12. Which of the following is an importance of accounting standards?

A. It helps in making financial reporting free from uncertainties.

B. It helps in projecting a loss-incurring company as a profit-making company.

C. It helps in evaluating the financial health and future prospects of an organization.

D. It helps in covering the material misstatements made unintentionally.

14. Kendra Jackson purchases 120 shares of Kingdom Corporation on May 30 for $36 per share. During July, Kingdom paid dividends of $4.00 per share. On October 19, Kendra is considering selling all of her shares, which are now selling for $40 per share. The value of Kendra's investment on October 19 is

A. $5,280

B. $4,320

C. $4,000

D. $5,000

19. Which of the following is a true statement?

A. U.S. GAAP enables decision makers to obtain information needed to reduce the risk of investment.

B. IFRS is used only by the countries with capitalist economy.

C. Changes to U.S. GAAP are made without proper changes.

D. U.S. GAAP is used only by governmental organizations.

23. In Year One, Double Design Corporation purchased equipment costing $5,000 for cash. Which of the following statements is true of this transaction?

A. The company's net asset will increase by $5,000.

B. The company's net asset would have decreased had the equipment been purchased on account.

C. The company will report a liability of $5,000.

D. The company's net asset will not change because of this transaction.

32. Which of the following would be considered as verbal explanation for Bullox Corporation?

A. Bullox has buildings worth $4,800,000

B. Bullox had sales last year of $15,699,000

C. Bullox owes James River Bank $800,000

D. Bullox owns 7,000 acres of land