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Accounting: Concepts and Applications, 11th Edition Test Bank

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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 1 preview imageChapter 1—Accounting Information: Users and UsesMULTIPLE CHOICE1.Which of the following is NOT typically true of accounting information?a.The information is quantitative in nature.b.The information relates to future time periods.c.The information relates to specific accounting entities.d.The information is primarily financial in nature.ANS:BPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement2.Which of the following is true about the double-entry system of bookkeeping?a.It was developed in the 1300s−1400s in France.b.It was developed in the 1800s in Italy.c.It was developed in the 1300s−1400s in Italy.d.It was developed in the 1800s in the United States.ANS:CPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement3.Businesses use accounting systems toa.Analyze transactionsb.Handle routine bookkeeping tasksc.Evaluate the performance and health of the businessd.All of these are correctANS:DPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement4.Which of the following is the most correct definition of accounting?a.A system for providing quantitative information, primarily financial in nature, abouteconomic entities that is intended to be useful in making economic decisions.b.An entity without a profit objective, oriented toward providing services efficiently andeffectively.c.The preservation of a systematic, quantitative record of an activity.d.The procedures and processes used by a company to analyze transactions and handleroutine bookkeeping tasks.ANS:APTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement5.Which of the following is NOT a function of accounting?a.Accumulating economic information about organizationsb.Measuring economic information about organizationsc.Executing sales transactions for organizationsd.Communicating economic information about organizationsANS:CPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 2 preview image
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 3 preview image6.Which of the following is NOT a key component of the definition of accounting?a.Financialb.Qualitativec.Usefuld.Decision-orientedANS:BPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement7.Which of the following is NOT a step in the decision making process?a.Identify the issue.b.Identify alternatives.c.Select the option that will result in the greatest financial increase.d.Gather information.ANS:CPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Decision Modeling8.Accounting can be best described as aa.Manufacturing activityb.Service activityc.Retailing activityd.All of these are correctANS:BPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement9.Which of the following is NOT a typical source of monetary resources for a business enterprise?a.Investorsb.Creditorsc.Business earningsd.EmployeesANS:DPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement10.Accountants typically perform what action related to the financial results of business activities?a.Report the results of business activitiesb.Advise on how to structure business activitiesc.Both report the results of and advise on how to structure business activitiesd.None of these are correctANS:CPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Reporting11.The accounting cycle includes all of the following, EXCEPT:a.Recordingb.Summarizingc.Analyzingd.InterpretingANS:DPTS:1DIF:EasyOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 4 preview image12.The emphasis in financial accounting is on which of the following external user groups?a.Managementb.Certified public accountantsc.Investors and creditorsd.EducatorsANS:CPTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting13.The primary internal group that uses accounting information isa.Government agenciesb.Investorsc.Managementd.CompetitorsANS:CPTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting14.Internal reports are generally used bya.Managementb.Suppliersc.Lendersd.EmployeesANS:APTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting15.Which of the following is NOT an important aspect of management accounting?a.Planningb.Product designc.Implementing plansd.Controlling costsANS:BPTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting16.The area of accounting that is concerned with providing information for external users is referred to asa.Financial accountingb.Governmental accountingc.Management accountingd.Not-for-profit accountingANS:APTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting17.Which of the following is NOT one of the three primary financial statements?a.Statement of cash flowsb.Income statementc.Statement of retained earningsd.Balance sheetANS:CPTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 5 preview image18.Which of the following financial statements reports a company's resources, obligations, and owner'sequity?a.Balance sheetb.Income statementc.Statement of retained earningsd.Statement of cash flowsANS:APTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting19.Which of the following financial statements reports the excess of a company's revenues over itsexpenses?a.Balance sheetb.Income statementc.Statement of retained earningsd.Statement of cash flowsANS:BPTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting20.Which of the following financial statements reports the amount of cash collected and paid out by acompany?a.Balance sheetb.Income statementc.Statement of retained earningsd.Statement of cash flowsANS:DPTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting21.Which of the following is NOT an external user of financial information?a.Competitorsb.Employeesc.Managementd.SuppliersANS:CPTS:1DIF:EasyOBJ:1.2NAT: AACSB Reflective Thinking | AICPA FN Reporting22.Which of the following is NOT one of the factors that influences the accounting environment?a.International businessb.Technologyc.The development of generally accepted accounting principles (GAAP)d.InvestorsANS:DPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA FN Reporting
