Historical cost is an accounting principle that says what a company owns is originally recorded at which of the following

Question 1Historical cost is an accounting principle that says what a company owns is originally recorded at which of the following

 

Answers:            

 

A. Appraised value

 

B. Purchase cost

 

C. Insured value

 

D. Market value

 

Question 2Generally accepted accounting principles include

 

Answers:            

 

A. Revenue recognition

 

B. Matching revenues and expenses

 

C. Historical cost

 

D. Full disclosure

 

E. All of the above

 

Question 3Which of the following statements are correct

 

Answers:            

 

A. Revenues are top line

 

B. Profits are bottom line

 

C. Both A and B

 

D. Costs are the same as expenses

 

Question 4The finance department has responsibility for which of the following

 

Answers:            

 

A. Treasury function

 

B. Insurance and risk management

 

C. Mergers and acquisitions

 

D. All of the above

 

Question 5Cash appears on which of the following financial statements

 

Answers:            

 

A. Statement of cash flows

 

B. Balance sheet

 

C. Both A and B

 

D. Income statement

 

Question 6The matching principle means which of the following

 

Answers:            

 

A. Record cash as revenue when received

 

B. Record costs associated with producing revenue at the same time

 

C. Applies to accrual accounting

 

D. Both B and C

 

Question 7Which of the following issues domestic Generally Accepted Accounting Principles

 

Answers:            

 

A. IFRS

 

B. SEC

 

C. NASDAQ

 

D. FASB

 

Question 8Solvency is the same as profitability

 

True

 

False

 

Question 9Finance is responsible for which of the following

 

Answers:            

 

A. Internal control

 

B. Collecting data for financial reporting

 

C. Financial information used by other departments

 

D. All of the above

 

Question 10Which is a correct statement under the accrual method of accounting?

 

Answers:            

 

A. A company recognizes revenue when it receives cash

 

B. A company recognizes expense when it pays cash

 

C. A company recognizes revenue when earned or it consummates a sale

 

D. A company matches cash received with cash paid