Acc 557 week 2 quiz


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Acc 557 week 2 quiz

  1. 1. PLEASE DOWNLOAD HERE1- The United States and the international standard-setting environment areprimarily driven by meeting the needs oftax authorities.investors and creditors.academic researchers.central government planners2-- If the retained earnings account increases from the beginning of the year tothe end of the year, thennet income is less than dividends.a net loss is less than dividends.the company must have sold income is greater than dividends3--If an individual asset is increased, thenthere 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 possible4-The accounting process is correctly sequenced asidentification, recording, communication.recording, communication, identification.communication, recording, identification.identification, communication, recording.
  2. 2. 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 includenotes payable.salaries and wages payable.accounts Bright Eyes Downtown Diner received a bill of $600 from the Jronand WineAdvertising Agency. The owner, A. A. Bondy, is postponing payment of the billuntil a later date. The effect on specific items in the basic accounting equationisa 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 increase in Accounts Payable and a decrease in Retained Earnings.8-Net income results whenRevenues > Expenses.Revenues < Expenses.Assets > Liabilities.9- Liabilities of a company are owed tounderwriters.creditors.debtors.
  3. 3. benefactors.10- At October 1, Arcade Fire Enterprises reported stockholders equity of$35,000. During October, common stock of $2,000 was issued and thecompany earned net income of $7,000. If stockholders equity at October 31totals $40,000, what amount of dividends were paid during the month?$2,000$4,000$5,000$011 -Ethics are the standards of conduct by which ones actions are judged asall of these.honest or dishonest.right or wrong.fair or unfair.12- Which of the following is not a reason one set of international accountingstandards are needed?multinational corporationsmergers and acquisitionsinformation technologyall of these are reasons one set of international accounting standards areneeded.13-Stockholders equity is decreased by all of the following exceptexpenses.dividends.sales of losses.
  4. 4. 14-The concern about international companies adopting SOX-type standardscenters onthe governing authorities.comparability.cost-benefit analysis.ethics issues.15- The private sector organization involved in developing accountingprinciples is theFinancial Accounting Standards Board.Financial Auditors Standards Body.Feasible Accounting Standards Body.Financial Accounting Studies Board