Question : 91. The initials GAAP stand for A. General Accounting ProceduresB. Generally Accepted PlansC. Generally Accepted : 1233754

91. The initials GAAP stand for 
A. General Accounting Procedures
B. Generally Accepted Plans
C. Generally Accepted Accounting Principles
D. Generally Accepted Accounting Practices

92. Presently, the dominant body in the 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)

93. 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

94. 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. all of the above

95. Smith Company purchased $105,000 of computer equipment from Brown Company. Smith Company paid for the equipment using cash that had been obtained from the initial investment by Connie Smith. The transaction involving the computer equipment should be recorded on the accounting records of which of the following entities? 
A. Smith Company and Connie Smith’s personal records
B. Brown Company and Connie Smith’s personal records
C. Brown Company
D. Smith Company and Brown Company

96. The objectivity principle requires that 
A. business transactions must be consistent with the objectives of the entity
B. the Financial Accounting Standards Board must be fair and unbiased in its deliberations over new accounting standards
C. accounting principles must meet the objectives of the Security and Exchange Commission
D. amounts recorded in the financial statements must be based on independently verifiable evidence

97. The Reynolds Company estimated that the value of its land had increased from $10,000 to $16,000 and therefore wrote up the land account to $16,000. Which accounting concept(s) was (were) violated? 
A. cost concept
B. objectivity concept
C. unit of measure concept
D. cost and objectivity concepts

98. John Williams owns stock in the Indoor Advertising Company. Recently, John was paid $18,000 in the form of cash dividends from Indoor Advertising, and he contributed $10,000, in his name, to the Red Cross. The contribution of the $10,000 should be recorded on the accounting records of which of the following entities? 
A. Indoor Advertising and the Red Cross
B. John William’s personal records and the Red Cross
C. John William’s personal records and Indoor Advertising
D. John William’s personal records, Indoor Advertising, and the Red Cross

99. Equipment with an estimated market value of $45,000 is offered for sale at $65,000. The equipment is acquired for $10,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer’s accounting records to record this acquisition is 
A. $50,000
B. $65,000
C. $10,000
D. $45,000

100. ____ is the authoritative body having the primary responsibility for developing accounting principles. 
A. FASB
B. IRS
C. SEC
D. AICPA