Accounting 250 Final Multiple Choice Questions with all
Correct & 100% Verified Answers |Latest Version |
Already Graded A+
What is the basic accounting equation?
a. A - L - E
b. A=L+E
c. A+L=E
d. A-L+R ✔Correct Answer-B. Asset= Liabilities + Equity
The accounting process is correctly sequenced as:
a. identification, communication, recording
b. Recording, communication, identification
c. identification, recording, communication
d. communication, recording, identification ✔Correct Answer-C. Identification, recording,
communication
Communication of economic events is a part of the accounting process that involves:
a. Identifying economic events
b. quantifying transactions into dollars and cents
c. recording and classifying information
d. preparing accounting reports ✔Correct Answer-A. Identifying economic events
ABS Company purchased land in 2004 for $250,000. In 2016, in purchased a nearly identical parcel of
land for $500,000. In its 2016 balance sheet, ABC Company valued these two parcels of land at a
combined value of $1,000,000. By reporting the land in this manner, ABC Company has violated:
A. Historical Cost Principle
B. Convergence
C. Economic entity assumption
D. Fair Value Principle ✔Correct Answer-A. Historical Cost Principle
Generally accepted accounting principles are:
A: Income tax regulations of the IRS
B. Standards that indicate how to report economic events
C. Theories that are based on physical laws of the universe
D. Principles that have bee proven correct by academic researchers ✔Correct Answer-B. Standards
that indicate how to report economic events
Revenue - Expenses ✔Correct Answer-Net Income
Which if the accounts would appear on a balance Sheet?
1. Rent expense
2. Equipment
3. Accounts Payable
4. Common Stock
5. Insurance Expense
6. Cash
7. Accounts Receivable
Correct & 100% Verified Answers |Latest Version |
Already Graded A+
What is the basic accounting equation?
a. A - L - E
b. A=L+E
c. A+L=E
d. A-L+R ✔Correct Answer-B. Asset= Liabilities + Equity
The accounting process is correctly sequenced as:
a. identification, communication, recording
b. Recording, communication, identification
c. identification, recording, communication
d. communication, recording, identification ✔Correct Answer-C. Identification, recording,
communication
Communication of economic events is a part of the accounting process that involves:
a. Identifying economic events
b. quantifying transactions into dollars and cents
c. recording and classifying information
d. preparing accounting reports ✔Correct Answer-A. Identifying economic events
ABS Company purchased land in 2004 for $250,000. In 2016, in purchased a nearly identical parcel of
land for $500,000. In its 2016 balance sheet, ABC Company valued these two parcels of land at a
combined value of $1,000,000. By reporting the land in this manner, ABC Company has violated:
A. Historical Cost Principle
B. Convergence
C. Economic entity assumption
D. Fair Value Principle ✔Correct Answer-A. Historical Cost Principle
Generally accepted accounting principles are:
A: Income tax regulations of the IRS
B. Standards that indicate how to report economic events
C. Theories that are based on physical laws of the universe
D. Principles that have bee proven correct by academic researchers ✔Correct Answer-B. Standards
that indicate how to report economic events
Revenue - Expenses ✔Correct Answer-Net Income
Which if the accounts would appear on a balance Sheet?
1. Rent expense
2. Equipment
3. Accounts Payable
4. Common Stock
5. Insurance Expense
6. Cash
7. Accounts Receivable
