ACCT212 Financial Accounting
WEEK 1 CHECKPOINT
Question 1
(TCO 1) Accounting
measures business
activities.
processes data into
reports and communicates the data to decision makers.
is often called the
language of business.
All of the above
Question 2
(TCO 1) Decision makers who use accounting include
the SEC.
investors.
managers.
All of the above
Question 3
(TCO 1) The Financial Accounting Standards Board is
responsible for establishing
the code of
professional conduct for accountants.
the Securities and
Exchange Commission.
generally accepted
accounting principles.
international
accounting financial standards.
Question 4
(TCO 1) The accounting assumption that states that the
business, rather than its owners, is the reporting unit is the
entity assumption.
going concern
assumption.
stable-monetary-unit
assumption.
historical cost
assumption.
Question 5
(TCO 1) The accounting equation can be stated as
Assets +
Stockholders’ Equity = Liabilities.
Assets – Liabilities
= Stockholders’ Equity.
Assets = Liabilities
– Stockholders’ Equity.
Assets –
Stockholders’ Equity + Liabilities = Zero.
Question 6
(TCO 1) The owners’ equity of any business is its
revenues minus
expenses.
assets minus
liabilities.
assets plus
liabilities.
paid-in capital plus
assets.
Question 7
(TCO 1) Net income is computed as
revenues – expenses
– dividends.
revenues + expenses.
revenues – expenses.
revenues – expenses
+ dividends.
Question 8
(TCO 1) Which of the following would appear on the balance
sheet?
Assets and operating
cash flows
Dividends and
liabilities
Assets and
liabilities
Owners’ equity and
revenues
Question 9
(TCO 1) Which statement(s) summarizes the revenues, gains,
expenses, and losses of an entity?
Balance sheet
Statement of cash
flows and income statement
Statement of
retained earnings and statement of operations
Income statement
Question 10
(TCO 1) What is the proper order for the categories of the
statement of cash flows?
Financing
activities, investing activities, and operating activities
Operating
activities, investing activities, and financing activities
Operating
activities, financing activities, and investing activities
Investing
activities, financing activities, and operating activities