ACCOUNTING PRINCIPLES -
MIDTERM comprehensive Questions
and Answers with Verified Solutions
Question 1:
ACCOUNTING
Answer:
planning, recording, analyzing, and interpreting financial information
Question 2:
MANAGERIAL ACCOUNTING
Answer:
the area of accounting that focuses on reporting information to internal
users
Question 3:
Assets=Liabilities+Equity
Answer:
basic accounting equation
Question 4:
LSSRR (debit decrease, Credit Increase)
Answer:
liabilities, share equity, share capital, retained earnings, revenues
, Question 5:
DEAL (debit increase, credit decrease)
Answer:
dividends, expenses, assets, losses
Question 6:
Preparing statements on the assumption that the business will carry on
indefinitely is known as what?
Answer:
the going concern concept
Question 7:
a measurement of how easily the company can reach short-term
obligations
Answer:
liquidity
Question 8:
cash is low on liquidity
Answer:
false
Question 9:
current assets are high liquidity true or false?
Answer:
true
MIDTERM comprehensive Questions
and Answers with Verified Solutions
Question 1:
ACCOUNTING
Answer:
planning, recording, analyzing, and interpreting financial information
Question 2:
MANAGERIAL ACCOUNTING
Answer:
the area of accounting that focuses on reporting information to internal
users
Question 3:
Assets=Liabilities+Equity
Answer:
basic accounting equation
Question 4:
LSSRR (debit decrease, Credit Increase)
Answer:
liabilities, share equity, share capital, retained earnings, revenues
, Question 5:
DEAL (debit increase, credit decrease)
Answer:
dividends, expenses, assets, losses
Question 6:
Preparing statements on the assumption that the business will carry on
indefinitely is known as what?
Answer:
the going concern concept
Question 7:
a measurement of how easily the company can reach short-term
obligations
Answer:
liquidity
Question 8:
cash is low on liquidity
Answer:
false
Question 9:
current assets are high liquidity true or false?
Answer:
true
