Question Details

ACC 557 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. 5-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. Revenues = Expenses. 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