ACCY 201 BURNEY TEST 1 QUESTIONS & ACCURATE DETAILED
ANSWERS VERIFIED ANSWERS GRADED A+ NEWEST A+ SCORE
REVIEW
Everything dealt with is in a single money unit - --Answers----
Describe the Monetary Unity assumption.
Allows a company to report its economic activities on a regular
basis for a specific period of time - --Answers----Describe the
Time Period Assumption.
Limits the economic data in financial reports to that directly
related to the activities of the business. AKA, the business is
viewed as a separate entity from its owners, creditors, etc.
Accountant would only record business info, not owners' debt or
anything else. - --Answers----Describe the Business Entity
assumption.
Assumes that the business will continue to operate in the future-
- justifies reporting items such as equipment, buildings, and land
at their initial historical cost rather than liquidation. - --
Answers----Describe the Going Concern assumption.
Measurement,
Historical Cost,
Revenue Recognition,
Expense Recognition,
(Full Disclosure) - --Answers----What are the Accounting
Principles.
Determines the amount that will be recorded and recorded.
Requires that amounts be objective and verifiable. - --Answers-
---Describe the Measurement principle.
, Arm's length transactions - --Answers----transactions between
2 independent parties
Revenue - --Answers----the amount earned for selling
goods/services to customers.
Determines when revenue is recorded, the amount the revenue
is recorded for - --Answers----Describe the Revenue
Recognition Principle.
Expense - --Answers----the amounts used to generate revenue
Requires that expense be recorded in the same period as the
related revenue it matches with - --Answers----Describe the
Expense Recognition
Assets (cash, land, equipment, buildings) - --Answers----
resources owned by a business
Liabilities - --Answers----the rights of creditors and the debts
of a business
Equity - --Answers----the rights of owners
Assets = Liabilities + Owner's Equity - --Answers----What is the
accounting equation?
Common stock - --Answers----shares of ownership distributed
to investors of a corporation
Proprietorship - --Answers----business owned by one
individual
ANSWERS VERIFIED ANSWERS GRADED A+ NEWEST A+ SCORE
REVIEW
Everything dealt with is in a single money unit - --Answers----
Describe the Monetary Unity assumption.
Allows a company to report its economic activities on a regular
basis for a specific period of time - --Answers----Describe the
Time Period Assumption.
Limits the economic data in financial reports to that directly
related to the activities of the business. AKA, the business is
viewed as a separate entity from its owners, creditors, etc.
Accountant would only record business info, not owners' debt or
anything else. - --Answers----Describe the Business Entity
assumption.
Assumes that the business will continue to operate in the future-
- justifies reporting items such as equipment, buildings, and land
at their initial historical cost rather than liquidation. - --
Answers----Describe the Going Concern assumption.
Measurement,
Historical Cost,
Revenue Recognition,
Expense Recognition,
(Full Disclosure) - --Answers----What are the Accounting
Principles.
Determines the amount that will be recorded and recorded.
Requires that amounts be objective and verifiable. - --Answers-
---Describe the Measurement principle.
, Arm's length transactions - --Answers----transactions between
2 independent parties
Revenue - --Answers----the amount earned for selling
goods/services to customers.
Determines when revenue is recorded, the amount the revenue
is recorded for - --Answers----Describe the Revenue
Recognition Principle.
Expense - --Answers----the amounts used to generate revenue
Requires that expense be recorded in the same period as the
related revenue it matches with - --Answers----Describe the
Expense Recognition
Assets (cash, land, equipment, buildings) - --Answers----
resources owned by a business
Liabilities - --Answers----the rights of creditors and the debts
of a business
Equity - --Answers----the rights of owners
Assets = Liabilities + Owner's Equity - --Answers----What is the
accounting equation?
Common stock - --Answers----shares of ownership distributed
to investors of a corporation
Proprietorship - --Answers----business owned by one
individual
