71.Select the type of business that is most likely to obtain large amounts of resources by issuing stock.
a.partnership
b.corporation
c.proprietorship
d.government entity
72.Which of the following is
nota characteristic of a corporation?
a.Corporations are organized as a separate legal taxable entity.
b.Ownership is divided into shares of stock.
c.Corporations experience an ease in obtaining large amounts of resources by issuing stock.
d.A corporation’s resources are limited to its individual owners’ resources.
73.Within the United States, the dominant body in the primary 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)
74.The business entity concept means that
a.the owner 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
75.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.any of these
76.The objectivity concept requires that
a.business transactions be consistent with the objectives of the entity
b.the Financial Accounting Standards Board be fair and unbiased in its deliberations over new accountingstandards
c.accounting principles meet the objectives of the Security and Exchange Commission
d.amounts recorded in the financial statements be based on independently verifiable evidence
77.Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from CrystalCleaning, and she contributed $6,000, in her name, to the American Red Cross. The contribution of the $6,000should be recorded on the accounting records of which of the following entities?
a.Crystal Cleaning and the American Red Cross
b.Karen Meyer's personal records and the American Red Cross
c.Karen Meyer's personal records and Crystal Cleaning
d.Karen Meyer's personal records, Crystal Cleaning, and the American Red Cross
78.Equipment with an estimated market value of $30,000 is offered for sale at $45,000. The equipment is acquired for$15,000 in cash and a note payable of $20,000 due in 30 days. The amount used in the buyer's accounting recordsto record this acquisition is
a. $30,000
b. $35,000
c. $15,000
d. $45,000
79.Which one of the following is the authoritative body in the United States having the primary responsibility fordeveloping accounting principles?
a.FASB
b.IRS
c.SEC
d.AICPA
80.Which of the following concepts relates to separating the reporting of business and personal economic transactions?
a.cost concept
b.unit of measure concept
c.business entity concept
d.objectivity concept