ACCT 301 Week 1 : Financial Accounting, Accounting Standards, and Conceptual Framework – Quiz
1. (TCO 1) The SEC issues accounting standards in the form of (Points : 4)
accounting research bulletins.
financial reporting releases.
financial accounting standards.
financial technical bulletins.
2. (TCO 2) The enhancing qualitative characteristic of understandability means that information should be understood by (Points : 4)
those who are experts in the interpretation of financial information.
those who have a reasonable understanding of business and economic activities.
financial analysts.
CPAs.
3. (TCO 3) Hughes Aircraft sold a four-passenger airplane for $380,000, receiving a $50,000 down payment and a 12% note for the balance. The journal entry to record this sale would include a (Points : 4)
credit to cash.
debit to cash discount.
debit to note receivable.
credit to note receivable.
4. (TCO 3) Cal Farms reported a supplies expense of $2,000,000 this year. The supplies account decreased by $200,000 during the year to an ending balance of $400,000. What was the cost of supplies Cal Farms purchased during the year? (Points : 4)
$1,600,000
$1,800,000
$2,200,000
$2,400,000
5. (TCO 3) Permanent accounts would not include (Points : 4)
interest expense.
wages payable.
prepaid rent.
unearned revenues.
