problem1: The cost of an asset and its fair market value are;
[A] Irrelevant when the asset is used by the business in its operations
[B] The same on the date of acquisition
[C] Never the same
[D] The same when the asset is sold
problem2: Communication of economic events is the part of the accounting process that involves;
[A] Preparing accounting reports.
[B] Recording and classifying information.
[C] Identifying economic events.
[D] Quantifying transactions into dollars and cents.
problem3: The left side of an account is
[A] The debit side
[B] The balance of the account
[D] A description of the account
problem4: An accountant has debited an asset account for $1,000 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?
[A] Credit and stockholders' equity account for $500.
[B] Debit and stockholders' equity account for $500.
[C] Credit an asset account for $500.
[D] Credit another liability account for $500.
problem5: Generally accepted accounting principles are;
[A] theories that are based on physical laws of the universe.
[B] principles that have been proven correct by academic researchers.
[C] income tax regulations of the Internal Revenue Service.
[D] standards that indicate how to report economic events.