Acc100 Accounting: Week 2 Quiz 1 Chapter 1 (10 MCQs)

Acc100 Strayer Accounting 
Week 2 Quiz 1 Chapter 1Question 1 
Financial accounting provides economic and financial information for all of the following except 
other external users. 
managers. 
creditors. 
investors.Question 2 
The final step in solving an ethical dilemma is to 
identify the alternatives and weigh the impact of each alternative on stakeholders. 
recognize the ethical issues involved. 
identify and analyze the principal elements in the situation. 
recognize an ethical situationQuestion 3 
Generally accepted accounting principles are 
standards that indicate how to report economic events. 
principles that have been proven correct by academic researchers. 
theories that are based on physical laws of the universe. 
income tax regulations of the Internal Revenue Service.Question 4 
The private sector organization involved in developing accounting principles is the 
Feasible Accounting Standards Body. 
Financial Auditors' Standards Body. 
Financial Accounting Studies Board. 
Financial Accounting Standards Board.Question 5 
Which of the following is not a characteristic of the cost principle? 
Verifiability. 
Reliability. 
Objectivity. 
Subjectivity.Question 6 
The accounting equation for Gudgeyes Enterprises is as follows: 
Assets Liabilities Owner's Equity
$120,000 = $60,000 + $60,000If Gudgeyes purchases office equipment on account for $12,000, the accounting equation will change to 
Assets Liabilities Owner's Equity
$132,000 = $72,000 + $60,000
$132,000 = $60,000 + $72,000
$120,000 = $60,000 + $60,000
$132,000 = $66,000 + $66,000Question 7 
If supplies that have been purchased are used in the course of business, then 
owner's equity will increase. 
an asset will increase. 
a liability will increase. 
owner's equity will decrease.Question 8 
Net income results when 
Revenues = Expenses. 
Revenues Expenses. 
Revenues < Expenses. 
Assets LiabilitiesQuestion 9 
Metzger Company compiled the following financial information as of December 31, 2010: 
Revenues 140,000 
Metzger, Capital (1/1/10) 70,000 
Equipment 40,000 
Expenses 125,000 
Cash 35,000 
Metzger, Drawings 10,000 
Supplies 5,000 
Accounts payable 20,000 
Accounts receivable 15,000Metzger's assets on December 31, 2010 are 
$80,000. 
$95,000. 
$235,000. 
$170,000.Question 10 
Metzger Company compiled the following financial information as of December 31, 2010: 
Revenues 140,000 
Metzger, Capital (1/1/10) 70,000 
Equipment 40,000 
Expenses 125,000 
Cash 35,000 
Metzger, Drawings 10,000 
Supplies 5,000 
Accounts payable 20,000 
Accounts receivable 15,000Metzger's owner's equity on December 31, 2010 is 
$60,000. 
$75,000. 
$85,000. 
$70,000.
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