CSUF ACCT 201A - HATTON COMPLETE QUESTIONS AND CORRECT ANSWERS | GRADED AND THE LATEST SERIES

CSUF ACCT 201A - HATTON COMPLETE
QUESTIONS AND CORRECT ANSWERS |
GRADED AND THE LATEST SERIES
cash basis of accounting

Ans: practice of recording revenues when cash is received and
recording expenses when the expense is paid.


Question: creditors

Ans: a person or company (bank) to whom money is owed to


Question: bank service charge

Ans: an administrative expense which reports fees incurred by a
company for the expenses associated with its checking account
transactions


Question: market value

Ans: the amount for which something can be sold on a given market


Question: allowance for doubtful accounts

Ans: a balance sheet account that reduces the reported amount of
accounts receivable


Question: accumulated depreciation

, Ans: the cumulative depreciation of an asset up to a single point in its
life


Question: documentation procedures

Ans: 1. use prenumbered documents and all documents should be
accounted for and 2. promptly forward source documents for accounting
entries to the accounting department


Question: independent internal verification

Ans: involves the review of data prepared by employees


Question: establishment of responsibilities

Ans: control is most effective when only one person is responsible for
a given task


Question: segregation of duties

Ans: 1. different individuals should be responsible for related
activities and 2. the responsibility for record keeping for an asset should
be separate from the physical custody of that asset


Question: accrual basis of accounting

Ans: accounting basis in which companies record, in the periods in
which the events occur, transactions that change a company's financial
statements, even if cash was not exchanged