Accounting Chapters 1-2 – Flashcards

Profit is the difference between

Which of the following best describes accounting?

Which of the following groups are considered to be internal users of accounting information?

The following are examples of external users of accounting information except

Which of the following are guidelines for behaving ethically? I. Identify the consequences of a decision and its effect on others. II. Consider your obligations and responsibilities to those affected by the decision. III. Identify your decision based on personal standards of honesty and fairness.

Most businesses in the United States are

Which of the items below is not a business entity?

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

On May 20, White Repair Service extended an offer of $108,000 for land that had been priced for sale at $140,000. On May 30, White Repair Service accepted the seller's counteroffer of $115,000. On June 20, the land was assessed at a value of $95,000 for property tax purposes. On July 4, White Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in White Repair Service's records?

The initials GAAP stand for

Within the United States, the dominant body in the primary development of accounting principles is the

The business entity concept means that

Equipment with an estimated market value of $30,000 is offered for sale at $45,000. The equipment is acquired for $15,000 in cash and a note payable of $20,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is

Which one of the following is the authoritative body in the United States having the primary responsibility for developing accounting principles?

Many countries outside the United States use financial accounting standards issued by the