Exam 1 Kahoot Review

Question 1

General-purpose financial statements are the product of

Answer 1

financial accounting

Question 2

Which communication below is recognized in financial reporting but not in financial statements?

Answer 2

President’s letter

Question 3

Which of the following does not help in determining whether a business thrives?

Answer 3

Lack of innovation

Question 4

Which of the following is related to an effective capital allocation?

Answer 4

Provides timely, relevant info and encourages innovation

Question 5

Which of the following is not a major challenge facing the accounting profession?

Answer 5

Accounting for hard assets

Question 6

Accrual accounting is used because

Answer 6

it shows the company’s true ability to generate cash flows

Question 7

A common set of accounting standards and procedures is called

Answer 7

generally accepted accounting principles

Question 8

Which of the following organizations has been responsible for setting US accounting standards?

Answer 8

All of the answer choices are correct (the Accounting Principles Board, the Committee on Accounting Procedure, the Financial Accounting Standards Board)

Question 9

Which organization is responsible for issuing Emerging Issues Task Force Statements?

Answer 9

the FASB

Question 10

Publicly-traded companies are required to submit their financial statements to the

Answer 10

the SEC

Question 11

The underlying theme of the conceptual framework is

Answer 11

decision usefulnessi

Question 12

If the LIFO method was used last period, it should be used for the current period because of

Answer 12

consistency

Question 13

Which of the following is a characteristic describing the fundamental quality of relevance?

Answer 13

Predictive value

Question 14

What of the following is a fundamental quality of useful accounting information?

Answer 14

Relevance

Question 15

What is meant by comparability when discussing financial accounting information?

Answer 15

info is measured and reported similarly across companies

Question 16

Which of the following is an ingredient of faithful representation?

Answer 16

neutrality

Question 17

What is the quality of information that is capable of making a difference in a decision?

Answer 17

relevance

Question 18

Accounting information is considered to be relevant when it

Answer 18

is capable of making a difference in a decision

Question 19

Which of the following does not relate to relevance?

Answer 19

All of these answers choices relate to relevance (materiality, predictive value, confirmatory value)

Question 20

Which of the following elements of financial statements is not a part of comprehensive income?

Answer 20

distributions to owners

Question 21

The process of transferring figures from the book of original entry to the ledger accounts is

Answer 21

posting

Question 22

Which of the following is a nominal (temporary) account?

Answer 22

salaries and wages expense

Question 23

The double-entry accounting system means

Answer 23

The dual effect of each transaction, debit and credit

Question 24

Stockholders’ equity is not affected by all

Answer 24

cash receipts

Question 25

Which of the following is a recordable event or item?

Answer 25

payment of monthly payroll

Question 26

A trial balance may prove that debits and credits are equal, but

Answer 26

All of these answer choices are correct (an amount could be entered in the wrong account, a transaction could have been entered twice, a transaction could have been omitted)

Question 27

A journal entry to record an outgoing payment on account will include a

Answer 27

debit to Accounts Payable

Question 28

An adjusting entry should never include a

Answer 28

debit to an expense account & credit to a revenue account

Question 29

When an expense is paid in cash before it is used, it is called a(n)

Answer 29

prepaid expense

Question 30

An accrued expense can best be described as an amonut

Answer 30

not paid and currently matched with earnings

Question 31

The major elements of the income statement are

Answer 31

revenues, expenses, gains, and losses

Question 32

The income statement reveals

Answer 32

net earnings (net income) of a firm for a period of time

Question 33

The income statement provides investors/creditors with information to predict all of the following except:

Answer 33

the sources of future cash flows

Question 34

Which of the following is an advantage of the single-step income statement over the multi-step?

Answer 34

it does not imply that one type of revenue or expense has priority

Question 35

The single-step income statement emphasizes

Answer 35

total revenues and total expenses

Question 36

Which of the following is not an acceptable method of presenting the income statement?

Answer 36

a partial statement of income

Question 37

Which of the following is not a selling expense?

Answer 37

office salaries expense

Question 38

Companies use intraperiod tax allocation for all of the following items except

Answer 38

changes in accounting estimates

Question 39

Which of the following EPS figures must be disclosed on the face of the income statement?

Answer 39

EPS for income from continuing operations

Question 40

Which of the following items will not appear in the retained earnings statement?

Answer 40

Discontinued operations