91. A corporation: A. Is a business legally separate from its owners. B. Is controlled by the FASB. C. Has shareholders who have unlimited liability for the acts of the corporation. D. Is the same as a limited liability partnership. E. Is not subject to double taxation. 92. The group that attempts to create more harmony among the accounting practices of different countries is the: A. AICPA. B. IASB. C. CAP. D. SEC. E. FASB. 93. The private group that currently has the authority to establish generally accepted accounting principles in the United States is the: A. APB. B. FASB. C. AAA. D. AICPA. E. SEC. 94. 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. 1-14 Chapter 01 – Accounting in Business 95. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold unless evidence shows that it will not continue is the: A. Going-concern assumption. B. Business entity assumption. C. Objectivity principle. D. Cost Principle. E. Monetary unit assumption. 96. 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 purchaser’s books at: A. $95 000. B. $137 000. C. $138 500. D. $140 000. E. $150 000. 97. To include the personal assets and transactions of a business’s owner in the records and reports of the business would be in conflict with the: A. Objectivity principle. B. Monetary unit assumption. C. Business entity assumption. D. Going-concern assumption. E. Revenue recognition principle. 98. The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange is the: A. Accounting equation. B. Cost principle. C. Going-concern assumption. D. Realization principle. E. Business entity assumption. 1-15 Chapter 01 – Accounting in Business 99. The rule that (1) requires revenue to be recognized at the time it is earned (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services is called the: A. Going-concern assumption. B. Cost principle. C. Revenue recognition principle. D. Objectivity principle. E. Business entity assumption. 100. The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the: A. Revenue recognition principle .1em;”> B. Going-concern assumption. C. Objectivity principle. D. Business entity assumption. E. Cost principle.