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 6 preview image23.Which of the following is NOT true of the Financial Accounting Standards Board (FASB)?a.It consists of five full-time membersb.It is a government agencyc.It seeks consistency for its proposed standardsd.It has no legal power to enforce the standards it setsANS:BPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA FN Reporting24.Generally accepted accounting principles area.Natural lawsb.Based on scientific proofsc.Developed by accounting rule makersd.None of these are correctANS:CPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA FN Reporting25.The initials GAAP stand fora.General Accounting Administration Practicesb.Generally Applied Accounting Proceduresc.Generally Accepted Accounting Principlesd.Generally Accepted Accounting PracticesANS:CPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA FN Reporting26.The current standard-setting board for accounting in the private sector is thea.Financial Accounting Standards Board (FASB)b.Securities and Exchange Commission (SEC)c.International Accounting Standards Board (IASB)d.American Accounting Association (AAA)ANS:APTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Legal27.Which of the following organizations has specific legal authority to establish accounting standards forpublicly held companies?a.Financial Accounting Standards Board (FASB)b.Securities and Exchange Commission (SEC)c.Internal Revenue Service (IRS)d.American Institute of Certified Public Accountants (AICPA)ANS:BPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Legal28.The Sarbanes-Oxley Act created thea.Financial Accounting Standards Boardb.Public Company Accounting Oversight Boardc.American Institute of Certified Public Accountantsd.Enron-WorldCom Fraud CommitteeANS:BPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Legal
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 7 preview image29.The initials CPA stand fora.Certified Professional Appraiserb.Certified Professional Accountantc.Certified Public Accountantd.Certified Public AuditorANS:CPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Legal30.Which of the following is NOT a service typically provided by large public accounting firms?a.Performing auditsb.Making management decisionsc.Redesigning operating proceduresd.Establishing accounting systemsANS:BPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA FN Reporting31.Which of the following is the government agency that stipulates the rules and regulations that governthe collection of taxes in the United States?a.Securities and Exchange Commissionb.Federal Accounting Standards Boardc.Internal Revenue Serviced.American Institute of Certified Public AccountantsANS:CPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Legal32.Accountants are MOST concerned witha.Foreign companies operating in the USb.U.S. companies with domestic customersc.U.S. companies with foreign customersd.All of these are correctANS:DPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Global33.The organization that develops worldwide accounting standards is thea.International Committee on Accounting Standards (ICAS)b.International Accounting Standards Board (IASB)c.International Board of Accounting Standards (IBAS)d.International Accounting Standards Committee (IASC)ANS:BPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Global34.Standards established by the International Accounting Standards Board are referred to asa.Generally Accepted Accounting Standardsb.International Auditing Standardsc.International Financial Reporting Standardsd.International Financial Accounting StandardsANS:CPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Global
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 8 preview image35.In 2008, the SEC began toa.Allow U.S. companies trading on the U.S. stock exchange to issue their financial reportsusing IASB standardsb.Require U.S. companies trading on the U.S. stock exchange to issue their financial reportsusing IASB standardsc.Require non-U.S. companies trading on the U.S. stock exchange to issue their financialreports using IASB standardsd.Allow non-U.S. companies trading on the U.S. stock exchange to issue their financialreports using IASB standardsANS:DPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA BB Global36.Ethics are especially important in accounting becausea.Independent accountants represent the public interestb.Accountants can steal money more easily than other employeesc.Accountants have historically committed more company thefts than other employeesd.The accounting profession does not have a code of professional conductANS:APTS:1DIF:EasyOBJ:1.3NAT: AACSB Ethics | AICPA FN Reporting37.Which of the following is NOT one of the ways that technology has changed the way accounting isdone?a.Technology easily allows companies to collect large amounts of data about transactionsb.Technology allows greater access to a company's financial statements and other financialinformationc.Technology is able to perform the mechanics of accounting therefore, people are notrequired to understand the mechanicsd.Technology allows for large amounts of data to be compiled quickly and accuratelyANS:CPTS:1DIF:EasyOBJ:1.3NAT: AACSB Reflective Thinking | AICPA FN Measurement38.Which of the following is a reason that you may need to understand accounting information in thefuture?a.To evaluate an employer's short and long-term potentialb.To perform a personal budgetc.To perform responsibilities in future employmentd.All of these are reasons to study accountingANS:DPTS:1DIF:EasyOBJ:1.4NAT: AACSB Reflective Thinking | AICPA FN Measurement
