Accy 201 - Chapters 1, 2, and 3 - Exam 1 || 100%
SOLVED!!
Assets, Expenses, Dividends correct answers What accounts have normal debit balances?
Liabilities, Revenues, Common Stock, Retained Earnings correct answers What accounts
have normal credit balances?
Accounting correct answers identify, record, and communicate relevant, reliable and
comparable info about an organization's business activities
Measurement/Cost Principle correct answers prescribes that accounting info is based on
actual cost (with a potential for subsequent adjustments to market). Cost is measured on a
cash or equal-to-cash basis. This means if cash is given for service, its cost is measured as the
amount of cash paid.
Revenue Recognition Principle correct answers provides guidance on when a company must
recognize revenue. To recognize revenue means to record it.
1) Revenue is recognized when earned.
2) Proceeds from selling products and services need not be in cash.
3) Revenue is measured by the cash received plus the cash value of any other items received.
Expense Recognition/Matching Principle correct answers prescribes that a company records
the expenses it incurred to generate the revenue reported.
Full Disclosure Principle correct answers prescribes that a company report the details behind
financial statements that would impact users' decisions.
Going-concern assumption correct answers means that accounting information reflects a
presumption that the business will continue operating instead of being closed or sold.
Monetary unit assumption correct answers means that we can express transactions and events
in monetary units.
Time period assumption correct answers presumes that the life of a company can be divided
into time periods, such as months and years, and that useful reports can be prepared for those
periods.
Business entity assumption correct answers means that a business is accounted for separately
from other business entities, including its owner.
Materiality constraint correct answers prescribes that only information with benefit of
disclosure greater than the costs of providing it need be disclosed.
Common stock correct answers reflects inflows of sources such as cash and other net assets
from stockholders in exchange for stock
Dividends correct answers outflow of resources such as cash and other assets to stockholders,
which reduce equity
SOLVED!!
Assets, Expenses, Dividends correct answers What accounts have normal debit balances?
Liabilities, Revenues, Common Stock, Retained Earnings correct answers What accounts
have normal credit balances?
Accounting correct answers identify, record, and communicate relevant, reliable and
comparable info about an organization's business activities
Measurement/Cost Principle correct answers prescribes that accounting info is based on
actual cost (with a potential for subsequent adjustments to market). Cost is measured on a
cash or equal-to-cash basis. This means if cash is given for service, its cost is measured as the
amount of cash paid.
Revenue Recognition Principle correct answers provides guidance on when a company must
recognize revenue. To recognize revenue means to record it.
1) Revenue is recognized when earned.
2) Proceeds from selling products and services need not be in cash.
3) Revenue is measured by the cash received plus the cash value of any other items received.
Expense Recognition/Matching Principle correct answers prescribes that a company records
the expenses it incurred to generate the revenue reported.
Full Disclosure Principle correct answers prescribes that a company report the details behind
financial statements that would impact users' decisions.
Going-concern assumption correct answers means that accounting information reflects a
presumption that the business will continue operating instead of being closed or sold.
Monetary unit assumption correct answers means that we can express transactions and events
in monetary units.
Time period assumption correct answers presumes that the life of a company can be divided
into time periods, such as months and years, and that useful reports can be prepared for those
periods.
Business entity assumption correct answers means that a business is accounted for separately
from other business entities, including its owner.
Materiality constraint correct answers prescribes that only information with benefit of
disclosure greater than the costs of providing it need be disclosed.
Common stock correct answers reflects inflows of sources such as cash and other net assets
from stockholders in exchange for stock
Dividends correct answers outflow of resources such as cash and other assets to stockholders,
which reduce equity
