Finance Midterm
Submitted by: Submitted by sabieJ
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Words: 982
Pages: 4
Category: Other Topics
Date Submitted: 02/01/2013 05:55 PM
1. | Question : | (TCO 1) Who ultimately controls a corporation? |
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| Student Answer: | | Board of Directors. |
| | | Chief Executive Officer. |
| | | Stockholders. |
| | | President. |
| Instructor Explanation: | Chapter 1 |
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| Points Received: | 0 of 4 |
| Comments: | |
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2. | Question : | (TCO1) For which form of business ownership are the owners of a business legally distinct from the business? |
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| Student Answer: | | Corporation |
| | | Partnership |
| | | Proprietorship |
| | | All of the above. |
| Instructor Explanation: | Chapter 1 |
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| Points Received: | 4 of 4 |
| Comments: | |
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3. | Question : | (TCO 1) The objectivity principle of accounting: |
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| Student Answer: | | holds that the entity will remain in operation for the foreseeable future. |
| | | enables accountants to ignore the effect of inflation in the accounting records. |
| | | maintains that each organization or section of an organization stands apart from other organizations and individuals. |
| | | ensures that accounting records and statements are based on the most reliable data available. |
| Instructor Explanation: | Chapter 1 |
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| Points Received: | 4 of 4 |
| Comments: | |
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4. | Question : | (TCO1) The principle which states that assets acquired by the business should be recorded at their actual price is the: |
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| Student Answer: | | cost principle. |
| | | objectivity principle. |
| | | reliability principle. |
| | | stable dollar principle. |
| Instructor Explanation: | Chapter 1 |
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| Points Received: | 4 of 4 |
| Comments: | |
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5. | Question : | (TCO 1) The accounting equation can be stated as: |
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| Student Answer: | | Assets + Stockholders’ Equity = Liabilities |
| | | Assets - Liabilities =...
