1. Generally accepted accounting principles are A. income tax regulations of the Internal Revenue Service. B. standards that indicate how to report economic events. C. theories that are based on physical laws of the universe. D. principles that have been proven correct by academic researchers. 2. The Duality Principle requires that A. all financial data must be recorded at the time when the transaction occurs. B. all transaction occurred have at least two effects on the financial statements. C. all expenses incurred during generation of revenue must be matched properly. D. only transaction data that can be expressed in terms of money will be recorded. 3. The ACE Company has five plants nationwide that cost $100 million. The current market value of the plants is $500 million. The plants will be recorded and reported as assets at A. $100 million. B. $600 million. C. $400 million. D. $500 million. 4. Which of the following is not an advantage of the corporate form of business organization? A. Limited liability of stockholders. B. Transferability of ownership. C. Unlimited personal liability for stockholders. D. Unlimited life. 5. Internal users of accounting information include all of the following except A. company officers. B. investors. C. marketing managers. D. production supervisors.
1. Generally accepted accounting principles are A. income tax regulations of the Internal Revenue Service. B. standards that indicate how to report economic events. C. theories that are based on physical laws of the universe. D. principles that have been proven correct by academic researchers. 2. The Duality Principle requires that A. all financial data must be recorded at the time when the transaction occurs. B. all transaction occurred have at least two effects on the financial statements. C. all expenses incurred during generation of revenue must be matched properly. D. only transaction data that can be expressed in terms of money will be recorded. 3. The ACE Company has five plants nationwide that cost $100 million. The current market value of the plants is $500 million. The plants will be recorded and reported as assets at A. $100 million. B. $600 million. C. $400 million. D. $500 million. 4. Which of the following is not an advantage of the corporate form of business organization? A. Limited liability of stockholders. B. Transferability of ownership. C. Unlimited personal liability for stockholders. D. Unlimited life. 5. Internal users of accounting information include all of the following except A. company officers. B. investors. C. marketing managers. D. production supervisors.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 7MC
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