Acct 201a CSUF Hoffman Complete
Questions And Solutions
Trial Balance CORRECT ANSWERS 1. Lists accounts and their balance at a given time
2. Mathematical equality of debits and credits after posting
3. Uncovers errors in journalizing and posting
What happens when shareholders invest in a company? CORRECT ANSWERS 1.
Stockholder's Equity increases
2. Cash increases
3. Cash Debit
4. Common Stock Credit
Monetary Unit Assumption CORRECT ANSWERS An assumption that requires that
only those things that can be expressed in money are included in the accounting
records.
Cost Constraint CORRECT ANSWERS Constraint that weighs the cost that companies
will incur to provide the information against the benefit that financial statement users will
gain from having the information available.
Economic Entity Assumption CORRECT ANSWERS An assumption that every
economic entity can be separately identified and accounted for.
Going Concern Assumption CORRECT ANSWERS The assumption that the company
will continue in operation for the foreseeable future.
Unearned Revenue Adjustment CORRECT ANSWERS Advance collection:
1. Debit cash
2. Credit Unearned Revenue
Adjustment for supplies used CORRECT ANSWERS Debit supplies expense
Credit supplies
Periodicity Assumption CORRECT ANSWERS An assumption that the economic life of
a business can be divided into artificial time periods.
Full Disclosure Principle CORRECT ANSWERS Accounting principle that dictates that
companies disclose circumstances and events that make a difference to financial
statement users.
Revenue Recognition Principle CORRECT ANSWERS The principle that companies
recognize revenue in the accounting period in which the performance obligation is
satisfied.
Questions And Solutions
Trial Balance CORRECT ANSWERS 1. Lists accounts and their balance at a given time
2. Mathematical equality of debits and credits after posting
3. Uncovers errors in journalizing and posting
What happens when shareholders invest in a company? CORRECT ANSWERS 1.
Stockholder's Equity increases
2. Cash increases
3. Cash Debit
4. Common Stock Credit
Monetary Unit Assumption CORRECT ANSWERS An assumption that requires that
only those things that can be expressed in money are included in the accounting
records.
Cost Constraint CORRECT ANSWERS Constraint that weighs the cost that companies
will incur to provide the information against the benefit that financial statement users will
gain from having the information available.
Economic Entity Assumption CORRECT ANSWERS An assumption that every
economic entity can be separately identified and accounted for.
Going Concern Assumption CORRECT ANSWERS The assumption that the company
will continue in operation for the foreseeable future.
Unearned Revenue Adjustment CORRECT ANSWERS Advance collection:
1. Debit cash
2. Credit Unearned Revenue
Adjustment for supplies used CORRECT ANSWERS Debit supplies expense
Credit supplies
Periodicity Assumption CORRECT ANSWERS An assumption that the economic life of
a business can be divided into artificial time periods.
Full Disclosure Principle CORRECT ANSWERS Accounting principle that dictates that
companies disclose circumstances and events that make a difference to financial
statement users.
Revenue Recognition Principle CORRECT ANSWERS The principle that companies
recognize revenue in the accounting period in which the performance obligation is
satisfied.
