Accounting Theory Exam
Preparation Guide
Course Introduction
Accounting Theory explores the underlying concepts, principles, and frameworks that form the foundation of accounting practices and standards. The course examines the development and evolution of accounting thought, the purpose and use of accounting information, and the regulatory environment influencing reporting standards. Students analyze various theoretical perspectives, such as positive and normative accounting theories, and assess how these theories impact decision-making, standard-setting, and ethical considerations in accounting. Through critical evaluation of current issues and debates, learners develop an advanced understanding of the role of accounting in society and the rationale behind financial reporting rules and practices.
Recommended Textbook
Horngren's Accounting Volume 2 10th Canadian Edition by Tracie L. Miller Nobles
Available Study Resources on Quizplus
7 Chapters
1392 Verified Questions
1392 Flashcards
Source URL: https://quizplus.com/study-set/3557
Page 2
Chapter 1: Partnerships
Available Study Resources on Quizplus for this Chatper
202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/70622
Sample Questions
Q1) Refer to Table 12-9.Wally withdraws from the partnership and accepts $80,000 cash.Assuming the assets have been properly revalued,the entry to withdraw Wally from the partnership includes a:
A) debit to Wally, Capital for $80,000
B) credit to Watson, Capital for $857
C) debit to Watson, Capital for $857
D) debit to Willie, Capital for $643
Answer: B
Q2) The entry to record a withdrawal of a partner from the firm when payment is made from partners' personal assets affects only partners' capital accounts.
A)True
B)False
Answer: True
Q3) A partnership is an association of ________ who co-own a business for profit.
A) two persons
B) ten persons
C) 300 persons
D) two or more persons
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Corporations: Share Capital and the Balance Sheet
Available Study Resources on Quizplus for this Chatper
180 Verified Questions
180 Flashcards
Source URL: https://quizplus.com/quiz/70623
Sample Questions
Q1) During 2017,total dividends declared by Jackson Corp.amounted to $29,000.There were 10,000 shares of $2 noncumulative preferred shares outstanding and 20,000 common shares outstanding.No dividends were declared in 2016.The total amount of dividends payable to each class of shares in 2017 amounted to:
A) $10,000 to preferred, $19,000 to common
B) $20,000 to preferred, $9,000 to common
C) $29,000 to preferred, $0 to common
D) $9,000 to preferred, $20,000 to common
Answer: B
Q2) Refer to Table 13-4.The book value per share for preferred shares is:
A) $52.50
B) $56.00
C) $63.00
D) $59.50
Answer: C
Q3) Corporations pay the same taxes as partnerships and proprietorships.
A)True
B)False
Answer: False
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Corporations: Retained Earnings and the
Income Statement
Available Study Resources on Quizplus for this Chatper
205 Verified Questions
205 Flashcards
Source URL: https://quizplus.com/quiz/70624
Sample Questions
Q1) Refer to Table 14-5.The balance of total shareholders' equity after the declaration of a 3-for-1 stock split is: __________.
Answer: same balance of $1,190,000
Q2) An error on the 2012 income statement is discovered in 2014.The adjustment to correct the error will appear on the:
A) 2014 income statement
B) 2014 statement of retained earnings
C) 2012 income statement
D) 2012 statement of retained earnings
Answer: B
Q3) A 2-for-1 stock split has the same effect on the number of shares outstanding as a: A) 20% stock dividend
B) 50% stock dividend
C) 100% stock dividend
D) 200% stock dividend
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Long-Term Liabilities
Available Study Resources on Quizplus for this Chatper
186 Verified Questions
186 Flashcards
Source URL: https://quizplus.com/quiz/70625
Sample Questions
Q1) Alpha Corporation issued $100,000 face value,10-year,8% bonds on October 1.Interest is payable each April 1 and October 1.Accrued interest on December 31 amounts to $2,000.
A)True
B)False
Q2) Refer to Table 15-1. Assuming the bonds were issued on June 1,2017,at 103.875,and the company uses the straight-line method of amortization,the semiannual cash payment for interest on December 1,2017,would include a:
A) debit to Interest Expense for $36,531
B) credit to Cash for $75,000
C) debit to Discount on Bonds Payable for $1,938
D) debit to Interest Expense for $38,469
Q3) When a bond is issued at a discount,the discount has the effect of raising the interest expense on the bonds to the market rate of interest.
A)True
B)False
Q4) The future value of an investment is less than the present value.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Investments and International Operations
Available Study Resources on Quizplus for this Chatper
191 Verified Questions
191 Flashcards
Source URL: https://quizplus.com/quiz/70626
Sample Questions
Q1) Goodwill is shown on the balance sheet of:
A) both the parent and the subsidiary
B) only the parent
C) only the subsidiary
D) either the parent or the subsidiary but not both
Q2) An investor has made one short-term investment in shares.If the shares were bought on July 23 for $10,000,and they are worth $13,500 as of year-end,the increase in value will result in:
A) the net investment appearing on the balance sheet with a value of $10,000
B) dividend income of $3,500 reported on the balance sheet
C) a direct $3,500 increase to retained earnings that is not reported on the income statement
D) a $3,500 unrealized gain reported on the income statement
Q3) Goodwill is an_________ shown on the ________.
A) current asset, subsidiary's balance sheet
B) intangible asset, consolidated balance sheet
C) intangible asset, subsidiary's balance sheet
D) short-term investment, consolidated balance sheet
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: The Cash Flow Statement
Available Study Resources on Quizplus for this Chatper
207 Verified Questions
207 Flashcards
Source URL: https://quizplus.com/quiz/70627
Sample Questions
Q1) An exchange of shares for land is presented on the cash flow statement as a financing activity and an investing activity.
A)True
B)False
Q2) Which of the following items would be reported as an operating activity?
A) purchase of land
B) payment of interest
C) payment of dividends
D) sale of common shares
Q3) Cash payments for income tax equals the income tax expense less the decrease in income tax payable.
A)True
B)False
Q4) If the cash collections from customers amounted to $634,800,and the accounts receivable account decreased $19,400 during the same period,sales for the period were:
A) $654,200
B) $615,400
C) $634,800
D) $0
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
214 Verified Questions
214 Flashcards
Source URL: https://quizplus.com/quiz/70628
Sample Questions
Q1) In 2016,net sales were $1,500,000 and in 2017,net sales were $1,750,000.The percent change is calculated by dividing:
A) $1,500,000 by $1,750,000
B) $1,750,000 by $1,500,000
C) $250,000 by $1,500,000
D) $250,000 by $1,750,000
Q2) Assuming the accounts payable balance at the end of 2017 is $75,000,and it has decreased 20% since the end of 2016,the balance at the end of 2016 (rounded to the nearest whole dollar_was:
A) $60,000
B) $93,750
C) $72,000
D) $90,000
Q3) The acid-test ratio is calculated as:
A) (total current liabilities)/(total current assets)
B) (cash + short-term investments + net current receivables)/(total current liabilities)
C) (cash + short-term investments + net current receivables)/(total current assets)
D) (total current assets)/(total current liabilities)
To view all questions and flashcards with answers, click on the resource link above. Page 9