Accounting Basics MCQs

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An objective of financial reporting is






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Which of the following is true regarding the comparison of managerial and financial accounting?






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The accounting measurement that is not consistent with the going concern concept is






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When classifying assets as current and noncurrent for reporting purposes,






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A statement of financial position is intended to help investors and creditors






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A statement of financial position provides a basis for all of the following except






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Noncurrent debt should be included in the current section of the statement of financial position if






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A primary objective of external financial reporting is






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The primary purpose of the statement of financial position is to reflect






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ABC operates a catering service that specializes in business luncheons for large corporations. ABC requires customers to place their orders 2 weeks in...






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A company provides fertilization, insect control, and disease control services for a variety of trees, plants, and shrubs on a contract basis. For $50...






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A department store sells gift certificates that may be redeemed for merchandise. Each certificate expires 3 years after issuance. The revenue from the...






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In a process-costing system, the cost of abnormal spoilage should be






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Fact Pattern: Levittown Company employs a process cost system for its manufacturing operations. All direct materials are added at the beginning of ...






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Fact Pattern: " Levittown Company employs a process cost system for its manufacturing operations. All direct materials are added at t...






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Management accounting differs from financial accounting in that financial accounting is






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A distinction between a surety and a cosurety is that only a cosurety is entitled to






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Ivor borrowed $420,000 from Lear Bank. At Lear’s request, Ivor entered into an agreement with Ash, Kane, and Queen for them to act as cosureties o...






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Nash, Owen, and Polk are cosureties with maximum liabilities of $40,000, $60,000, and $80,000, respectively. The amount of the loan on which they ha...






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Ingot Corp. lent Flange $50,000. At Ingot’s request, Flange entered into an agreement with Quill and West for them to act as compensated cosuretie...






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Mane Bank lent Eller $120,000 and received securities valued at $30,000 as collateral. At Mane’s request, Salem and Rey agreed to act as uncompens...






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Lane promised to lend Turner $240,000 if Turner obtained sureties to secure the loan. Turner agreed with Rivers, Clark, and Zane for them to act as ...






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Which of the following rights does one cosurety generally have against another cosurety?






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Which of the following is not one of the approaches for reporting accounting changes?