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PSU ACCTG 211 - CHAPTER 1 QUIZ

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CHAPTER 1 QUIZ ACCOUNTING 211 SPRING 211. Accounting is an information and measurement system that does all of the following except: A. Identifies business activities.B. Records business activities.C. Communicates business activities.D. Eliminates the need for interpreting financial data.E. Helps people make better decisions.2. External users of accounting information include all of the following except: A. Shareholders.B. Customers.C. Purchasing managers.D. Government regulators.E. Creditors.3. All of the following are true regarding ethics except: A. Ethics are beliefs that distinguish right from wrong.B. Ethics rules are often set for CPAs.C. Ethics do not directly affect the operations or outcome of a company.D. Are critical in accounting.E. Ethics can be difficult to apply.4. The private-sector group that currently has the authority to establish generally accepted accounting principles in the United States is the: A. APB.B. FASB.C. AAA.D. AICPA.E. SEC.5. If a company is considering the purchase of a parcel of land that was acquired by theseller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000,is recognized by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser’s books at: A. $95,000.B. $137,000.C. $138,500.D. $140,000.E. $150,000.6. If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year, then the change in equity of the company during the year must have been: A. An increase of $80,000.B. A decrease of $80,000.C. An increase of $30,000.D. A decrease of $30,000.E. An increase of $25,000.7. The income statement reports all of the following except: A. Revenues earned by a business.B. Expenses incurred by a business.C. Assets owned by a business.D. Net income or loss earned by a business.E. The time period over which the earnings occurred.8. A balance sheet lists: A. The types and amounts of the revenues and expenses of a business.B. Only the information about what happened to equity during a time period.C. The types and amounts of assets, liabilities, and equity of a business as of a specific date.D. The inflows and outflows of cash during the period.E. The assets and liabilities of a company but not the stockholders’ equity.9. Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets. A. 8.4%.B. 17.2%.C. 14.3%.D. 15.6%.E. 1.5%.10. A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. There were no stockholder investments or dividends during the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?A. $45,000.B. $92,000.C. $98,000.D. $210,000.E.


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