The ultimate control of the corporation rests with the ________. A) board of directors B) stockholders C) chairperson D) chief operating officer ANSWER B
Date: September 2nd, 2020
Since cost is a reliable measure, the cost principle holds that the accounting records should continue reporting an asset at its historical cost over its useful life. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
According to the ________, acquired assets should be recorded at the amount actually paid rather than at the estimated market value. A) going concern assumption B) economic entity concept C) cost principle D) monetary unit assumption ANSWER C
Date: September 2nd, 2020
Lorna Smith decided to start her own CPA practice as a professional corporation, Smith CPA PC. Her corporation purchased an office building for $35,000 that her real estate agent said was worth $50,000 in the current market The corporation recorded the building as a $50,000 asset because Lorna believes that is the real value of […]
Date: September 2nd, 2020
Which of the following actions determines when a corporation comes into existence? A) The charter is obtained from the state. B) The incorporators pay fees, sign the charter, and file required documents with the state. C) The first share of stock is issued. D) The corporate bylaws are written. ANSWER C
Date: September 2nd, 2020
A business purchases a building for $250,000. The current market value is $375,000. The assessment value is $325,000. What value should the building be recorded at, and which accounting principle supports your answer? What will be an ideal response ANSWER The building should be recorded at the actual cost of $250,000. This is supported by […]
Date: September 2nd, 2020
Regarding the separation of corporate ownership and management, which of the following is a true statement? A) The corporate officers elect the board of directors. B) The corporation runs better with day-to-day input from stockholders. C) None of the stockholders have the ability to manage the business of the corporation. D) Stockholders own the business, […]
Date: September 2nd, 2020
Ten years ago a corporation purchased a building for $160,000. At that time, the corporation felt that the business was worth $185,000. The current market value of the business is $460,000 The building has been assessed at $435,000 for property tax purposes. At which amount should the corporation record the building in its accounting records? […]
Date: September 2nd, 2020
Which of the following statements is true of the corporate form of business? A) The board of directors sets policy for the corporation and appoints the officers. B) Changes in the ownership of stock has a negative effect on the continuity of the corporation. C) Any stockholder may commit the corporation to a contract. D) […]
Date: September 2nd, 2020
As per the ________, the entity will remain in operation for the foreseeable future. A) economic entity concept B) monetary unit assumption C) going concern assumption D) cost principle ANSWER C
Date: September 2nd, 2020
