ACCT212 Week 1 Quiz Latest 2017 November (all correct answers)

Question 1

3 / 3 pts

(TCO 1) Accounting

measures business activities.

processes data into reports and communicates the data to decision makers.

is often called the language of business.

All of the above

Question 2

3 / 3 pts

(TCO 1) The _____ is elected by the stockholders and is responsible for setting policy and appointing officers.

board of directors

chief executive officer (CEO)

chief financial officer (CFO)

advisory council

Question 3

3 / 3 pts

(TCO 1) Which of the following is a correct statement about GAAP and IFRS?

IFRS prefers valuing assets at historical cost while GAAP prefers using fair value.

IFRS is more "rules-based" than GAAP.

The FASB and the IASB are working towards convergence of standards.

The SEC will require all companies to use IFRS beginning in 2013.

Question 4

3 / 3 pts

(TCO 1) Historical cost

is determined for each asset on a yearly basis.

is equal to the amount of cash paid less the dollar value of all non-cash consideration given in the exchange.

is a verifiable measure that is relatively free from bias.

is the amount that the business could sell the asset for.

Question 5

3 / 3 pts

(TCO 1) Liabilities are

a form of paid-in capital.

future economic benefits to which a company is entitled.

debts payable to outsiders called creditors.

the outflow of resources that decrease common stock.

Question 6

3 / 3 pts

(TCO 1) The owners' equity of any business is its

revenues minus expenses.

assets minus liabilities.

assets plus liabilities.

paid-in capital plus assets.

Question 7

3 / 3 pts

(TCO 1) When total expenses exceed total revenues, the result is

a net profit.

a net loss.

a dividend.

retained earnings.

Question 8

3 / 3 pts

(TCO 1) Which of the following would appear on the balance sheet?

Assets and operating cash flows

Dividends and liabilities

Assets and liabilities

Owners' equity and revenues

Question 9

3 / 3 pts

(TCO 1) A potential investor interested in evaluating a company's financial earning performance for the current period would probably examine which of the following financial statements?

balance Sheet only

Income Statement only

Statement of cash flows and income statement

Statement of retained earnings and balance sheet

Question 10

3 / 3 pts

(TCO 1) What is the proper order for the categories of the statement of cash flows?

Financing activities, investing activities, and operating activities

Operating activities, investing activities, and financing activities

Operating activities, financing activities, and investing activities

Investing activities, financing activities, and operating activities