Reference no: EM131771239

Which entity in the United States is responsible for developing accounting rules?
Generally Accepted Accounting Principles
Financial Accounting Standards Board
Securities and Exchange Commission
International Accounting Standards Board

Management accounting serves business managers on what particular need?
Tax reports
Long-term liabilities
Budgets
Accounts receivable

Accounting transactions and events are usually recorded at. 
Historical cost
Market value
Salvage value
Market value

V. Davis, Inc. has $1,300 in accounts payable. This amount will appear on which of the companys financial statements?
Income statement
Retained earnings
Statement of cash flows
Balance sheet

A career example in private-sector accounting would be:
Budget officer
Controller
Tax auditor
Audit and assurance services

A balance sheet includes which of the following accounting items:
Capital deposits
Interest expense
Cost of goods sold
Accounts payable

A career example in public-sector accounting would be:
Audit and assurance services
Budget officer
Tax auditor
Controller

A career example in the federal government would be:
Business consulting
Chief accounting director
General accounting office
Internal auditor

Ethics is important in accounting because:
Millions of dollars are at stake when based on accounting reports
Professional organizations require accountants to be ethical
Everyone should strive to be ethical
Accounting is more important than management

A proprietorship is:
The principle that does not accept incomplete or bias data
Composed of accountants
The reason why accountants should not write up the value of equipment due to an increase in its fair value
An entity that has fewer than two owners

The goal of an accounting system is to do what?
Provide a repository for a managerâ€^TMs documents
Process transactions and events reliably
Transfer information to outside parties
Establish product development and marketing

The proper definition for the term "posting" is:
Copying data from the journal to the ledger
Side of an account where increases are recorded
Left side of an account
Always a liability

The proper definition for the term "ledger" is:
Always a liability
Left side of an account
Side of an account where increases are recorded
Book of accounts

When a company receives cash for services rendered, the company's total assets will:
Stay the same
Debit
Increases
Decrease

When a company purchases an asset for cash, the company's total assets will:
Credit
Increases
Decrease
Stay the same

The following is an example of a source document:
Number system
Sales receipt
Journal entry
General journal

The normal balance for liability accounts are:
Plus
Minus
Debit
Credit

The normal balance for revenue accounts are:
Minus
Plus
Credit

DebitThe normal balance for liability accounts are:
Plus
Minus
Debit
Credit

The normal balance for expense accounts are:

Debit
Minus
Credit
Plus

The normal balance for drawing accounts are:
Credit
Debit
Plus
Minus