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Accounting Questions?
Accounting Questions?
1.The communication of accounting information is accomplished by
a.Recording
b.Storing
c. Processing
d.Reporting
2.The convention of consistency refers to consistent use of accounting principles
a.among firms
b.among accounting periods
c.throughout the accounting period
d.within industries
3.To obtain a slightly more accurate measure of net income, ABC Inc. has determined it must hire 2 full time accountants. If it decides against the hiring, it has followed the convention of
a.consistency
b.cost benefit
c.conservatism
d.full disclosure
4.According to generally accepted accounting principles, is a change in accounting method allowed ONLY WHEN THE NEW METHOD IS DEEMED PREFERABLE?
5.an investment is classified as either short-term or long-term based on
a.The length of time the investor expects to hold it
b.the length of time it has been held
c.whether the investment can be sold immediately.(is it A?)
6.The normal operating cycle helps define the CURRENT ASSETS on the balance sheet section, right?
7.Franchise fees paid to Burget King to operate a restaurant franchise would appear in which belance sheet section?
a.Current asset
b.Investments
c.Property, plant, and equipment
d.Intangible assets
8. Interest Expense on a mortgage would be classified on a multi-step Income Statement under the heading
a. Other Revenues and Expenses
b.General and Administrative Expenses
c.Selling Expenses
d. Cost of Goods Sold
***(PLS give a little explaination, thx.)
Answers: