ACC 221 questions chapter 1,2,3(100% Verified)
what is the primary objective of accounting? correct answers to provide information useful in
making investment and credit decisions
The assumption by accountants that a business will continue to operate indefinitely, unless
specific evidence suggests otherwise, is called the correct answers Going concern assumption
What organization has the legal power to set U.S. accounting standards? correct answers
securities and exchange commission
Provides the general framework for determining when information is included in financial
statements and how this information is to be prepared and presented correct answers Generally
accepted accounting principles
refers to a set of policies and procedures designed provide reasonable assurance that financial are
reliable and in compliance with appropriate laws and regulations correct answers internal control
What would correctly describe the accounting equation? correct answers Assets equal liabilities
plus owners' equity
increases in a company's assets from its profit related activities correct answers revenues
What would be reported on the income statement? correct answers revenues minus expenses
equals net income
What would not be a category reported on the statement of cash flow? correct answers cash flow
from borrowing activities
what would cause revenue to be recorded in the accounting records? correct answers performing
a service for or providing a product to a customer
what is true regarding recording transactions in accounting records? correct answers Every
transaction affects the accounting equation and at least two accounts
refer to a set of policies and procedures designed to provide reasonable assurance that financial
reports are reliable and in compliance with appropriate laws and regulations correct answers
internal controls
in order to be recorded in the accounting system, an economic activity must be _______ and
meet the definition of asset, liability, owners' equity, revenue or expense correct answers
measurable
What is the appropriate definition of assets? correct answers a resource that represents a probable
future economic benefit to the business
what is the primary objective of accounting? correct answers to provide information useful in
making investment and credit decisions
The assumption by accountants that a business will continue to operate indefinitely, unless
specific evidence suggests otherwise, is called the correct answers Going concern assumption
What organization has the legal power to set U.S. accounting standards? correct answers
securities and exchange commission
Provides the general framework for determining when information is included in financial
statements and how this information is to be prepared and presented correct answers Generally
accepted accounting principles
refers to a set of policies and procedures designed provide reasonable assurance that financial are
reliable and in compliance with appropriate laws and regulations correct answers internal control
What would correctly describe the accounting equation? correct answers Assets equal liabilities
plus owners' equity
increases in a company's assets from its profit related activities correct answers revenues
What would be reported on the income statement? correct answers revenues minus expenses
equals net income
What would not be a category reported on the statement of cash flow? correct answers cash flow
from borrowing activities
what would cause revenue to be recorded in the accounting records? correct answers performing
a service for or providing a product to a customer
what is true regarding recording transactions in accounting records? correct answers Every
transaction affects the accounting equation and at least two accounts
refer to a set of policies and procedures designed to provide reasonable assurance that financial
reports are reliable and in compliance with appropriate laws and regulations correct answers
internal controls
in order to be recorded in the accounting system, an economic activity must be _______ and
meet the definition of asset, liability, owners' equity, revenue or expense correct answers
measurable
What is the appropriate definition of assets? correct answers a resource that represents a probable
future economic benefit to the business
