【正文】 arer thinks is true.C.Are detailed rules used in reporting on business transactions and events.D.Realization principle.E.Revenue recognition principle.119.Rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial condition and activities of a business:A.Objectivity principle.B.FASB.C.CAP.D.Intended to make information in financial statements relevant, reliable, and parable.E.All of these.sl: C5110.Requires that all businesses conduct social audits.E.All of these.Ethical behavior requires:A.Certified Public Accountant.B.Auditing.C.Tax accounting.D.sy: C2100.The area of accounting aimed at serving the decision making needs of internal users is:A.To provide financial statements to help external users analyze an organization39。Has closely linked accounting with consulting, planning, and other financial services.D.Helps people make better decisions.E.93.91.89.Owner39。The first section of the ine statement reports cash from operations.The statement of cash flows shows the net effect of revenues and expenses for a reporting period.A balance sheet covers a period of time such as a month or year.s equity, and statement of cash flows.TRUETRUE74.72.70.FALSE67.65.The legitimate claims of a business39。tsytsy54.52.Revenues are increases in equity from a pany39。Investing activities are the acquiring and selling of resources that an organization uses to acquire and sell its products or services.Planning activities are the means an organization uses to pay for resources like land, buildings, and equipment to carry out its plans.TRUETRUE27.24.21.18.15.Owners of a corporation are called shareholders or stockholders.Identifying the proper ethical path is easy.TRUE6.An accounting information system municates data to help businesses make better decisions.TRUE2.External users include lenders, shareholders, customers, and regulators.9.12.FALSEFALSEFALSEFALSEFALSEThe Securities and Exchange Commission (SEC) is the government group that establishes reporting requirements for panies that issue stock to the public.The three major types of business activities are operating, financing, and investing.TRUE46.48.50.ttTRUETRUETRUETRUE63.tsys equity is increased when cash is received from customers in payment of previously recorded accounts receivable.ttsys ability to generate profit using its assets.Generally the lower the risk, the lower the return that can be expected.The four basic financial statements include the balance sheet, ine statement, statement of owner39。81.83.85.87.yyyyCommunicates business activities.D.Has not changed the work that accountants do.C.To serve the decisionmaking needs of internal users.B.Internal users of accounting information include:99.sy: C2All of these.Management consulting.C.Budgeting.B.A.A Certified Public Accountant106.Managers to use accounting information to benefit themselves.E.Is required by the SEC.D.slt: C5All of these.Is the same as a limited liability partnership.E.Abbreviated as GAAP.D.FASB.C.APB.B.A.The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:117.sy: C5Goingconcern principle.E.Goingconcern principle.D.Are basic assumptions, concepts, and guidelines in preparing financial statements.C.Means that information is supported by independent, unbiased evidence.B.A.The question of when revenue should be recognized on the ine statement (according to GAAP) is addressed by the:125.sAICPA BB: Global: C5Revenue recognition principleIs the same as a corporation.E.Has to have a written agreement in order to be legal.D.A.Which of the following accounting principles would require that all goods and services purchased be recorded at cost?If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land account transaction amount to handle the sale of the land in the seller39。lt: C5 owner39。None of these$137,000 $85,000 = $52,000 liabilities decrease $30,000B. liabilities decrease $30,000D. liabilities decrease $30,000$137,000 $85,000 30,000 = 22,000Paying off a loan.Are the carrying out of an organization39。Involve using resources to research, develop, purchase, produce, distribute and market products and services.C.Operating.B.Paying wages of employees.B.A.145.Liabilities.D.A.148.sytRevenue.E.Expenses.C.Liabilities.B.The description of the relation between a pany39。sytTransaction principle.Are the costs of assets or services used to earn revenues.D.Is the same as revenue.C.A.157.All of these$131,000.E.Net assets.D.Equity.C.They are economic resources owned or controlled by the business.B.A.Distributions by a business to its owners are called:164.sy$200,000.E. Equipment, $12,000。$40,400$20,500 + $7,250 + $650 + $12,000 $9,300 = $31,100Expenses.E.A business transaction.D. liabilities, no effect。Assets, no effect。How would the accounting equation of Boston Company be affected by the billing of a