need 1-15 answerd
Student 1. One purpose of generally accepted accounting principles is to make accounting information prepared b different companies more comparable. True False 2. The statement of financial position and the income statement are one and the same. True False 3. Financial accounting standards issued by the FASB are considered generally accepted accounting principles. True False 4. Financial statements may be prepared for A. One year B. Less than one year C. Either A or B D. Neither A or B. Financial statements can only be prepared on a monthly basis. The field of accounting may best be described as: 5. A. Recording the financial transactions of an economic entity. B. Developing information in conformity with generally accepted accounting principles. C. The art of interpreting, measuring, and describing economic activity. D. Developing the information required for the preparation of income tax returns. 6. The basic purpose of an audit is to: A. Assure financial statements are in conformity with GAAP. B. Provide as much useful information to decision makers as possible, regardless of cost. C. Record changes in the financial position of an organization by applying the concepts of double entry accounting. D. Meet an organization's need for accounting information as efficiently as possible. 7. Which financial statement is prepared as of a specific date? A. The balance sheet. B. The income statement. C. The statement of cash flows. D. All three of the above are for a period of time rather than at a specific date. 8. A business entity is regarded as separate from the personal activities of its owners whether it is a sole proprietorship, a partnership, or a corporation. True False 9. The going concern principle assumes that the business will continue indefinitely True False 10. Articulation between the financial statements menns that they relate closely to each other. True False 11. The accounting equation may be stated as "assets minus liabilities equals owners' equity." True False 12. The purchase of an asset such as office equipment, for cash will cause owners' equity to decrease. True False 13. Which of the following best describes liquidity? A. The ability to increase the value of retained earnings B. The ability to pay the debts of the company as they become due. C. Being able to buy everything the company requires for cash. D. Purchasing everything the company requires on credit. 14. Profitability may be defined as: A. The ability to pay the debts of the company as they fall due. B. The ability to increase retained carings. C. Distributing dividends D. Having excess cash 15. Owners' equity in a business decreases as a result of which of the following? A. Investments of cash by the owners. B. Profits from operating the business. C. Losses from unprofitable operation of the business D. Repaying a loan to a commercial bank
