The petty cash fund should be replenished only at the end of each accounting period so that the accounts are brought up-to-date.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Match each of the following terms with the appropriate definition. Each term should be used only once.
a. Generally Accepted Accounting Principles (GAAP)
b. Financial Accounting Standards Board (FASB)
c. Separate-entity assumption
d. Time-period assumption
e. Usefulness
f. Relevant
g. Consistency
h. Materiality
i. Accounts payable
j. On account
_____ 1. Amounts that a company owes its vendors
_____ 2. The significance of an amount or item on the financial statements
_____ 3. The rules set by the SEC and FASB for preparing financial statements
_____ 4. The most important characteristic of accounting information and the objective of financial reporting
_____ 5. A qualitative characteristic of accounting information that requires that information be fresh and allows users to evaluate a firm's past performance to predict where a firm is going
_____ 6. Term used to signify either buying or selling on credit
_____ 7. A qualitative characteristic of accounting information that requires that firms use the same accounting rules from period to period
_____ 8. The current standards setting body for the U.S. accounting profession
_____ 9. The assumption that the life of the company can be separated into accounting periods of equal length
_____ 10. The requirement that a company and its owners keep separate financial records
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Q. 3) When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a
a. debit to Merchandise Inventory; a credit to Cash
b. debit to Cash; a credit to Merchandise Inventory
c. debit to Cash; a credit to Sales
d. debit to Sales; a credit to Accounts Payable
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Q. 4) CPA stands for Certified Private Accountant.
Indicate whether the statement is true or false
(
Q. 5) A logic bomb is a computer abuse technique in which unauthorized code is inserted in a program, which, when activated, may cause a disaster such as shutting down a system or destroying data.
Indicate whether the statement is true or false
(
Q. 6) Discuss the qualities of accounting information.
What will be an ideal response?
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