Solved by verified expert 🙂 The accounting process is correctly sequenced as
A. identification, communication, recording B. recording, communication, identification C. identification, recording, communication D. communication, recording, identification
2) Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process?
A. Identification B. Communication C. Recording D. Analysis
3) Generally accepted accounting principles are
A. income tax regulations of the Internal Revenue Service B. standards that indicate how to report economic events C. theories that are based on physical laws of the universe D. principles that have been proven correct by academic researchers
4) The private sector organization involved in developing accounting principles is the
A. Feasible Accounting Standards Body B. Financial Accounting Studies Board C. Financial Accounting Standards Board D. Financial Auditors’ Standards Body
5) GAAP stands for
A. Generally Accepted Auditing Procedures B. Generally Accepted Accounting Principles C. Generally Accepted Auditing Principles D. Generally Accepted Accounting Procedures
6) The four primary financial statements are
A. the general ledger, the working trial balance, the general journal and the balance sheet B. the balance sheet, the working trial balance, the income statement and the statement of cash flows C. the cash account, the statement of stockholder’s equity, the year-end worksheet, and the balance sheet D. the balance sheet, the income statement, the statement of stockholder’s equity and the statement of cash flows
7) Which of the following financial statements is a point in time report?
A. Balance sheet B. Income statement C. Statement of stockholder’s equity D. Statement of cash flows
8) In recording an accounting transaction in a double-entry system,
A. the number of debit accounts must equal the number of credit accounts B. there must always be entries made on both sides of the accounting equation C. the amount of the debits must equal the amount of the credits D. there must only be two accounts affected by any transaction
9) An account will have a credit balance if the
A. credits exceed the debits B. first transaction entered was a credit C. debits exceed the credits D. last transaction entered was a credit
10) Which of the following statements is true?
A. Debits increase assets and increase liabilities. B. Credits decrease assets and decrease liabilities. C. Credits decrease assets and increase liabilities. D. Debits decrease liabilities and decrease assets.
