Doug’s Doohickeys sells hardware. His sales have finally reached $1,000,000 annually after years of hard work. Now his accountant has discovered a mistake-Doug misclassified a $2 expense several months ago. His accountant decides to ignore it. What accounting concept does he use to justify this? Mark one answer:
(A)The going concern concept
(B)The materiality concept
(C)The money measurement concept
(D)The matching concept
(E)The time is money concept
Which of the following transactions have a negative impact on cash? Mark one answer:
(A)A decrease in supplies on hand (B)Proceeds from selling equipment used in the business (C)A loss on selling equipment used in the business (D)Dividends declared and paid (E)An increase in income taxes payable
Correct Answer: D
What are the number of shares Jet should use to calculate Year 1 earnings per share?
(A)40,000 (B)45,000 (C)50,000 (D)54,000
Correct Answer: B
Three key words used to describe the ethical responsibilities of accountants are:
(A)CPA's, GAAP, AICPA (B)Competence, objectivity, and confidentiality (C)Reliability, integrity, and honesty (D)Integrity, intelligence, and reliability (E)Secrecy, intelligence, and reliability
Correct Answer: B
More CPA Exam Questions
- 1What is the difference between a balance sheet and a trial balance? Mark one answer:
- 2A static budget contains which of the following amounts?
- 3When capital is increased in the double-entry method of accounting, the result is: Mark one answer:
- 4In the statement of owner’s equity, owner’s equity or capital is calculated using: Mark one answer:
- 5The purpose of the trial balance is to: