ACC 557 Week 2, Quiz - Graded 100% Latest Version.docx

ACC 557 Week 2, Quiz - Graded 100% Latest V Week 2 Quiz 1-  The United States and the international standard-setting environment are primarily driven by meeting the needs of • tax authorities. • investors and creditors. • academic researchers. • central government planners 2-    -  If the retained earnings account increases from the beginning of the year to the end of the year, then • net income is less than dividends. • a net loss is less than dividends. • the company must have sold stock. • net income is greater than dividends 3-    -If an individual asset is increased, then • there must be an equal decrease in a specific liability. • there must be an equal decrease in stockholders’ equity. • there must be an equal decrease in another asset. • any of these is possible 4-The accounting process is correctly sequenced as • identification, recording, communication. • recording, communication, identification. • communication, recording, identification. • identification, communication, recording. 4-  If total assets equal $345,000 and total stockholders’ equity equal $120,000, then total liabilities must equal • $465,000. • There is not enough information given to determine this. • $225,000. • $120,000. 6-Liabilities of a company would not include • notes payable. • salaries and wages payable. • accounts payable. • cash. 7- Bright Eyes Downtown Diner received a bill of $600 from the Jronand Wine Advertising Agency. The owner, A. A. Bondy, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is • a decrease in Accounts Payable and an increase in Retained Earnings. • a decrease in Cash and an increase in Retained Earnings. • a decrease in Cash and an increase in Accounts Payable. • an increase in Accounts Payable and a decrease in Retained Earnings. • 8-Net income results when • Revenues Expenses. • Revenues Expenses. • Assets Liabilities. 9- Liabilities of a company are owed to • underwriters. • creditors. • debtors. • benefactors. 10- At October 1, Arcade Fire Enterprises reported stockholders’ equity of $35,000. During October, common stock of $2,000 was issued and the company earned net income of $7,000. If stockholders’ equity at October 31 totals $40,000, what amount of dividends were paid during the month? • $2,000 • $4,000 • $5,000 • $0 11 -Ethics are the standards of conduct by which one’s actions are judged as • all of these. • honest or dishonest. • right or wrong. • fair or unfair. 12- Which of the following is not a reason one set of international accounting standards are needed? • multinational corporations • mergers and acquisitions • information technology • all of these are reasons one set of international accounting standards are needed. 13-Stockholders’ equity is decreased by all of the following except • expenses. • dividends. • sales of stock. • net losses. 14-The concern about international companies adopting SOX-type standards centers on • the governing authorities. • comparability. • cost-benefit analysis. • ethics issues. 15- The private sector organization involved in developing accounting principles is the • Financial Accounting Standards Board. • Financial Auditors’ Standards Body. • Feasible Accounting Standards Body. • Financial Accounting Studies Board