Accy 201 Exam 1 Review || ANSWERS RATED 100%
CORRECT.
Going Concern Assumption correct answers the business is presumed to continue operating
into the foreseeable future
Revenue Recognition Principle correct answers revenue is recognized when goods or services
are provided to customers
Expense Recognition Principle correct answers a company records its expense incurred in the
same period as the revenue it generated
Buisness Entity Assumption correct answers a business is accounted for separately from other
business entities, including its owner
Monetary Unit Assumption correct answers transactions and events are expressed in
monetary, or money, units
cost priniciple correct answers accounting information is based on actual cost
Full Disclosure Principle correct answers a company reports the details behind financial
statements that would impact users' decisions
time period assumption correct answers the life of a company can be divided into time
periods, such as months and years
Balance sheet correct answers financial statement that presents a company's assets, liabilities,
and equity as of a given point in time
Liabilities correct answers claims on a company's assets made by creditors (external party)
balance sheet correct answers XYZ Co has cash of $250,000. Which financial statement
would this appear on?
Outlaw Co performed consulting services of $5,000 on account. Which journal entries should
be recorded? correct answers Dr: A/R, Cr: Unearned Revenue
ABC Co. purchased supplies on account for $1000. Which of Assets, Liab, and equity was
unaffected? correct answers Liabilities
Revenues = $500, Prepaid Expenses = $800, Unearned Revenues = $1,000, expenses = $200.
What is Net Income (loss) correct answers $300 (Net income = Revenues - expenses)
account not increased by a credit? correct answers retained earnings
What is the proper order of financial statement preparation? correct answers income
statement, retained earnings, balance
CORRECT.
Going Concern Assumption correct answers the business is presumed to continue operating
into the foreseeable future
Revenue Recognition Principle correct answers revenue is recognized when goods or services
are provided to customers
Expense Recognition Principle correct answers a company records its expense incurred in the
same period as the revenue it generated
Buisness Entity Assumption correct answers a business is accounted for separately from other
business entities, including its owner
Monetary Unit Assumption correct answers transactions and events are expressed in
monetary, or money, units
cost priniciple correct answers accounting information is based on actual cost
Full Disclosure Principle correct answers a company reports the details behind financial
statements that would impact users' decisions
time period assumption correct answers the life of a company can be divided into time
periods, such as months and years
Balance sheet correct answers financial statement that presents a company's assets, liabilities,
and equity as of a given point in time
Liabilities correct answers claims on a company's assets made by creditors (external party)
balance sheet correct answers XYZ Co has cash of $250,000. Which financial statement
would this appear on?
Outlaw Co performed consulting services of $5,000 on account. Which journal entries should
be recorded? correct answers Dr: A/R, Cr: Unearned Revenue
ABC Co. purchased supplies on account for $1000. Which of Assets, Liab, and equity was
unaffected? correct answers Liabilities
Revenues = $500, Prepaid Expenses = $800, Unearned Revenues = $1,000, expenses = $200.
What is Net Income (loss) correct answers $300 (Net income = Revenues - expenses)
account not increased by a credit? correct answers retained earnings
What is the proper order of financial statement preparation? correct answers income
statement, retained earnings, balance