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 9 preview imagePROBLEM1.Identify and describe the functions of an accounting system.ANS:The functions of an accounting system are analysis, bookkeeping, and evaluation. Analysis involvesanalyzing business transactions to determine what information should be captured by the accountingsystem. Bookkeeping is tracking activities on a day-to-day basis. Evaluation uses summaryinformation to evaluate the financial health and performance of a business.PTS:1DIF:MediumOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Reporting2.The definition of accounting is a system for providing "quantitative information, primarily financial innature, about economic entities that is intended to be useful in making economic decisions." List andexplain the key components of this definition.ANS:QuantitativeAccounting relates to numbers.FinancialThe health and performance of a company are affected and reflected in manydimensions but accounting focuses only on the financial aspect.UsefulAccounting exists only because it is useful.DecisionsAccounting is only useful as the past information can be used to impact futuredecisions.PTS:1DIF:MediumOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Measurement3.List the four steps in the decision making process.ANS:1.Identify the issue.2.Gather information.3.Identify alternatives.4.Select the option that will most likely result in the desired objective.PTS:1DIF:MediumOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Decision Modeling
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 10 preview image4.Identify the three primary financial statements and discuss the content of each.ANS:The balance sheet reports the assets, liabilities, and owners' equity of a business.The income statement reports the net income or net loss of a company, which represents the differencebetween revenues and expenses.The statement of cash flows reports the cash inflows and outflows from operating, investing, andfinancing activities.PTS:1DIF:MediumOBJ:1.1NAT: AACSB Reflective Thinking | AICPA FN Reporting5.List six users of accounting information and indicate whether they are an internal or an external user.ANS:ManagementinternalCreditors (Lenders)externalInvestorsexternalSuppliersexternalCustomersexternalEmployeesexternalCompetitorsexternalGovernment agenciesexternalThe pressexternalPTS:1DIF:MediumOBJ:1.2NAT: AACSB Analytic | AICPA FN Reporting6.Lenders, investors, and management are three potential users of external financial statements. Discusshow the information found in external financial statements can benefit each of these external users.ANS:Lenders want to be repaid. External financial statements help lenders predict the future ability of theborrower to repay the loan.Investors want to be able to estimate how much cash they will receive in the future if they invest in acompany now. Financial statements, along with knowledge of business plans, market forecasts, andcharacter of management, can help investors to assess future cash flows.Management can use the information found in external financial statements to state goals, calculatemanagement bonuses, and analyze the company in order to pinpoint weaknesses.PTS:1DIF:MediumOBJ:1.2NAT: AACSB Analytic | AICPA FN Reporting
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 11 preview image7.Describe the major difference between internal reports and external reports.ANS:Internal reports are dynamic and created to meet the needs of management. These reports may varygreatly among companies.External reports generally consist of general-purpose financial statements and must follow certainstandards or guidelines. These reports are more uniform among companies.PTS:1DIF:MediumOBJ:1.2NAT: AACSB Analytic | AICPA FN Reporting8.It is often said that companies must keep two sets of books. Isn't this dishonest? Explain.ANS:No, it is not dishonest. Companies are subject to both the rules governing financial accounting andthose governing tax accounting. One set of books must be maintained according to GAAP from whichthe company's financial statements are prepared. The other set of books is maintained in compliancewith income tax regulations, from which the company's tax return is prepared.PTS:1DIF:MediumOBJ:1.3NAT: AACSB Analytic | AICPA FN Reporting9.FASB, GAAP, SEC, CPA, AICPA, IRS, IASB, IFRS are all acronyms used in accounting. For thepreceding list of acronyms, state what the acronym stands for and then give a definition of eachacronym.ANS:FASB:Financial Accounting Standards Board. The private organization responsible forestablishing the standards for financial accounting and reporting in the UnitedStates.GAAP:Generally Accepted Accounting Principles. Authoritative guidelines that defineaccounting practice at a particular time.SEC:Securities and Exchange Commission. The government body responsible forregulating the financial reporting practices of most publicly owned corporations inconnection with the buying and selling of stocks and bonds.CPA:Certified Public Accountant. A special designation given to an accountant who haspassed a national uniform examination and has met other certifying requirements.AICPA:American Institute of Certified Public Accountants. The national organization ofCPAs in the United States.IRS:Internal Revenue Service. A government agency that prescribes the rules andregulations that govern the collection of tax revenues in the United States.IASB:International Accounting Standards Board. The committee formed in 1973 todevelop worldwide accounting standards.IFRS:International Financial Reporting Standards. The accounting standards produced bythe IASB and envisioned to be a set of standards that can be used by all companiesregardless of where the company is based.PTS:1DIF:MediumOBJ:1.3NAT: AACSB Reflective Thinking | AICPA FN Reporting
