SCRIPT COMPLETE QUESTIONS AND
SOLUTIONS COMPREHENSIVE STUDY SHEET
PRACTICE SET 40
◉ IASB.
Answer: International Accounting Standards Board
◉ historical cost.
Answer: Financial elements are measured based on their cost
◉ fair value.
Answer: Financial elements are measured based on what they are
worth
◉ accounting equation!!!!.
Answer: Assets = Liabilities + Equity
◉ assets.
Answer: resources a business owns/controls
, ◉ liabilities.
Answer: amounts owed to creditors
◉ Stockholders' Equity.
Answer: claims of owners
◉ stockholders' equity is also known as.
Answer: residual interest (leftover)
◉ examples of contributed vs earned capital.
Answer: contributed: common stock, preferred stock, additional
paid-in capital
earned: retained earnings, revenues, expenses, dividends
◉ revenue.
Answer: increases in assets or decreases in liabilities from selling
goods or performing services
◉ revenue will not equal.
Answer: cash flow
◉ expenses.