Exam I Part II: Multiple Choice questions: 1. An accounting principle must receive substantial authoritative support to qualify as generally accepted. Among the organizations and agencies which have been influential in the development of generally accepted accounting principles, which of the following has provided the most influential leadership? Internal Revenue Service. National Association of Accountants. Financial Accounting Standards Board. New York Stock Exchange. 2. The nature of an asset is best described as: Something with physical form which is valued at cost in the accounting records. An economic resource owned by a business and expected to benefit future operations. An economic resource representing cash or the right to receive cash in the near future. Something owned by a business that has a ready market value. 3. Mike Rodgers, owner of Mike's Taco Barn, also owns a personal residence that cost $130,000, but has a market value of $250,000. During preparation of the financial statements for Mike's Taco Barn, the accounting principle most relevant to the presentation of Mike's home is: The concept of the business entity. The cost principle. The going-concern assumption. The objectivity principle. 4. At December 31, 1993, the accounting records of Darcy, Inc., contain the following items: Accounts Payable....$ 24,000 Accounts Receivable....$ 60,000 Land. ? Cash.. 54,000 Capital Stock......... 600,000 Equipment...... 180,000 Building...... 500,000 Retained Earnings........ ? Note Payable.. 250,000 If Retained Earnings at December 31, 1993, are $300,000, total assets amount to: $900,000 $1,174,000. $354,000. $1,434,000