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The accounting concept that maintains that each organization or section of an organization

The accounting concept that maintains that each organization or section of an organization stands apart from other organizations and individuals is known as the:

A) reliability principle

B) going-concern assumption

C) entity assumption

D) monetary unit  assumption

72) The ________ assumption assumes that the organization will remain in operation long enough to use existing assets.

A) cost

B) stable monetary unit

C) entity

D) going-concern

73) The principle that states that assets acquired by the business should be recorded at their actual price is the:

A) objectivity assumption

B) stable monetary unit assumption

C) cost assumption

D) reliability assumption

74) The relevant measure of value of the assets of a company that is going out of business is its:

A) historical cost

B) recorded value

C) book value

D) Liquidation value

75) The CEO of a business owns a home and two automobiles. The company the CEO works for also owns automobiles and a home in a remote area used for strategic planning meetings by its executives. Which principle or assumption "draws a sharp boundary" around the possessions of the CEO and the assets of the business for which he works?

A) the entity assmption

B) the stable-monetary-unit assumption

C) the going-concern assumption

D) the objectivity assumption

76) Which of the following statements below is true?

A) The value of a dollar changes over time.

B) British accountants are required to record transactions in dollars.

C) The stable-monetary-unit assumption requires adjustments to the accounting records for the effects of inflation.

D) High inflation rates indicate a dollar's purchasing power is stable when compared with other currencies.

77) The stable-monetary-unit assumption is the basis for ignoring:

A) the possibility that the value of inventory might drop below its historical cost

B) fluctuations in the value of the Canadian dollar relative to foreign currencies

C) the effect of inflation in the accounting records

D) the difference between the appraised value and the actual cost when recording an asset at its historical cost

78) Cash spent to purchase a new building would appear on the cash flow statement as:

A) a financing activity

B) an operating activity

C) an investing activity

D) purchases of new equipment do not appear on a cash flow statement

79) Which financial statement is based on the accounting equation?

A) statement of retained earnings

B) income statement

C) cash flow statement

D) balance sheet

80) The main source of cash for a business stems from:

A) current assets

B) operating activities

C) financing activities

D) investing activities

 

Dec 24 2019 View more View Less

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