1. The group that attempts to create more harmony among the accounting practices of different countries is the: A. AICPA B. IASB. C. CAP. D. SEC. E. FASB. 2. The private group that currently has the authority to establish generally accepted accounting principles in the United States is the: A. APB B. FASB. C. AAA D. AICPA E. SEC. 3. 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: A. Going-concern assumption. B. Business entity assumption. C. Objectivity principle. D. Cost Principle. E. Monetary unit assumption. Page 1 4. If a parcel of land that was originally acquired 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 should be recorded in the purchaser's books at: A. $95,000. B. $137,000. C. $138,500. D. $140,000. E. S150,000. 5. The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets Liabilities + Equity, is known as the: A. Income statement equation. B. Accounting equation. C. Business equation. D. Return on equity ratio. E. Net income. 6. On June 30 of the current year, the assets and liabilities of Phoenix, Inc. are as follows: Cash $20,500; Accounts Receivable, $7.250; Supplies, $650: Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of June 30 of the current year? A. $8,300 B. $13,050 C. $20,500 D. $31,100