Managerial accounting provides information to $\_\_\_\_\_\_\_\_.$

A$)$ internal decision$-$makers

B$)$ outside investors and lenders

C$)$ creditors

D$)$ taxing authorities

$2.$ The field of accounting that focuses on providing information for external decision$-$makers is $\_\_\_\_\_\_\_\_.$

A$)$ managerial accounting

B$)$ financial accounting

C$)$ cost accounting

D$)$ nonmonetary accounting

$3.$ Which of the following organizations is responsible for the creation and governance of accounting standards in the United States?

A$)$ Financial Accounting Standards Board

B$)$ Institute of Management Accountants

C$)$ American Institute of Certified Public Accountants

D$)$ Securities and Exchange Commission

$4.$ GAAP refers to guidelines for accounting information in the United States. The acronym GAAP in this statement refers to $\_\_\_\_\_\_\_\_.$

A$)$ Globally Accepted Accounting Policies

B$)$ Government Approved Accounting Principles

C$)$ Generally Accredited Accounting Policies

D$)$ Generally Accepted Accounting Principles

$5.$ Which of the following statements regarding the primary objective of financial reporting is correct?

A$)$ The primary objective of financial reporting is to provide information useful for the acquisition of long$-$term assets.

B$)$ Information that is faithfully representative is complete, neutral, and free from error.

C$)$ Relevant information ensures that users of the information will make the correct decisions.

D$)$ To be useful, information must follow the Generally Accepted Accounting Principles which are created and governed by the Securities and Exchange Commission.

$6.$Which of the following is a characteristic of a corporation?

A$)$ Corporations are separate taxable entities.

B$)$ Lenders of a corporation do not have the right to claim the corporation's assets to satisfy their obligations.

C$)$ Corporations are subjected to less governmental regulation than other forms of businesses.

D$)$ Each stockholder has the authority to commit the corporation to a binding contract through his$/$her actions.

$7.$Which of the following statements is true of a sole proprietorship?

A$)$ A sole proprietorship joins two or more individuals as co$-$owners.

B$)$ The sole proprietor is personally liable for the liabilities of the business.

C$)$ A sole proprietorship is taxed separately from the owner.

D$)$ A sole proprietorship has to pay business income taxes.

$8.$ Which of the following statements is true of a sole proprietorship?

A$)$ A sole proprietorship joins two or more individuals as co$-$owners.

B$)$ The sole proprietor is personally liable for the liabilities of the business.

C$)$ A sole proprietorship is taxed separately from the owner.

D$)$ A sole proprietorship has to pay business income taxes.

$9.$ Beverly Dalton incorporated her CPA practice $5$ years ago. At that time, the corporation purchased land for $$40,000.$ The December $31$ of the current year, the market value of the land is $$85,000.$ On the balance sheet for December $31$ of the current year, the asset should be reported at $\_\_\_\_\_\_\_\_$ under U$.$S$.$ GAAP.

A$)$ $$45,000$

B$)$ $$125,000$

C$)$ $$40,000$

D$)$ $$85,000$

$10.$ As per the $\_\_\_\_\_\_\_\_,$ the entity will remain in operation for the foreseeable future.

A$)$ economic entity concept

B$)$ monetary unit assumption

C$)$ going concern assumption

D$)$ cost principle

$11,$ Lawton Corporation records business transactions in dollars and disregards changes in the value of a dollar over time. Which of the following accounting assumptions does this represent?

A$)$ economic entity assumption

B$)$ going concern assumption

C$)$ accounting period assumption

D$)$ monetary unit assumption

$12.$ Which of the following organizations requires publicly owned companies to be audited by independent accountants $($CPAs$)?$

A$)$ Securities and Exchange Commission $($SEC$)$

B$)$ Public Company Accounting Oversight Board $($PCAOB$)$

C$)$ Financial Accounting Standards Board $($FASB$)$

D$)$ American Institute of Certified Public Accountants $($AICPA$)$

$13.$Which of the following is the correct accounting equation?

A$)$ Assets $+$ Liabilities $=$ Equity

B$)$ Assets $=$ Liabilities $+$ Equity

C$)$ Assets $+$ Revenues $=$ Equity

D$)$ Assets $+$ Revenues $=$ Liabilities $+$ Expenses

$14.$ The equity of Alliance Company is $$100,000$ and the total liabilities are $$90,000.$ The total assets are $\_\_\_\_\_\_\_\_.$

A$)$ $$200,000$

B$)$ $$180,000$

C$)$ $$10,000$

D$)$ $$190,000$

$15.$ The economic resources of a business such as furniture, building, and land are its $\_\_\_\_\_\_\_\_.$

A$)$ liabilities

B$)$ revenues

C$)$ assets

D$)$ expenses

$16.$ Which of the following is NOT an asset?

A$)$ Cash

B$)$ Accounts Payable

C$)$ Accounts Receivable

D$)$ Land

$17.$ Which of the following is an asset?

A$)$ Accounts Payable

B$)$ Service Revenue

C$)$ Merchandise Inventory

D$)$ Advertising Expense

$18.$ A debt that a business owes is called $\_\_\_\_\_\_\_\_.$

A$)$ an asset

B$)$ a liability

C$)$ equity

D$)$ revenuef

$19.)\_\_\_\_\_\_\_\_$ is something the business owes to another business or individual.

A$)$ An asset

B$)$ A liability

C$)$ Equity

D$)$ Revenue