1、The term "inventory" indicates ()
A.merchandise held for sale in the normal course of business
B.materials in the process of production or held for production
C.supplies
D.both A and B
本题答案：
D
2、The primary purpose of a stock split is to ()
A.increase paid-in capital
B.reduce the market price of the stock per share
C.increase the market price of the stock per share
D.increase retained earnings
本题答案：
B
3、The ability of a business to pay its debts as they come due and to earn a reasonable amount of income is referred to as ()
A.solvency and leverage
B.solvency and profitability
C.solvency and liquidity
D.solvency and equity
本题答案：
B
4、For accounting purposes, the business entity should be considered separate from its owners if the entity is ()
A.a corporation
B.a proprietorship
C.a partnership
D.all of the above
本题答案：
D
5、The two most common specialized fields of accounting in practice are ()
A.forensic accounting and financial accounting
B.managerial accounting and financial accounting
C.managerial accounting and environmental accounting
D.financial accounting and tax accounting systems
本题答案：
B
6、The interest rate specified in the bond indenture is called the ()
A.discount rate
B.contract rate
C.market rate
D.effective rate
本题答案：
B
7、The excess of issue price over par of common stock is termed a(n) ()
A.discount
B.income
C.deficit
D.premium
本题答案：
D
8、Debts owed by a business are referred to as ()
A.accounts receivables
B.equities
C.owner’s equity
D.liabilities
本题答案：
D
9、A characteristic of a fixed asset is that it is ()
A.intangible
B.used in the operations of a business
C.held for sale in the ordinary course of the business
D.none of the above
本题答案：
B
10、Sinking Fund Cash would be classified on the balance sheet as ()
A.a current asset
B.a fixed asset
C.an intangible asset
D.an investment
本题答案：
D
11、The income statement is prepared from ()
A.the adjusted trial balance.
B.the income statement columns of the work sheet.
C.either the adjusted trial balance or the income statement columns of the work sheet.
D.both the adjusted trial balance and the income statement columns of the work sheet.
本题答案：
C
12、Financial statements in which financial data for two or more companies are combined as a single entity are called ()
A.conventional statements
B.consolidated statements
C.audited statements
D.constitutional statements
本题答案：
B
13、The interest rate specified in the bond indenture is called the ()
A.discount rate
B.contract rate
C.market rate
D.effective rate
本题答案：
B
14、The excess of issue price over par of common stock is termed a(n) ()
A.discount
B.income
C.deficit
D.premium
本题答案：
D
15、Financial reports are used by ()
A.management
B.creditors
C.investors
D.all of the above
本题答案：
D
16、The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n) ()
A.income statement
B.income statement
C.prior period statement
D.statement of owner’s equity
本题答案：
A
17、The following are examples of external users of accounting information except:()
A.government
B.customers
C.creditors
D.all of the above
本题答案：
D
18、The matching concept ()
A.addresses the relationship between the journal and the balance sheet
B.determines whether the normal balance of an account is a debit or credit
C.requires that the dollar amount of debits equal the dollar amount of credits on a trial balance
D.determines that expenses related to revenue be reported at the same time the revenue is reported
本题答案：
D
19、Using accrual accounting, expenses are recorded and reported only ()
A.when they are incurred, whether or not cash is paid
B.when they are incurred and paid at the same time
C.if they are paid before they are incurred
D.if they are paid after they are incurred
本题答案：
A
20、When the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are ()
A.convertible bonds
B.unsecured bonds
C.debenture bonds
D.callable bonds
本题答案：
D
21、Under the equity method, a stock purchase is recorded at its original cost and is not adjusted to fair market value each accounting period.()
A.正确
B.错误
本题答案：
A
22、Investments in stocks that are expected to be held for the long term are listed in the stockholders’ equity section of the balance sheet.()
A.正确
B.错误
本题答案：
B
23、For strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.()
A.正确
B.错误
本题答案：
A
24、Journalizing is the process of entering amounts in the ledger.()
A.正确
B.错误
本题答案：
B
25、For a current liability to exist, the following two tests must be met. The liability must be due usually within a year and must be paid out of current assets.()
A.正确
B.错误
本题答案：
A
26、An example of an external user of accounting information is the government.()
A.正确
B.错误
27、The declining-balance method is an accelerated depreciation method.()
A.正确
B.错误
28、Revenue is earned only when money is received.()
A.正确
B.错误
29、Capital expenditures are costs that are charged to Stockholders' Equity accounts.()
A.正确
B.错误
30、When the market rate of interest is less than the contract rate for a bond, the bond will sell for a premium.()
A.正确
B.错误
31、When common stock is issued in exchange for land, the land should be recorded in the accounts at the par amount of the stock issued.()
A.正确
B.错误
32、Allowance for Doubtful Accounts is a liability account.()
A.正确
B.错误
33、A balance sheet is a list of the assets, liabilities, and owner's equity of a business for a period of time.()
A.正确
B.错误
34、The balance of the allowance for doubtful accounts is added to accounts receivable on the balance sheet.()
A.正确
B.错误
35、Bondholders claims on the assets of the corporation rank ahead of stockholders.()
A.正确
B.错误
36、The units of production depreciation method matches expenses against revenue the best.()
A.正确
B.错误
37、The declaration of a stock dividend decreases a corporation's stockholders' equity and increases its liabilities.()
A.正确
B.错误
38、The order of the flow of accounting data is (1) record in the ledger, (2) record in the journal, (3) prepare the financial statements.()
A.正确
B.错误
39、When a stock dividend is declared, it becomes a liability.()
A.正确
B.错误
40、Sales Discounts is a revenue account with a credit balance.()
A.正确
B.错误
41、A corporation is a business that is legally separate and distinct from its owners.()
A.正确
B.错误
42、Investments in stocks that are expected to be held for the long term are listed in the stockholder's equity section of the balance sheet.()
A.正确
B.错误
43、A large retained earnings account means that there is cash available to pay dividends.()
A.正确
B.错误
44、The double-entry accounting system records each transaction twice.()
A.正确
B.错误
45、If the proceeds from the sale of bond investments exceeds the carrying amount of the bonds, a gain is realized.()
A.正确
B.错误
46、Under the accrual basis for the accounting period concept, revenues are reported in the income statement in the period in which they are earned.()
A.正确
B.错误
47、The accounting equation can be expressed as Assets - Liabilities = Owner's Equity.()
A.正确
B.错误
48、Overall objective of financial reporting is to provide financial information useful to internal users in making economic decisions.()
A.正确
B.错误
49、Dividends in arrears are liabilities of the corporation.()
A.正确
B.错误
50、Income is recognized when an increase in future benefits related to an increase in an asset of a decrease of a liability has arisen that can be measured reliably.()
A.正确
B.错误
