1.Which of the following was the first private sector entity that set accounting standards in the United States?
a.  Accounting Principles Board
b.  Committee on Acocounting Procedure
c  Financial Accounting Standards Board
d  AICPA

2.The enhancing qualitative characteristic of understandability means that information should be understood by
a  those who are experts int eh interpretation of financial information
b  those who have a reasonable understanding of business and economic activities
c  financial analysts
d  CPAs

3.XYZ Corporation recieves $100,000 from investors for issuing them shares of its stock.  XYZ's journal entry to record this transaction would include a
a  debit to investment
b  credit to retained earnings
c  credit to capital stock
d  credit to revenue

4.Cal Farms reported a supplies expense of $2,000,000 a year.  The supplies amount decreased by 200,000 during the year to an ending balance of $400,000.  What was the cost of supplies Cal Farm purchased during the year?
a  1,600,000
b  1,800,000
c  2,200,000
d  2,400,000

5.permanent accounts would not include
a  interest expense
b  wage payable
c  prepaid rent
d  unearned revenues