Midterm Exam

Select the Best Answer: Name (in Arabic): …………………………………….

1.Charging off equipment that cost less than $20 would be an example of the application of:

2.The going concern assumption:

3.Understating assets and revenues is justified based on:

4.The assumption that enables us to prepare periodic statements between the time that a business commences operations and the time it goes out of business is:

5.Valuing assets at their liquidation values is not consistent with:

6.The business being separate and distinct from the owners is an integral part of the:

7.The principle that assumes the reader of the financial statements is not interested in the liquidation values is:

8.An accounting period that ends when operations are at a low ebb is:

9.The accounting principle that assumes that inflation will not take place or will be immaterial is:

10. Valuing inventory at the lower of cost or market is an application of the:

11. The realization principle leads accountants to usually recognize revenue at:

12. The comment that “items that are not material may be recorded in the financial statements in the most economical and expedient manner possible” is representative of:

13. The assumption that deals with when to recognize the costs that are associated with the revenue that is being recognized is:

14. The most significant current source of generally accepted accounting principles is the:

15. All but one of the following statements indicates a difference between the Financial Accounting Standards Board (FASB) and prior approaches. Select the one that is not a difference.

16. At the end of the fiscal year, an adjusting entry is made that increases both interest expense and interest payable. This entry is an application for which accounting principle?

17. Who is responsible for the preparation and integrity of financial statements?

18. Which of the following is not an objective of the SEC's integrated disclosure system?

19. Which of the following is not a type of audit opinion?

20. Which of the following statements is not true?

21. In addition to the balance sheet, the income statement, and the statement of cash flows, a complete set of financial statements must include:

22. Which of the following statements is not correct concerning summary annual reports?

23. Which of the following would not be considered a subsequent event?

24. Which of these statements is not true?

25. Which of these statements is not true?

26. Which of the following is a type of audit opinion that a firm would usually prefer?

27. Which of the following is a permanent account?

28. Which of the following is a temporary account?

29. In terms of debits and credits, which of the following accounts have the same normal balances?

30. If liabilities total $70,000 and stockholders' equity totals $50,000, then total assets must be:

Good Luck