Basic Accounting Principles MCQ

Which sentence concerning ABC's financial statements would be correct? ABC Co. has decided to use the straight line depreciation method in its financial statements and the MACRS method in its tax return.

Which of the following is a method of timing business transactions or choosing accounting principles so that the firm reports smaller variations in income from year to year than it would otherwise?

What change was made in regarding the penalization of the whistleblowers (people who alert the authorities about the illegal activities in a corporation) by the companies?

Which of the following courses of action should a firm take in order to minimize the present value of income tax payments?

What is the accounting objective which best relates to the completed contract method?

Which of the following must generally be used for financial reporting if it is used for income tax reporting?

What are forms 10K and 10Q referred to as?

In which years were the Securities & Exchange Acts created?

What is the accounting objective which best relates to the expensing the cost of employee stock options?

Which of the following methods would be employed to help accomplish the following objective: smoothing a firm's income as a means of minimizing large fluctuations in the price of its stock.

Which of the following is true of the Sarbanes Oxley Act?

Which of the following is used by the FASB in the selection of acceptable accounting principles?

What is the accounting objective which best relates to the weighted average inventory method?

For which of the following accounts would the use of 'the lower of cost or market price' principle be acceptable?

What kind of organization issuing securities would NOT have to register them with the SEC?

What entry would a donor make when giving a cash donation to a charity?

How is an unconditional promise to give a donation to a charity accounted for by the charity?

What is the accounting objective which best relates to the expensing of R&D costs?

How are gifts to a charity which are to be further passed on to a 3rd party accounted for while being held by the charity?

Which FASB sets the requirements for accounting for Non-Profit organizations?

Which of the financial accounting objectives listed below would seem to be closest to the objective of tax reporting?

Which of the following is a method of accounting for the exploration costs of a mineral resource that would best attain the objective of income tax accounting?

How should a firm compensating its employees by granting them the option to purchase its shares report it?

In which year was the Sarbanes Oxley Act passed?

How is a donated asset accounted by a non-profit organization based on its fair market value?

What is 'paying the least amount of taxes as late as possible within the law to minimize the present value of tax payments for a given set of operations' a description of?

What is the effect of the SOX on public companies?

What is the qualitative accounting objective suggesting that information reported in a financial statement should correspond as precisely as possible to the economic effects underlying transactions and events?

Which of the following statements would be incorrect in comparing the financial statements of two companies, XYZ and ABC which are identical in all respects except that XYZ uses FIFO and ABC uses LIFO in costing its inventories? Prices have been rising steadily over the last several years.

What is the acronym for the agency authorized by the U.S. Congress to regulate the financial reporting practices of most public corporations?

What was the purpose of the Sarbanes Oxley act, in general?

What is the accounting objective which best relates to the percentage of sales method for uncollectible accounts?

What is the acronym for an independent board responsible, since 1973, for establishing generally accepted accounting principles?

What is the accounting objective which best relates to the straight line method?

Which doctrine lays down that a firm should account for a given set of operations so as to make reported net income as large as possible?

What is the acronym for the organization that promotes international harmonization of accounting standards?

What is the accounting objective which best relates to the disclosing of the cost of employee stock options (not expensing)?

Which of the following methods is normally considered to be acceptable for financial reporting?

What statements are required of a Non-Profit organization?

What is Form 10-K?

What value should a contribution be accounted for at?

What new board was created as part of the Sarbanes Oxley Act?

What is the accounting objective which best relates to the capitalization of prepaid advertising costs?

What is the accounting objective which best relates to the Lower of Cost or Market Price method?

What is the accounting objective which best relates to the MACRS method?

What is form 10-Q?

What is the database created by the SEC for companies to file electronically?

What is the acronym for the independent board responsible, since 1973, for establishing generally accepted accounting principles?

For which of the following would the use of the straight-line method of amortization be acceptable?

What is the accounting objective which best relates to the FIFO method?

What is the acronym for an organization that promotes the international harmonization of accounting standards?

What is the purpose of a Registration Statement?

What is the accounting objective which best relates to the percentage of completion method?

How are third party adjustments to patient bills reflected in the financial statements?

Companies of what size have been impacted the most by the SOX from a cost perspective?

What is the reporting objective that calls for the anticipation of all losses incurred but defers the recognition of gains or profits until they are realized in arm's length transactions?

When is revenue normally recognized for financial reporting on accrual basis?

Which of the following is a valid criticism of the SOX?

What entry would a donor make when giving a cash donation to a charity, where the donor retains the right to revoke the contribution?

What are the 3 types of Health Care Organizations for accounting purposes?

Which of the following accounts may appear on a company's balance sheet when the incomes for financial and tax reporting are different?

What two filings are required when a company wishes to list its stock?

What is the acronym for the agency authorized by the U.S. Congress to regulate, among other things, the financial reporting practices of most public corporations?

What is the accounting objective which best relates to the LIFO method?

What change was made to the internal controls of the companies by the SOX?

Who can review the filings made by public companies with the SEC?

What is form 8-K?

What is the phrase with no agreement on meaning which implies to most analysts that earnings quality increase with the likelihood of recurrence?