56. When
a business reports an asset at an inflated dollar amount, is has violated the
measurement issue of
A. recognition.
B. valuation.
C. classification.
D. realization.
57. Which
of the following is not a measurement issue in accounting?
A. When to record a business transaction.
B. How to classify the items of a business transaction.
C. How to classify the items of a business transaction.
D. Where to record a business transaction.
58. The
issue of deciding when to record a transaction is solved by
A. properly classifying the transaction.
B. deciding on a point of recognition.
C. assigning historical cost to the transaction.
D. analyzing the intent of management.
59. The
cost principle relates most closely to the
A. recognition point.
B. recognition issue.
C. valuation issue.
D. classification issue.
60. Which
of the following is not a measurement issue in accounting?
A. Valuation.
B. Recognition.
C. Evaluation.
D. Classification.
61. Which
of the following is an illustration of the classification issue?
A. At what amount should land be shown on the balance sheet?
B. At what point should the payment of salaries to employees be recorded?
C. Should supplies be recorded as an asset or as an expense?
D. At what point should a bill be paid for the purchase of an item?
62. When
a business erroneously records expenses as assets, it has violated the
measurement issue of
A. communication.
B. classification.
C. valuation.
D. realization.
63. After
initially recording an asset at cost, fair value is
A. the price at which an asset couldbe sold in a current
transaction between independent parties.
B. the actual, or historical, price at which the asset was acquired.
C. the easiest value used to measure and record assets.
D. verifiable at all future dates by referring to the invoice price paid
for the asset.
64. Proper
__________ depends on correctly analyzing the effect of each transaction and on
maintaining a system of accounts that reflects that effect.
A. classification
B. valuation
C. recognition
D. realization
65. Which
of the following accounts is increased with a debit?
A. Jim Webb, Capital
B. Rent Payable
C. Service Revenue
D. Prepaid Insurance
