Financial Accounting > QUESTIONS & ANSWERS > University of Washington, Tacoma ACCT 625ACCT 625 Ch01 TB ACCT 625 Ch01 TB . (All)

University of Washington, Tacoma ACCT 625ACCT 625 Ch01 TB ACCT 625 Ch01 TB .

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CHAPTER 1 MULTIPLE CHOICE 1. Charging off equipment that cost less than $20 would be an example of the application of: a. going concern b. cost c. matching d. materiality e. realization ANS: D... 2. The going concern assumption: a. is applicable to all financial statements b. primarily involves periodic income measurement c. allows for the statements to be prepared under generally accepted accounting principles d. requires that accounting procedures be the same from period to period e. none of the answers are correct ANS: C 3. Understating assets and revenues is justified based on: a. realization assumption b. matching c. consistency d. realization e. none of the answers are correct ANS: E 4. The assumption that enables us to prepare periodic statements between the time that a business commences operations and the time it goes out of business is: a. time period b. business entity c. historical cost d. transaction e. none of the answers are correct ANS: A 5. Valuing assets at their liquidation values is not consistent with: a. conservatism b. materiality c. going concern d. time period e. none of the answers are correct ANS: C 6. The business being separate and distinct from the owners is an integral part of the: a. time period assumption b. going concern assumption c. business entity assumption d. realization assumption e. none of the answers are correct ANS: C [Show More]

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