extra and good luck 1. The standards and rules that are recognized as a general guide for financial reporting are called 4. generally accepted accounting standards. b. generally accepted accounting principles. e operating guidelines. d. standards of financial reporting. 2. If generally accepted accounting principles did not exist, a. comparability between companies' financial statements would be enhanced b. financial atatements of different companies would be presented more uniformly. c. each company would have to develop its own set of accounting practices d. social welfare would have greater potential of being maximized. 3. Determining the objectives of financial reporting requires answers to each of the following except a. who uses financial statement? b. what information do financial statement users need? c. how knowledgeable about accounting are financial statement users? d. how should financial information be recorded in the accounting records? 4. Which one of the following is not an objective of financial reporting according to the conceptual framework? a. To provide information that will increase the value of the company b. To provide information in assessing future cash flows c. To provide information that is useful for making investment and credit decisions d. To provide information that identifies economic resources, the claims to those resources, and the changes in those resources and claims Prtnrap. corpstock. Other Page 2 5. Which of the following is not a goal of financial reporting? To provide information that is useful to those making investment decisione to provide information that is useful to those making credit decisions c. To provide information that is useful in understanding everything about the company d. To provide information that identifies changes in resources and 6. Information that relates to a firm's solvency is used to assess the firm's ability to convert assets to cash b. pay its debts. c. collect its receivables on time. d. prepare income tax information 2. If accounting information has predictive value, it is useful in making predictions about future IRS audits. new accounting principles. c. foreign currency exchange rates d. the outcomes of past, present, and future events of a company. 8. The assumption that states that the activities of each company be kept separate from the activities of its owners and all other companies is the a. economic entity assumption. b.going concern assumption c. monetary unit assumption. d. time period assumption. 9. The going concern assumption assumes that the business a. will be liquidated in the near future. b. will be purchased by another business. c. is in a growth industry. d. will continue in operation long enough to carry out its existing objectives and commitments. 10. The revenue recognition principle dictates that revenue should be recognized in the accounting period in which it is a. collected b. earned. c. most likely to be collected. d. earned and collected. 1. A hybrid form of business organization with certain features like a corporation is a (n) a. limited liability partnership. b. limited liability company. c. "S" corporation. d. sub-chapter "S" corporation. Petrap Corpstock. Other Page 12A general partner in a partnership has unlimited liability for all partnership debts b. is always the general manager of the firm is the partner who lacks a specialization d is liable for partnership liabilities only to the extent of that partner's capital equity 13. The individual assets invested by a partner in a partnership a revert back to that partner if the partnership liquidates. b. determine that partner's share of net income or loss for the year c. are jointly owned by all partners d. determine the scope of authority of that partner. 14. Which of the following is not a principal characteristic of the partnership form of business organization? a. Mutual agency b. Association of individuals c. Limited liability d. Limited life 15. Which of the following statements about a partnership is correct? a. The personal assets of a partner are included in the partnership accounting records. b. A partnership is not required to file an information tax return. c. Each partner's share of income is taxable to the partnership d. A partnership represents an accounting entity for financial reporting purposes. 26. The largest companies in the United States are primarily organized a. limited partnerships. b. partnerships c. corporations d. proprietorships. 7. Which of the following statements is incorrect regarding partnership agreements? a. It may be referred to as the "articles of co-partnership." b. Oral agreements are preferable to written articles. c. It should specify the different relationships that are to exist among the partners. d. It should state procedures for submitting disputes to arbitration