10. Which of the following statements best describes the relationship of U.S. GAAP and IFRS? (Points : 2) They are identical They are entirely different conceptual frameworks They are similar but not identical Neither has anything to do with accounting They both relate only to publicly traded companies 11. Generally Accepted Accounting Principles: (Points : 2) Focus on the review of a situation Does not require financial statements Never change Intend to make information on the financial statements relevant, reliable and comparable Oversees Security and Exchange Commission 12. Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include: (Points : 2) Assets increase by $75,000 and expenses increase by $75,000 Assets increase by $75,000 and expenses decrease by $75,000 Liabilities increase by $75,000 and expenses decrease by $75,000 Assets decrease by $75,000 and expenses decrease by $75,000 Assets increase by $75,000 and liabilities increase by $75,000 13. Fast-Forward had cash inflows from operations of $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was: (Points : 2) $40,500 increase $40,500 decrease $134,500 decrease $134,000 increase 14. A company has twice as much owner's equity as it does liabilities. If total liabilities are $50,000, what amounts of assets are owned by the company? (Points : 2) $50,000 $100,000 $150,000 $200,000 15. Which of the following elements are found on the Balance Sheet? (Points : 2) Service Revenue Net Income Operating Activities Utilities Expense Retained Earnings 16. Ethical behavior requires: (Points : 2) That an auditors' pay not depend on the figures in the client's reports Auditors to invest in businesses they audit Analysts to report information favorable to their companies Managers to use accounting information to benefit themselves That an auditor provides a favorable opinion 17. If Beginning Retained Earnings was $184,300, the company distributed $46,000 in dividends and Ending Retained Earnings was $345,000, what was the net income for the period? (Points : 2) $154,700 $206,700 $114,700 $575,300 $160,700 18. An example of an operating activity is: (Points : 2) Paying wages Purchasing office equipment Borrowing money from a bank Selling stock Paying off a loan 19. An asset created by prepayment of an expense is: (Points : 2) Recorded as a debit to an unearned revenue account Recorded as a debit to a prepaid expense account Recorded as a credit to an unearned revenue account Recorded as a credit to a prepaid expense account Not recorded in the accounting records until the earnings process is complete 20. Which accounting assumption assumes that all accounting information is reported monthly or yearly? (Points : 2) Business entity assumption Monetary unit assumption Value assumption Cost assumption Time period assumption