following goods would not be included in merchandise inventory for a purchasing entity?

(1 Point)

Goods in transit shipped FOB destination

Goods in transit shipped FOB shipping point

Goods on hand in the showroom

Goods ordered and received from the supplier

14.Merchandise inventory becomes part of cost of goods sold when an entity

(1 Point)

Pays for the inventory

Purchases the inventory

Receives payment from the customer

Sells the inventory

15.Which of the following is not likely to be treated as a product cost?

(1 Point)

A. Depreciation on the factory

Interest paid on notes payable

C. Portion of the cost running the quality control department

Wages paid to factory workers

16.An ordinary or preference shareholder is similar to_______ because he can lose no more than the value of the investment.

(1 Point)

general ledger

limited partner

sole proprietor

nominal partner