In a limited-liability company, the ________. A) members are personally liable to pay the entity’s debts B) business pays income tax on earnings C) members are liable for each other’s actions D) members pay income tax on their share of earnings ANSWER D
Date: September 2nd, 2020
Joshua Thomas Corporation manufactures and retails computer hardware. The president of the corporation bought a new car as a gift for his daughter and paid for it using cash from the business Since the corporation paid for the car, it was recorded in its books as an asset. Which of the following concepts or principles […]
Date: September 2nd, 2020
Johnson Company purchased land for $30,000. The president of Johnson Company believes that the land is actually worth $35,000. The land can be recorded at $35,000. Indicate whether the statement is true or false ANSWER FALSE .The cost principle states that acquired assets are recorded at their actual cost.
Date: September 2nd, 2020
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
The Financial Accounting Standards Board is a U.S. governmental agency that oversees the creation and governance of accounting standards. Indicate whether the statement is true or false ANSWER FALSE .The Financial Standards Board is a private organization.
Date: September 2nd, 2020
Which of the following organizations is responsible for the creation and governance of accounting standards in the United States? A) Financial Accounting Standards Board B) Institute of Management Accountants C) American Institute of Certified Public Accountants D) Securities and Exchange Commission ANSWER A
Date: September 2nd, 2020
The guidelines for accounting information are called Generally Accepted Accounting Principles (GAAP). Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
