1.According to the FASB’s conceptual framework, which of the following is an essential characteristic of an asset?

Question 1 options:
a) An asset is tangible.
b) The claims to an asset’s benefits are legally enforceable.
c) An asset is obtained at a cost.
d) An asset provides future benefits.
2.Materiality is used in all of the following situations of providing financial information, except
Question 2 options:
a) where omission of the information would result in bias.
b) where it would impact the judgment of a reasonable person.
c) where it would not make a difference in the actions of a decision maker.
d) where an amount is of relative large size and importance.
3.Which accounting assumption or principle is being violated if a company is a party to major litigation that it may lose and decides not to include the information in the financial statements because it may have a negative impact on the company’s stock price?
Question 3 options:
a) Full disclosure.
b) Expense recognition.
c) Historical cost.
d) Going concern.
4.Which factor would be greater — the present value of $1 for 10 periods at 8% per period or the future value of $1 for 10 periods at 8% per period?
Question 4 options:
a) Need more information.
b) The factors are the same.
c) Present value of $1 for 10 periods at 8% per period.
d) Future value of $1 for 10 periods at 8% per period.
5.On December 1, 2017, Leonard Company sold some machinery to Curtis Company. The two companies entered into an installment sales contract at a predetermined interest rate. The contract required four equal annual payments with the first payment due on December 1, 2017, the date of the sale. What time value of money concept is appropriate for this situation?
Question 5 options:
a) Future amount of 1 for four periods
b) Future amount of an annuity of 1 for four periods
c) Present value of an annuity due of 1 for four periods.
d) Present value of an ordinary annuity of 1 for four periods
6.Jeremy Products purchased a machine for $65,000 on July 1, 2017. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $5,000. Depreciation for 2017 is
Question 6 options:
a) $14,219
b) $32,500
c) $15,000
d) $8,125
7.For 2017, Tyler Company reports beginning of the year total assets of $900,000, end of the year total assets of $1,100,000, net sales of $1,000,000, and net income of $200,000.
The rate of return on assets for Tyler in 2017 is
Question 7 options:
a) 22.2%.
b) 18.2%.
c) 16.0%
d) 20.0%.