Sophia Pathways Accounting - Final
Milestone 1
Which of the following is a major advantage to forming a
corporation?
•
Lenders of a corporation do not have the right to claim the corporation's assets to pay
its debts.
•
The income from a corporation is not taxed.
•
Stockholders have limited liability for the debts of the corporation.
•
A corporation is usually managed by its owners.
CONCEPT
Businesses and Organizations
2
Which of the principles below does Val follow when she reviews her
records to make sure that recorded accounting events correspond
to the actual costs?
•
Full disclosure principle
•
Time period principle
•
Measurement principle
•
Matching principle
CONCEPT
Conceptual Framework and Principles
, Sophia Pathways Accounting - Final
3
The employees of Catherine's business earned $22,800 in wages during
December, but the next payday is not until January 2nd.
When Catherine makes an adjustment on her December 31st trial
balance worksheet to account for these wages, what two types of
accounts will be affected?
•
An asset account and an expense account
•
A payable account and a revenue account.
•
An expense account and a payable account
•
Owner's equity and a payable account
CONCEPT
Creating Adjusting Entries
4
Which of the following is responsible for conducting an independent
examination of a company's financial statements and records?
•
Bookkeeper
•
Stakeholder
•
Auditor
•
Controller
CONCEP
Milestone 1
Which of the following is a major advantage to forming a
corporation?
•
Lenders of a corporation do not have the right to claim the corporation's assets to pay
its debts.
•
The income from a corporation is not taxed.
•
Stockholders have limited liability for the debts of the corporation.
•
A corporation is usually managed by its owners.
CONCEPT
Businesses and Organizations
2
Which of the principles below does Val follow when she reviews her
records to make sure that recorded accounting events correspond
to the actual costs?
•
Full disclosure principle
•
Time period principle
•
Measurement principle
•
Matching principle
CONCEPT
Conceptual Framework and Principles
, Sophia Pathways Accounting - Final
3
The employees of Catherine's business earned $22,800 in wages during
December, but the next payday is not until January 2nd.
When Catherine makes an adjustment on her December 31st trial
balance worksheet to account for these wages, what two types of
accounts will be affected?
•
An asset account and an expense account
•
A payable account and a revenue account.
•
An expense account and a payable account
•
Owner's equity and a payable account
CONCEPT
Creating Adjusting Entries
4
Which of the following is responsible for conducting an independent
examination of a company's financial statements and records?
•
Bookkeeper
•
Stakeholder
•
Auditor
•
Controller
CONCEP
