Accounting questions(pls answer if you are sure of it)?

1.The communication of accounting information is accomplished by
a.Recording
b.Storing
c. Processing
d.Reporting

2.The convention of consistency refers to consistent use of accounting principles
a.among firms
b.among accounting periods
c.throughout the accounting period
d.within industries

3.To obtain a slightly more accurate measure of net income, ABC Inc. has determined it must hire 2 full time accountants. If it decides against the hiring, it has followed the convention of
a.consistency
b.cost benefit
c.conservatism
d.full disclosure

4.According to generally accepted accounting principles, is a change in accounting method allowed ONLY WHEN THE NEW METHOD IS DEEMED PREFERABLE?

5.an investment is classified as either short-term or long-term based on
a.The length of time the investor expects to hold it
b.the length of time it has been held
c.whether the investment can be sold immediately.(is it A?)

6.The normal operating cycle helps define the CURRENT ASSETS on the balance sheet section, right?

7.Franchise fees paid to Burget King to operate a restaurant franchise would appear in which belance sheet section?
a.Current asset
b.Investments
c.Property, plant, and equipment
d.Intangible assets

8. Interest Expense on a mortgage would be classified on a multi-step Income Statement under the heading
a. Other Revenues and Expenses
b.General and Administrative Expenses
c.Selling Expenses
d. Cost of Goods Sold

1d - the first three involve the accumulation of the information which is communicated by reporting financial statements.
2b - consistency applies to the consistent use of the same principles from one period to another so that the financial statements of different periods are comparable.
3 - b is not an accounting convention. a would keep the system as before so it appears to be the correct answer. One could argue for c, but not strongly.
4. Yes. a change in principle should occur if it will provide better information to decision makers.
5a - The classification is a choice made by management.
6 Yes. Current assets are those that are expected to be used up during the next accounting period.
7d. Franchises are intangible assets. However periodic franchise sees are operating expenses, so this is not a well worded question.
8. - c and d don't fit at all. Actually interest is a financing expense. a is probably the best answer although some companies may use b.

1. d
2. b
3. c
4. "No Answer"
5. a (u right!!!! :) )
6. "No Answer"
7. b
8. b