BASIC Accounting EXAM
[VERIFIED QUESTION AND
ANSWERS]
B. Asset= Liabilities + Equity - ANSWERS-What is the basic accounting equation?
a. A - L - E
b. A=L+E
c. A+L=E
d. A-L+R
C. Identification, recording, communication - ANSWERS-The accounting process is correctly
sequenced as:
a. identification, communication, recording
b. Recording, communication, identification
c. identification, recording, communication
d. communication, recording, identification
A. Identifying economic events - ANSWERS-Communication of economic events is a part of the
accounting process that involves:
a. Identifying economic events
, b. quantifying transactions into dollars and cents
c. recording and classifying information
d. preparing accounting reports
A. Historical Cost Principle - ANSWERS-ABS Company purchased land in 2004 for $250,000. In
2016, in purchased a nearly identical parcel of land for $500,000. In its 2016 balance sheet, ABC
Company valued these two parcels of land at a combined value of $1,000,000. By reporting the
land in this manner, ABC Company has violated:
A. Historical Cost Principle
B. Convergence
C. Economic entity assumption
D. Fair Value Principle
B. Standards that indicate how to report economic events - ANSWERS-Generally accepted
accounting principles are:
A: Income tax regulations of the IRS
B. Standards that indicate how to report economic events
C. Theories that are based on physical laws of the universe
D. Principles that have bee proven correct by academic researchers
Net Income - ANSWERS-Revenue - Expenses
2,3,4,6,7,10 - ANSWERS-Which if the accounts would appear on a balance Sheet?
1. Rent expense
2. Equipment
3. Accounts Payable
4. Common Stock
[VERIFIED QUESTION AND
ANSWERS]
B. Asset= Liabilities + Equity - ANSWERS-What is the basic accounting equation?
a. A - L - E
b. A=L+E
c. A+L=E
d. A-L+R
C. Identification, recording, communication - ANSWERS-The accounting process is correctly
sequenced as:
a. identification, communication, recording
b. Recording, communication, identification
c. identification, recording, communication
d. communication, recording, identification
A. Identifying economic events - ANSWERS-Communication of economic events is a part of the
accounting process that involves:
a. Identifying economic events
, b. quantifying transactions into dollars and cents
c. recording and classifying information
d. preparing accounting reports
A. Historical Cost Principle - ANSWERS-ABS Company purchased land in 2004 for $250,000. In
2016, in purchased a nearly identical parcel of land for $500,000. In its 2016 balance sheet, ABC
Company valued these two parcels of land at a combined value of $1,000,000. By reporting the
land in this manner, ABC Company has violated:
A. Historical Cost Principle
B. Convergence
C. Economic entity assumption
D. Fair Value Principle
B. Standards that indicate how to report economic events - ANSWERS-Generally accepted
accounting principles are:
A: Income tax regulations of the IRS
B. Standards that indicate how to report economic events
C. Theories that are based on physical laws of the universe
D. Principles that have bee proven correct by academic researchers
Net Income - ANSWERS-Revenue - Expenses
2,3,4,6,7,10 - ANSWERS-Which if the accounts would appear on a balance Sheet?
1. Rent expense
2. Equipment
3. Accounts Payable
4. Common Stock
