Test Bank for Intermediate Accounting 11
Edition ,Edited By Linus QUESTION AND
CORRECT ANSWER WITH VERIFIED
SOLUTION.
d - ANSWER: Charging off equipment that cost less than $20 would be an
example of the application of:
...
Test Bank for Intermediate Accounting 11
Edition ,Edited By Linus QUESTION AND
CORRECT ANSWER WITH VERIFIED
SOLUTION.
d - ANSWER: 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
c - ANSWER: (QUIZ) 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
e - ANSWER: Understating assets and revenues is justified based on:
a. realization assumption
b. matching
c. consistency
d. realization
e. none of the answers are correct
a - ANSWER: 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
c - ANSWER: 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
c - ANSWER: 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
e - ANSWER: The principle that assumes the reader of the financial statements is
not interested in the liquidation values is:
a. conservatism
b. matching
c. time period
d. realization
e. none of the answers are correct
c - ANSWER: An accounting period that ends when operations are at a low ebb is:
a. a calendar year
b. a fiscal year
c. the natural business year
d. an operating year
e. none of the answers are correct
a - ANSWER: The accounting principle that assumes that inflation will not take
place or will be immaterial is:
a. monetary unit
b. historical cost
c. realization
d. going concern
e. none of the answers are correct
d - ANSWER: Valuing inventory at the lower of cost or market is an application of
the:
a. time period assumption
b. realization principle
c. going concern principle
d. conservatism principle
e. none of the answers are correct
d - ANSWER: The realization principle leads accountants to usually recognize
revenue at:
a. the end of production
b. during production
c. the receipt of cash
d. the point of sale
e. none of the answers are correct
d - ANSWER: The comment that "items that are not material may be recorded in
the financial statements in the most economical and expedient manner possible" is
representative of:
a. matching
b. conservatism
c. realization
d. materiality
e. none of the answers are correct
a - ANSWER: The assumption that deals with when to recognize the costs that are
associated with the revenue that is being recognized is:
a. matching
b. going concern
c. consistency
d. materiality
e. none of the answers are correct.
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