【正文】 36.$137,000 increaseD.s books is:Business entity principle.E.A.The objective value to external users.The cash equivalent value of what was given up or received.B.According to generally accepted accounting principles, a pany39。Is a legal organization separate from its owners.E.A.May only have two partners.Includes a general partner with unlimited liability.B.sl: C5Goingconcern principleC.126.Has the authority to impose its standards on panies.D.The International Accounting Standards Board (IASB)Business entity principle.E.A.Business entity principleGoingconcern principle.B.sl: C5Means that information can be based on what the preparer thinks is true.C.122.Are detailed rules used in reporting on business transactions and events.D.Generally accepted accounting principles:Realization principle.E.A.Revenue recognition principle.Objectivity principle.B.119.Are abbreviated as GAAP.D.Rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial condition and activities of a business:Cost Principle.E.A.Cost principle.Objectivity principle.B.slt: C5FASB.C.114.CAP.D.The mittee that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging their worldwide acceptance is the:Intended to make information in financial statements relevant, reliable, and parable.E.A.All of these.Is a business legally separate from its owners.B.sl: C5Common stock.C.110.Requires that all businesses conduct social audits.E.A.All of these.s reports.B.Ethical behavior requires:May also be a Certified Management Accountant.E.A.All of these.Certified Public Accountant.B.sy: C3Auditing.C.103.Tax accounting.D.Career opportunities in accounting include:sy: C2Purchasing.C.100.External auditing.D.The area of accounting aimed at serving the decision making needs of internal users is:Suppliers.E.A.To know what, when, and how much to produce.To provide financial statements to help external users analyze an organization39。97.Has closely linked accounting with consulting, planning, and other financial services.D.TechnologyHelps people make better decisions.E.A.94.93.92.91.90.89.88.Owner39。The balance sheet is based on the accounting equation.The first section of the ine statement reports cash from operations.The ine statement shows the financial position of a business on a specific date.The statement of cash flows shows the net effect of revenues and expenses for a reporting period.The ine statement is a financial statement that shows revenues earned and expenses incurred during a specified period of time.A balance sheet covers a period of time such as a month or year.An ine statement reports on investing and financing activities.s equity, and statement of cash flows.FALSETRUETRUETRUEt74.73.72.71.70.s investment in a business always creates an asset (cash), a liability (note payable), and owner39。FALSEsy67.66.65.64.The legitimate claims of a business39。s earnings activities.tsysyttsysysy54.53.52.51.Revenues are increases in equity from a pany39。Owner financing refers to resources contributed by creditors or lenders.Investing activities are the acquiring and selling of resources that an organization uses to acquire and sell its products or services.The three major activities of a business are recording, financing, and investing.Planning activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.TRUETRUE31.TRUEA limited liability pany offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.27.Understanding generally accepted accounting principles is not necessary to use and interpret financial statements.24.General accounting principles arise from longused accounting practice.21.The business entity principle means that a business is accounted for separately from other business entities, including its owner or owners.18.The Financial Accounting Standards Board is the private group that sets both broad and specific accounting principles.15.FALSEOwners of a corporation are called shareholders or stockholders.TRUE11.Identifying the proper ethical path is easy.FALSE8.TRUE6.Internal operating activities include research and development, distribution, and human resources.An accounting information system municates data to help businesses make better decisions. True / False Questions 1.TRUE2.TRUE4.External users include lenders, shareholders, customers, and regulators.Internal users include lenders, shareholders, brokers and managers.9.Good ethics are good business.12.In the partnership form of business, the owners are called stockholders.FALSE16.FALSE19.FALSE22.FALSE25FALSE28.The Securities and Exchange Commission (SEC) is the government group that establishes reporting requirements for panies that issue stock to the public.FALSEThe three major types of business activities are operating, financing, and investing.s ideas, goals, and actions.TRUE46.47.48.49.50.sytttFALSETRUEFALSETRUEFALSETRUEFALSETRUEs investments are gross increases in equity from a pany39。63.lttsysyFALSEs