1. To determine proper GAAP treatment, someone should look for guidance in:

A. the Federal Accounting Registry.

B. Accounting Research Bulletins.

C. the Accounting Standards Codification.

D. Statements on Financial Accounting Standards.

2. Which SEC filing, made on an irregular basis, would be filed if the corporation terminated its CEO?

A. Proxy

B. 10-K

C. S-1

D. 8-K

3. During the period, revenue of $38,000 was collected and $30,000 was earned. Expenses of $12,000 were incurred but $8,400 was paid. What is the reported net income under GAAP?

A. 47,600

B. 29,600

C. 26,000

D. 18,000

4. An accountant chooses to recognize contingent losses in the period when they occur, but waits to recognize contingent gains until they actually materialize because of the concept of:

A. conservatism.

B. matching.

C. going concern.

D. timeliness.

5. A company with a low quality of earnings may be a bad investment because:

A. debt is likely very high creating significant interest expense.

B. the reported loss will put the company into bankruptcy.

C. reported net income may not be sustainable in the future.

D. management has acted in an unethical fashion.

6. An individual making ethical decisions by applying an ethical rule such as Do not steal would be using which type of ethical framework?

A. Deontological

B. Virtue

C. Utilitarian

D. COSO

7. Frost, Inc. sold inventory on account for $20,500. Frost previously purchased those goods for $16,400. The resulting entries would include:

A. a credit to Accounts receivable for $20,500.

B. a debit to Sales revenue for $20,500.

C. a debit to Cash for $20,500.

D. a debit to Cost of goods sold for $16,400.

8. Scrooge, Inc.s fiscal year end concludes on August 31st. The frugal owner pays his employee his wages ($275) on September 8th. The employee earned $120 before August 31st and the rest between September 1 and September 8th. The journal entry on September 8th would include:

A. a debit to Wages expense for $155.

B. a debit to Wages payable for $155.

C. a debit to Cash for $275.

D. a debit to Wages expense for $275.

9. At the beginning of December, Burrows, Corp. had an $8,000 debit balance in its Supplies account. During the month, Burrows purchased an additional $20,000 of supplies. At December 31st, $12,400 of supplies were on hand. What should Burrows report for Supplies expense for December?

A. 15,600

B. 20,000

C. 28,000

D. 12,400

10. A company reports a beginning Retained earnings balance of $20,000. During the year, new shares of common stock were issued for $12,000 and dividends of $4,000 were declared. The company recorded revenue of $42,000 and expenses of $19,000. Additionally, the company purchased land for $26,000. What is the final balance of Retained earnings?

A. 39,000

B. 51,000

C. 25,000

D. 13,000