1. value: 4 points Recording the items on the financial statements in dollars is: 1.Objectivity principle 2.Monetary unit principle 3.Revenue recognition principle 4.Going-concern principle 5.Cost principle 2. value: 4 points The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from customers in exchange for goods or services is called the: 1.Going-concern principle 2.Cost principle 3.Revenue recognition principle 4.Objectivity principle 5.Business entity principle 3. value: 4 points The income statement reports all of the following except: Revenues earned by a business Expenses incurred by a business Assets owned by a business Net income or loss earned by a business The time period over which the earnings occurred 4. value: 4 points A balance sheet lists: The types and amounts of the revenues and expenses of a business Only the information about what happened to retained earnings during a time period The types and amounts of assets, liabilities and equity of a business as of a specific date The cash inflows and outflows during the period The assets and liabilities of a company, but not the equity 5. value: 4 points Risk is: Net income divided by average total assets The reward for investment The uncertainty about the expected return that will be earned from an investment Unrelated to expected return Derived from the idea of getting something back from an investment 6. value: 4 points The private board that currently has the authority to establish U.S. generally accepted accounting principles is the: APB FASB AAA AICPA SEC 7. value: 4 points Fees earned (but not yet received in cash) by a business in exchange for services that it has provided appear on which of the following statements? Balance sheet Statement of Cash Received Statement of retained earnings Statement of cash flows Schedule of Accounts Receivable 8. value: 4 points The statement of cash flows reports information on: Revenue activities Expense activities Financing activities Equity activities Asset activities 9. value: 4 points A company's balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000 and accounts payable $17,000. What is the amount of equity? $17,000 $29,000 $71,000 $88,000 $105,000 10. value: 4 points U.S. government bonds are: High-risk and high-return investments Low-risk and low-return investments High-risk and low-return investments Low-risk and high-return investments High risk and no-return investments 11. value: 4 points Which of the following statements about the Cash account is true? Because most companies earn their fees in cash, the cash account is categorized as revenue For any given transaction Accounts Receivable and Cash can be used interchangeably because both accounts are measured in terms of cash The cash account includes the value of any medium of exchange that a bank accepts for deposit Both A and B are true statements Both B and C are true statements 12. value: 4 points A general journal is: A ledger in which amounts are posted from a balance column account Not required if T-accounts are used A complete record of each transaction in the place from which transaction amounts are posted to the ledger accounts Not necessary in electronic accounting systems A book of final entry because financial statements are prepared from it