ACC 303 Week 3 Quiz | Assignment Help | Strayer University
- strayer university / ACC 303
- 26 Jul 2020
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ACC 303 Week 3 Quiz | Assignment Help | Strayer University
Question 1
According to
Statement of Financial Accounting Concepts No. 8, completeness is an ingredient
of the fundamental quality(ies) of:
Relevance Faithful
Representation
o
No Yes
o
Yes Yes
o
Yes No
o
No No
Question 2
Not adjusting the amounts reported in the financial
statements for inflation is an example of which basic assumption or principle
of accounting?
o
Economic entity
o
Monetary unit
o
Going concern
o
Full disclosure
Question 3
Which basic assumption may not be followed when a
firm in bankruptcy reports financial results?
o
Monetary unit assumption
o
Economic entity assumption
o
Going concern assumption
o
Periodicity assumption
Question 4 .
A decrease in net assets arising from peripheral or
incidental transactions is called a(n)
o
Loss.
o
Expense.
o
Cost.
o
Capital expenditure.
Question 5
Valuing
assets at liquidation values rather than cost is inconsistent with the
o
Materiality constraint.
o
Periodicity assumption.
o
Historical cost principle.
o
Expense recognition principle.
Question 6
Revenue
generally should be recognized
o
At the time of cash collection.
o
When realized.
o
When the performance obligation is
satisfied.
o
At the end of production.
Question 7
A soundly
developed conceptual framework of concepts and objectives should
o
Increase financial statement users'
understanding of and confidence in financial reporting.
o
Enhance comparability among companies'
financial statements.
o
Allow new and emerging practical
problems to be more quickly solved.
o
All of these answer choices are correct.
Question 8
Which of the
following is an argument against using historical cost in accounting?
o
Historical costs are reliable.
o
Fair values are subjective.
o
Historical costs are based on an
exchange transaction.
o
Fair values are more relevant.
Question 9
Which of the
following elements of financial statements is not a component of comprehensive
income?
o
Distributions to owners
o
Losses
o
Expenses
o
Revenues
Question 10
What is the
general approach as to when product costs are recognized as expenses?
o
In the period when the expenses are
incurred
o
In the period when the vendor invoice is
received
o
In the period when the expenses are paid
o
In the period when the related revenue
is recognized
Question 11
Neutrality
means that information
o
Cannot be selected to favor one set of
interested parties over another.
o
Provides benefits which are at least
equal to the costs of its preparation.
o
Would have no impact on a decision
maker.
o
Can be compared with similar information
about an enterprise at other points in time.
Question 12
Which
assumption or principle requires that all information significant enough to
affect decisions of reasonably informed users should be reported in the
financial statements?
o
Full disclosure.
o
Matching.
o
Going concern.
o
Historical cost.
Question 13
Which of the
following serves as the justification for the periodic recording of
depreciation expense?
o
Minimization of income tax liability.
o
Immediate recognition of an expense.
o
Systematic and rational allocation of
cost over the periods benefited.
o
Association of efforts (expense) with
accomplishments (revenue).
Question 14
Expensing the cost of copy paper when the paper is
acquired is an example
o
Conservatism.
o
Industry practices.
o
Materiality.
o
Expense recognition.
Question 15
Which of the
following relates to both relevance and faithful representation?
o
Neutrality
o
None of these
o
Predictive value
o
Materiality
USA 
India