Financial Accounting Exam 1 2023 with correct answers graded A+

cost - The cost principle requires that when assets are acquired, they be recorded at ___________ the same on the date of acquisition - The cost of an asset and its fair value are physical laws of nature - The body of theory underlying accounting is not based on convergence - In order to increase comparability, in recent years, the FASB and IASB have made efforts to reduce the differences between U.S.GAAP and IFRS through a process known as cost principle - Martin Corporation purchased land in 2007 for $290,000. In 2013, it purchased a nearly identical parcel of land for $460,000. In its 2013 balance sheet, Martin valued these two parcels of land at a combined value of $920,000. By reporting the land in this manner, Martin Corp. has violated the transaction - Accountants refer to an economic event as a computers - The process of recording transactions has become more efficient because of _____________________ preparing accounting reports - Communication of economic events is the part of the accounting process that involves identification, recording, communication - The accounting process is correctly sequenced as ____________,_________________,__________________ special memos for each class of external users - What techniques are not used by accountants to interpret and report financial information? recording - Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process? luca pacioli - The origins of accounting are generally attributed to the work of identify the alternatives and weigh the impact of each alternative on stakeholders - The final step in solving an ethical dilemma is to... recognize an ethical situation and the ethical issues involved - The first step in solving an ethical dilemma is to... economic entity assumption - Andre Dickinson, owner of Andre's Fine Wines, also owns a personal residence that costs $475,000. The market value of his residence is $625,000. During preparation of the financial statements for Andre's Fine Wines, the accounting concept most relevant to the presentation of Andre's home is standards that indicate how to report economic events - Generally accepted accounting principles are financial accounting standards board - The private sector organization involved in developing accounting principles is the GAAP - generally accepted accounting principles relevant - Financial information that is capable of making a difference in a decision is ___________ investment securities - The fair value principle is applied for _________ ___________ owned by its stockholders - A business organized as a corporation is ... economic entity assumption - A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the... monetary unit assumption - The assumption that the unit of measure remains sufficiently constant over time is part of the corporation - Owners enjoy limited liability in a _____________________ liabilities - existing debts and obligations ownership claim on total assets - Stockholders' equity can be described as... revenues - gross increases in stockholders' equity resulting from business activities there must be an equal decrease in another asset - If an individual asset is increased, then... stockholders' equity will increase - If services are rendered for credit, then... the statement of financial position - The balance sheet is frequently referred to as