【正文】 s of authoritative bodies.E.Cost principle.C.A.129.Has owners called shareholders.Goingconcern principle.B.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. What is the effect of the sale on the accounting equation for the seller?137. owner39。140.Are also called asset management.E.Purchase of land.D.ytRevenues.C.The difference between a pany39。Equity.E.A.154.Occurs when expenses exceed assets.E.A.ytNet ine.E.Withdrawal.C.A. investment is known.$700,000 $200,000 = $500,000167.Net Ine. equity, $30,000 increase.E. liabilities, $30,000 increase。The accounting equation.B.$20,500D.$700,000.C.Net Ine.162.A.$67,000.C.The costs of assets or services used.A.Objectivity principle.D.sytA.The same as revenue.E.Gross increases in equity from a pany39。 claims against assets.An example of an investing activity is:A.Borrowing money from a bank.D. owner39。 owner39。$137,000 decreaseE.slt: C5Is also called a sole proprietorship.B.Cost principleD.Cost principle.123.A.Realization principle.C.Monetary unit principle.115.A.Is controlled by the FASB.C.AACSB: Ethicsy: C4Auditors to invest in businesses they audit.C.sy: C3Career opportunities in accounting include:Marketing.D.Customers.The primary objective of financial accounting is:Identifies business activities.B.The statement of cash flows reports on cash flows separated into operating, investing, and financing activities over a period of time.Investing activities involve the buying and selling of assets such as land and equipment that are held for longterm use in the business.FALSEFALSEgy: A4Return on assets is useful to decision makers for evaluating management, analyzing and forecasting profits, and in planning activities.s equity (investment.)An external transaction is an exchange of value within an organization.FALSE59.55.A net loss occurs when revenues exceed expenses.FALSEThe three mon forms of business ownership include sole proprietorship, partnership, and nonprofit.FALSE26.TRUE20.14.Opportunities in accounting include auditing, consulting, market research, and tax planning.Accounting is an informationt system that identifies, records, and municates relevant, reliable, and parable formation about an organization39。TRUE7.13.TRUEFALSEThe Securities and Exchange Commission (SEC) is the private group that sets both broad and specific accounting standards.ve: C6TRUEs claim on assets.The accounting equation implies that: Assets + Liabilities = Equity.Owner39。TRUE69.TRUE76.syyFALSEFALSE95.In accounting is only available to large corporations.Managers.C.A.All of these.Certified Internal Auditor.D.That auditors39。AACSB: Ethicsy: C4A corporation:sy: C5AICPA.E.Business entity principle.C.s owner in the records and reports of the business would be in conflict with the:sl: C5Means that a business may not reorganize revenue until cash is received.E.Goingconcern principle.C.A.130.The cash paid only, even if something other than cash was given in the exchange.D.$85,000 increaseB. owner39。s equity increases $30,000。A.sy: C6All of these.Equals assets minus liabilities.D.Expenses.Assets minus liabilities.B.150.Expenses.E.A.sytResources owned or controlled by a panyD.If assets are $99,000 and liabilities are $32,000, then equity equals:syClaims on them can be shared between creditors and owners.E.Expenses.C. the liabilities, $200,000. What are the claims of the owners?A.168. liabilities, $30,000 decrease。 equity $30,000 decrease.Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?Accounts payable.B.On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500。The bookkeeping phase of accounting.D.Investment.161.A.Helps people make better decisionsD.sytIncrease equity.B.Business equation.D.151.Net ine.B.s Equity.E.A.l: C6142.Are the means organizations use to pay for resources.B.Assets decrease $55,000。Assets increase $52,000。 owner39。Business entity principle.E.According to generally accepted accounting principles, a pany39。Includes a general partner with unlimited liability.B.Has the authority to impose its standards on panies.D.Business entity principle122.A.Are abbreviated as GAAP.D.Cost principle.114.A.Common stock.C.A.May also be a Certified Management Accountant.E.sy: C3Career opportunities in accounting include:External auditing.D.To know what, when, and how much to produce.Technology94.90.The balance sheet is based on the accounting equation.The ine statement is a financial statement that shows revenues earned and expenses incurred during a specified period of time.FALSEt71.sy64.sysy53.Owner financing refers to resources contributed by creditors or lenders.TRUEA limited liability pany offers the limited liability of a partnership or proprietorship and the tax treatment of a corporation.General accounting principles arise from longused accounting practice.The Financial Accounting Standards Board is the private group that sets both broad and specific accounti