91. Which of the following are guidelines for behaving ethically?
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I.
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Identify the consequences of a decision and its effect on others.
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II.
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Consider your obligations and responsibilities to those affected by the decision.
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III.
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Identify your decision based on personal standards of honesty and fairness.
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92. Which of the following not a requirement for obtaining a CPA certificate?
A. Passing an examination prepared by the AICPA.
B. Having experience in wordprocessing, electronic spreadsheets and databases.
C. Acquiring college education in accounting.
D. All of these are requirements for obtaining a CPA certificate.
93. The initials GAAP stand for
A. General Accounting Procedures
B. Generally Accepted Plans
C. Generally Accepted Accounting Principles
D. Generally Accepted Accounting Practices
94. Presently, the dominant body in the development of accounting principles is the
A. American Institute of Certified Public Accountants (AICPA)
B. American Accounting Association (AAA)
C. Financial Accounting Standards Board (FASB)
D. Institute of Management Accountants (IMA)
95. The business entity concept means that
A. the stockholder is part of the business entity
B. an entity is organized according to state or federal statutes
C. an entity is organized according to the rules set by the FASB
D. the entity is an individual economic unit for which data are recorded, analyzed, and reported
96. 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
97. Darnell Company purchased $88,000 of computer equipment from Joseph Company. Darnell Company paid for the equipment using cash that had been obtained from the initial investment by Donnie Darnell. The transaction involving the computer equipment should be recorded on the accounting records of which of the following entities?
A. Darnell Company and Darnell stockholders’ personal records
B. Joseph Company and Darnell stockholders’ personal records
C. Darnell Company and Joseph Company
D. Joseph Company
98. The objectivity principle requires that
A. business transactions must be consistent with the objectives of the entity
B. the Financial Accounting Standards Board must be fair and unbiased in its deliberations over new accounting standards
C. accounting principles must meet the objectives of the Security and Exchange Commission
D. amounts recorded in the financial statements must be based on independently verifiable evidence
99. Recently, Crystal Cleaning Company, a small corporation, paid dividends of $18,000 to its stockholders and Crystal’s major stockholder, Denzel Jones contributed $14,000, in his name, to Habitat for Humanity. The contribution of the $14,000 should be recorded on the accounting records of which of the following entities?
A. Crystal Cleaning and Habitat for Humanity
B. Denzel Jones' personal records and Habitat for Humanity
C. Denzel Jones’ personal records and Crystal Cleaning
D. Denzel Jones’ personal records, Crystal Cleaning, and Habitat for Humanity
100. Equipment with an estimated market value of $55,000 is offered for sale at $75,000. The equipment is acquired for $20,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is
A. $55,000
B. $60,000
C. $20,000
D. $75,000