acc 321 quiz
Name ________________ Section time _______________
ACC 321 – Quiz 1
PART I: Multiple choice, 3 points each. (Transfer your answers to the proper question on the answer sheet and fill in only one circle per question.)
1. Which of the following is NOT a major challenge facing the accounting profession?
a. Non-GAAP earnings. b. Fair value measurement. c. Accounting for fixed assets. d. Forward-looking information.
2. The objective of financial reporting places most emphasis on:
a. Providing information to individuals who are experts in the field. b. Reporting on stewardship. c. Providing specific guidance related to specific needs d. Reporting to capital providers
3. Which of the following statement(s) is TRUE?
I. Assets are obligations to transfer resources arising from a past transaction.
II. Information that is a faithful representation is characterized as having predictive or confirmatory value.
III. Under the economic entity assumption, the current-noncurrent classification of assets and liabilities is justifiable.
a. I and II
b. I only
c. III only
d. None of the above
4. Which of the following statement(s) regarding IFRS versus U.S. GAAP is TRUE?
I. IFRS is developed by the FASB.
II. The conceptual framework is very different for IFRS and U.S. GAAP.
III. IFRS is more principle-based than U.S. GAAP.
a. I and III
b. II only
c. III only
d. None of the above
5. Maso Company recorded journal entries for the issuance of common stock for $160,000, the payment of $52,000 on accounts payable, and the payment of salaries expense of $84,000. What net effect do these entries have on shareholders’ equity?
a. Increase of $160,000. b. Increase of $108,000. c. Increase of $76,000. d. Increase of $24,000.
c $160,000 - $84,000 = $76,000. 6. According to the FASB conceptual framework, which of the following elements describes transactions or
ACC 321 – Quiz 1
PART I: Multiple choice, 3 points each. (Transfer your answers to the proper question on the answer sheet and fill in only one circle per question.)
1. Which of the following is NOT a major challenge facing the accounting profession?
a. Non-GAAP earnings. b. Fair value measurement. c. Accounting for fixed assets. d. Forward-looking information.
2. The objective of financial reporting places most emphasis on:
a. Providing information to individuals who are experts in the field. b. Reporting on stewardship. c. Providing specific guidance related to specific needs d. Reporting to capital providers
3. Which of the following statement(s) is TRUE?
I. Assets are obligations to transfer resources arising from a past transaction.
II. Information that is a faithful representation is characterized as having predictive or confirmatory value.
III. Under the economic entity assumption, the current-noncurrent classification of assets and liabilities is justifiable.
a. I and II
b. I only
c. III only
d. None of the above
4. Which of the following statement(s) regarding IFRS versus U.S. GAAP is TRUE?
I. IFRS is developed by the FASB.
II. The conceptual framework is very different for IFRS and U.S. GAAP.
III. IFRS is more principle-based than U.S. GAAP.
a. I and III
b. II only
c. III only
d. None of the above
5. Maso Company recorded journal entries for the issuance of common stock for $160,000, the payment of $52,000 on accounts payable, and the payment of salaries expense of $84,000. What net effect do these entries have on shareholders’ equity?
a. Increase of $160,000. b. Increase of $108,000. c. Increase of $76,000. d. Increase of $24,000.
c $160,000 - $84,000 = $76,000. 6. According to the FASB conceptual framework, which of the following elements describes transactions or