ACCY 201 BURNEY EXAM AND
CORRECT ANSWERS.
All of the following occur with a double entry accounting system except - Answer
time period - Answer which accounting assumption assumes that accounting information
can be reported monthly or yearly?
Revenue Recognition Principle - Answer which principle states that revenue should only be
recorded when earned?
Expense recognition principle (matching principle) - Answer which principle requires
expenses to be matches with revenue in the proper period?
Cost- benefit - Answer which constraint requires the cost of preparing financial statements
to be less than the benefit of preparing them?
Financial Statements have helpful information for their internal/ external users - Answer
what does relevance mean in accounting?
Balance Sheet - Answer A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
ASSETS= LIABILITIES+EQUITY - Answer which of these is the accounting equation?
5,500 (revenue-expenses=income) - Answer In May, South Depot has earned $8,000 of sales
revenue, spent $500 of utilities expense. What is South Depot's net income?
0.65 (return=net income/total average) (6500/10000=0.65) - Answer Rebel company has net
income of $6,500 and total average assets of $10,000. What is Rebel's return on assets?
4200 (7400-3200=4200) - Answer Big Bad Breakfast (BBB) is a new company and earns net
income of $7400 and distributes dividends of $3200 in its first year. What is BBB'S endings
retained earnings?
Measurement Principle ?? - Answer Principle that prescribes financial statement
information, and its underlying transactions and events, be based on relevant measures of
valuation; also called the cost principle.
CORRECT ANSWERS.
All of the following occur with a double entry accounting system except - Answer
time period - Answer which accounting assumption assumes that accounting information
can be reported monthly or yearly?
Revenue Recognition Principle - Answer which principle states that revenue should only be
recorded when earned?
Expense recognition principle (matching principle) - Answer which principle requires
expenses to be matches with revenue in the proper period?
Cost- benefit - Answer which constraint requires the cost of preparing financial statements
to be less than the benefit of preparing them?
Financial Statements have helpful information for their internal/ external users - Answer
what does relevance mean in accounting?
Balance Sheet - Answer A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
ASSETS= LIABILITIES+EQUITY - Answer which of these is the accounting equation?
5,500 (revenue-expenses=income) - Answer In May, South Depot has earned $8,000 of sales
revenue, spent $500 of utilities expense. What is South Depot's net income?
0.65 (return=net income/total average) (6500/10000=0.65) - Answer Rebel company has net
income of $6,500 and total average assets of $10,000. What is Rebel's return on assets?
4200 (7400-3200=4200) - Answer Big Bad Breakfast (BBB) is a new company and earns net
income of $7400 and distributes dividends of $3200 in its first year. What is BBB'S endings
retained earnings?
Measurement Principle ?? - Answer Principle that prescribes financial statement
information, and its underlying transactions and events, be based on relevant measures of
valuation; also called the cost principle.
