What are the answers to these accounting questions?

bruce l

2010-02-12 09:57:37 UTC

An accounting information system communicates data to help businesses make better decisions.
True
False

Question 2 2 points Save
External auditors examine financial statements to verify that they are prepared according to generally accepted accounting principles.
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False

Question 3 2 points Save
External users include lenders, shareholders, customers, and regulators.
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False

Question 4 2 points Save
The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls.
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False

Question 5 2 points Save
A sole proprietorship is one or more individuals selling products or services for profit.
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False

Question 6 2 points Save
Accounting information is communicated to various parties through financial statements.
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False

Question 7 2 points Save
The business entity principle means that a business will continue operating for an indefinite period of time.
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False

Question 8 2 points Save
As a general rule, revenues should not be recognized in the accounting records until it is received in cash.
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False

Question 9 2 points Save
Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.
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False

Question 10 2 points Save
Objectivity means that financial information is supported by independent unbiased evidence.
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False

Question 11 2 points Save
The idea that a business will continue to operate until it can sell its assets to pay its creditors underlies the going-concern assumption.
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False

Question 12 2 points Save
The three common forms of business ownership include sole proprietorship, partnership, and non-profit.
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False

Question 13 2 points Save
Expenses decrease equity and are the costs of assets or services used to earn revenues.
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False

Question 14 2 points Save
Withdrawals by the owner are a business expense.
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False

Question 15 2 points Save
An account balance is the difference between the debits and credits for an account including any beginning balance.
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False

Question 16 2 points Save
In a double-entry accounting system, the total amount debited must always equal the total amount credited.
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False

Question 17 2 points Save
Debits increase asset and expense accounts.
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False

Question 18 2 points Save
A revenue account normally has a debit balance.
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False

Question 19 2 points Save
A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts.
True
False

Question 20 2 points Save
If insurance coverage for the next three years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.
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False

Question 21 2 points Save
If a company purchases land paying cash, the journal entry to record this transaction will include a debit to Cash.
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False

Question 22 2 points Save
When a company bills a customer for $600 for services rendered, the journal entry to record this transaction will include a $600 debit to Services Revenue.
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False

Question 23 2 points Save
The higher a company's debt ratio is, the higher the risk of a company not being able to meet its obligations.
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False

Question 24 2 points Save
Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.
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False

Question 25 2 points Save
A compound journal entry affects no more than two accounts.
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False

Question 26 2 points Save
A trial balance that balances is not proof of complete accuracy in recording transactions.
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False

Question 27 2 points Save
Ethics:
Are beliefs that separate right from wrong.
And law often coincide.
Help to prevent conflicts of interest.
Are critical in accounting.
All of these.

Question 28 2 points Save
If a parcel of land that was originally acquired for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land should be recorded in the purchaser's books at:
$9