Which entity in the United States is responsible for developing accounting rules? _____

Generally Accepted Accounting Principles

Financial Accounting Standards Board

Securities and Exchange Commission

International Accounting Standards Board

Management accounting serves business managers on what particular need? _____

Tax reports

Long-term liabilities

Budgets

Accounts receivable

Accounting transactions and events are usually recorded at _______. _____

Historical cost

Market value

Salvage value

Market value

V. Davis, Inc. has $1,300 in accounts payable. This amount will appear on which of the companys financial statements? _____

Income statement

Retained earnings

Statement of cash flows

Balance sheet

A career example in private-sector accounting would be: _____

Budget officer

Controller

Tax auditor

Audit and assurance services

A balance sheet includes which of the following accounting items: _____

Capital deposits

Interest expense

Cost of goods sold

Accounts payable

A career example in public-sector accounting would be: _____

Audit and assurance services

Budget officer

Tax auditor

Controller

A career example in the federal government would be: _____

Business consulting

Chief accounting director

General accounting office

Internal auditor

Ethics is important in accounting because: _____

Millions of dollars are at stake when based on accounting reports

Professional organizations require accountants to be ethical

Everyone should strive to be ethical

Accounting is more important than management

A proprietorship is: _____

The principle that does not accept incomplete or bias data

Composed of accountants

The reason why accountants should not write up the value of equipment due to an increase in its fair value

An entity that has fewer than two owners

The goal of an accounting system is to do what? _____

Provide a repository for a managers documents

Process transactions and events reliably

Transfer information to outside parties

Establish product development and marketing

The proper definition for the term "posting" is: _____

Copying data from the journal to the ledger

Side of an account where increases are recorded

Left side of an account

Always a liability

The proper definition for the term "ledger" is: _____

Always a liability

Left side of an account

Side of an account where increases are recorded

Book of accounts

When a company receives cash for services rendered, the company's total assets will: _____

Stay the same

Debit

Increases

Decrease

When a company purchases an asset for cash, the company's total assets will: _____

Credit

Increases

Decrease

Stay the same

The following is an example of a source document: _____

Number system

Sales receipt

Journal entry

General journal

The normal balance for liability accounts are: _____

Plus

Minus

Debit

Credit

The normal balance for revenue accounts are: _____

Minus

Plus

Credit

DebitThe normal balance for liability accounts are: _____

Plus

Minus

Debit

Credit

The normal balance for expense accounts are: _____

Debit

Minus

Credit

Plus

The normal balance for drawing accounts are: _____

Credit

Debit

Plus

Minus