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会计英语课后题.docx

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Unlimited liability is an advantage of a sole proprietorship. × A sole proprietorship is a business owned by one or more persons. × As a general rule, revenues should not be recognized in the accounting records until it is received in cash. × In the partnership form of business, the owners are called stockholders. × The area of accounting aimed at serving the decision making needs of internal users is: A Financial accounting. B Managerial accounting. C External auditing. SEC reporting. Bookkeeping. The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someones belief or opinion is: A Business entity assumption. B Monetary unit assumption. C Going-concern assumption. D Time-period assumption. E Objectivity External users of accounting information include all of the following except: A Shareholders. Customers. Purchasing managers. Government regulators. E Creditors. The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the: A Time-period assumption. B Business entity assumption. C Going-concern assumption. D Revenue recognition principle. E Cost principle. If a parcel of land that was originally acquired for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land should be recorded in the purchasers books at: A $95,000. B $137,000. C $138,500. D $140,000. E $150,000. The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000? A Monetary unit assumption. B Going-concern assumption. C Cost principle. D Business entity assumption. E Rev

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