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 12 preview imageChapter 2—Financial Statements: An OverviewMULTIPLE CHOICE1.The financial statement that reports resources owned, the obligations to transfer resources to otherorganizations, and the claims by the entity's owners is known as thea.Income statementb.Statement of retained earningsc.Balance sheetd.Statement of cash flowsANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement2.Another name for the balance sheet is thea.Statement of cash flowsb.Statement of earningsc.Statement of financial positiond.Retained earnings statementANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement3.Which of the following types of accounts are NOT found on the balance sheet?a.Revenuesb.Assetsc.Liabilitiesd.Owners' equityANS:APTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement4.Economic resources that are owned or controlled by an enterprise are calleda.Assetsb.Liabilitiesc.Revenuesd.GainsANS:APTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement5.Which of the following is generally considered to be an asset?a.Notes payableb.Mortgage payablec.Accounts receivabled.Unearned revenueANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 13 preview image6.Which of the following accounts is NOT an asset account?a.Equipmentb.Accounts Receivablec.Accounts Payabled.SuppliesANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement7.Which of the following generally is NOT considered to be a liability?a.Notes payableb.Taxes payablec.Inventoryd.Accounts payableANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement8.An enterprise's obligations to pay cash or other economic resources to others are calleda.Liabilitiesb.Expensesc.Lossesd.AssetsANS:APTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement9.Which of the following is generally considered to be a liability?a.Accounts receivableb.Capital stockc.Notes payabled.Retained earningsANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement10.Which of the following types of accounts show how resources came into a firm?a.Liabilitiesb.Owners' equityc.Assetsd.Both liabilities and owners' equityANS:DPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement11.A business owned by one person is called aa.Nonprofit organizationb.Partnershipc.Corporationd.Sole proprietorshipANS:DPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 14 preview image12.A business owned by two or more individuals or entities is called a(n)a.Nonprofit organizationb.Partnershipc.Institutiond.Sole proprietorshipANS:BPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement13.Owners of a corporation are referred to asa.Debtorsb.Partnersc.Stockholdersd.CreditorsANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement14.Distributions by a corporation to its stockholders are calleda.Dividendsb.Retained earningsc.Incomed.WithdrawalsANS:APTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement15.Which of the following usually is NOT considered to be an owners' equity account?a.Capital stockb.Retained earningsc.Inventoryd.All these are owners' equity accountsANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement16.The total amount invested to acquire an ownership interest in a corporation is calleda.Retained earningsb.Capital stockc.Net assetsd.Owners' equityANS:BPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement17.Net assets are equal toa.Total assets minus owners' equityb.Total assets minus net incomec.Total assets minus dividends paidd.Total assets minus total liabilitiesANS:DPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 15 preview image18.Which of the following decreases owners' equity?a.Additional investments in the company are made by the ownersb.Operations generate a lossc.Operations generate a profit that is retained in the companyd.None of these decreases owners' equityANS:BPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement19.The basic accounting equation isa.Assets = Liabilities + Owners' Equityb.Assets + Liabilities = Owners' Equityc.Assets + Owners' Equity = Liabilitiesd.Liabilities−Owners' Equity = AssetsANS:APTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement20.Which of the following is the reason that the accounting equation is true by definition?a.Liabilities are the source that funds the purchase of assetsb.Assets are the source that funds the purchase of liabilities and owner's equityc.Liabilities and owner's equity are the sources that fund the purchase of assetsd.None of these are true, the accounting equation is merely a coincidenceANS:CPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement21.The idea that an increase or decrease on one side of the accounting equation must be offset exactly byan increase or decrease on the other side of the accounting equation is calleda.Additive conceptb.Going concern assumptionc.Monetary measurement conceptd.Double-entry accountingANS:DPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement22.A transaction that causes an increase in an asset may also causea.A decrease in owners' equityb.An increase in another assetc.A decrease in a liabilityd.An increase in a liabilityANS:DPTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement23.If a corporation has total assets of $350,000, total liabilities of $150,000, and retained earnings of$100,000, what is the amount of capital stock?a.$150,000b.$0c.$100,000d.$250,000
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Accounting: Concepts and Applications, 11th Edition Test Bank - Page 16 preview imageANS:CCapital stock: $350,000−$150,000−$100,000 = $100,000PTS:1DIF:MediumOBJ:2.1NAT: AACSB Analytic | AICPA FN MeasurementExhibit 2-1The following data were taken from the records of Moss Corporation for the year ending December31, 2012:01/01/1212/31/12Assets$11,250?Liabilities8,580$10,365Owners' equity?6,46524.Refer to Exhibit 2-1. Given the above information, owners' equity on January 1, 2012 wasa.$19,830b.$2,670c.$885d.$7,695ANS:BOwners' equity: $11,250−$8,580 = $2,670PTS:1DIF:MediumOBJ:2.1NAT: AACSB Analytic | AICPA FN Measurement25.Refer to Exhibit 2-1. Given the above information, assets on December 31, 2012, werea.$16,830b.$5,025c.$18,060d.$11,250ANS:AAssets: $10,365 + $6,465 = $16,830PTS:1DIF:MediumOBJ:2.1NAT: AACSB Analytic | AICPA FN Measurement26.Current assets usually are listed on a balance sheet ina.Decreasing order of liquidityb.Increasing order of liquidityc.A random fashiond.Decreasing order of profitabilityANS:APTS:1DIF:EasyOBJ:2.1NAT: AACSB Reflective Thinking | AICPA FN Measurement
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