What are the answers to these accounting questions?

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.

True

False

Question 3 2 points Save

External users include lenders, shareholders, customers, and regulators.

True

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.

True

False

Question 5 2 points Save

A sole proprietorship is one or more individuals selling products or services for profit.

True

False

Question 6 2 points Save

Accounting information is communicated to various parties through financial statements.

True

False

Question 7 2 points Save

The business entity principle means that a business will continue operating for an indefinite period of time.

True

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.

True

False

Question 9 2 points Save

Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.

True

False

Question 10 2 points Save

Objectivity means that financial information is supported by independent unbiased evidence.

True

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.

True

False

Question 12 2 points Save

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

True

False

Question 13 2 points Save

Expenses decrease equity and are the costs of assets or services used to earn revenues.

True

False

Question 14 2 points Save

Withdrawals by the owner are a business expense.

True

False

Question 15 2 points Save

An account balance is the difference between the debits and credits for an account including any beginning balance.

True

False

Question 16 2 points Save

In a double-entry accounting system, the total amount debited must always equal the total amount credited.

True

False

Question 17 2 points Save

Debits increase asset and expense accounts.

True

False

Question 18 2 points Save

A revenue account normally has a debit balance.

True

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.

True

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.

True

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.

True

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.

True

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%.

True

False

Question 25 2 points Save

A compound journal entry affects no more than two accounts.

True

False

Question 26 2 points Save

A trial balance that balances is not proof of complete accuracy in recording transactions.

True

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

4 Answers

Relevance
  • Anonymous
    10 years ago
    Best Answer

    I don't have time to answer all of them, but here's a few:

    4.2 False

    8.2 False

    10.2 True

    14.2 False

    16.2 True

    18.2 False

  • 3 years ago

    did you comprehend which you would be able to go surfing to a suspended account it nevertheless says 'oops' yet you are able to ask and answer any questions - and who cares in case you get a contravention, with the aid of fact it fairly is already suspended !!

  • lissa
    Lv 4
    3 years ago

    Extremely curious about the answer to this question

  • 3 years ago

    Well, it depends..

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