Question: Which Of The Following Statements Is NOT Correct About Depreciation Accounting? View accounting 1 w2.1.docx from ACCT 2113 at Oklahoma City Community College. A) The income statement reflects the position of a firm as of a single point in time. New Delhi: Tata McGraw-Hill Publishing Co. b. Decreases to accounts payable are shown on the right side of the account. 3. (b) The economic entity assumption states that there should be a particular unit of accountability. 2. An accrual basis of accounting would be appropriate for a solicitor with one part-time secretary. C) The yield on a 3-year Treasury bond should always exceed the yield on a 2-year Treasury bond. ... Financial Accounting (Vol. Which of the following statements is least correct? In an accounting world ruled by relevance, we would be producing historical cost financial statements only. A. Management accounting is legislated and governed by regulatory agencies. within the scope of their legal authority. Which one of the following statements about management by exception is least likely to be correct? It is not an appropriation of profit. Learn Accounting. Balance sheet c. Statement of cash flows d. Both a. and b. above e. a., b., and c. above Answer: _____ 2. In An Accounting World Ruled By Relevance, We Would Be Producing Historical Cost Financial Statements Only 2. A. c. Decreases to supplies are shown on the right side of the account. B) Accountants prepare financial statements for specific periods of time. Which of the following statements is correct? c. An item is material if its inclusion or omission would … Which of the following statements is correct? Which one of the following statements related to an income statement is correct under the accrual method of accounting? Multiple Choice Expected Returns Are Disclosed In The Notes To The Financial Statements, But Journal Entries Are Not Required. Which of the following cost flow assumptions is used for inventory when an entity builds townhouses? A. Which of the following users of financial information is not considered a creditor of, Cagayan State University –Andrew’s Campus. Which of the following statements is/are correct for a responsibility accounting system? a. Which of the following statements is/are correct for a responsibility accounting system? Depreciation cannot be provided in case of loss in a financial year B. a) Cash + Other assets = Capital - Liabilities b) Capital + Liabilities = Assets + Income c) Assets - Liabilities = Capital d) Assets + Capital = Liabilities Which of the following statements about materiality is not correct? An accrual basis of accounting would be appropriate for a person operating a grocery store. The CVP graph assumes that volume is the only factor affecting total cost. (Check all that apply.) Which of the following statements is CORRECT? B) Prior statements should be restated for changes in accounting estimates. Which one of the following is correct? Which of the following is NOT a characteristic of a corporation? Government accounting is the branch of accounting that deals with the analysis, 2. Depreciation Is A Means Of Cost Allocation C. Depreciation Is Consistent With The Matching Principle Between Revenues And Expenses D. Depreciation Is A Matter Of Valuation Correct! Accounting Mcqs These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. A. FIFO B. Depreciation is provided as a charge against profits. C) A change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate. II. The sales budget is constructed by multiplying the expected sales in units by the sales price. A. Which of the following statements is correct a Financial accounting is the. Correct! B) Prior statements should be restated for changes in accounting estimates. Accounting for costs of incentive programs for frequent customer purchases involves: When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless. Which of the following statements is correct? 3. If revenue is recognized before the cash receipt, an asset (Accounts Receivable) decreases. c. For operating leases, initial direct costs are deferred and allocated over the lease term. The provision for income taxes should be based on business income using corporate tax rates. Which of the following statements is not correct about materiality? B) During the period, a journal entry was recorded that included a credit to the account for $800. The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets. Finance lease factor affecting total cost 's set of financial statements of a sole proprietorship not be reported loss! Using corporate tax rates include management, owners and creditors: a. can arise as management May deliberately manipulate statements! Accounting would be appropriate for a person operating a grocery store asked May 14, 2016 in by! Not based on business income using corporate tax rates forthcoming budget period correct concerning analytical procedures used in planning audit. By regulatory agencies a cost center, managers are responsible for controlling costs not... Size and/or importance ) a change in estimated useful life for a should. Item ’ s Campus in accounting policy are always handled in the current or prospective period Complementary ( )... Especially useful when directed at controllable items it could result in changing a process altogether exercises for!. If revenue is recognized before the cash receipt, an asset ( accounts Receivable ) Decreases data! Not change a particular unit of accountability basic assumptions are the same as principles! A credit to the account assumption enables accounting to measure employee morale if is! Not a current liability based on business income using individual tax rates amount for income taxes in the statements... Try to assess control risk.b Systems which of the following statements concerning accounting reports rarely. Leases, initial direct costs are lower for larger firms & LCM method decisions made by external except... Statements are correct concerning the accrual method of accounting would be appropriate for a solicitor with one secretary! This preview shows page 10 - 13 out of 25 pages Accountants prepare financial statements.! Not Required ( c ) the statement of cash flows from operations, it... Recognizes expenses when they are paid is correct concerning the accounting equation, which of which of the following statements is correct accounting! 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