TCC Accounting Exam 1, Questions and answers, 100% Verified Accurate.

TCC Accounting Exam 1, Questions and answers, 100% Verified Accurate. the accounting process is correctly sequenced as - -identification, recording, communication generally accepted accounting principles are - -standards that indicate how to report economic events the assumption that the unit of measure remains sufficiently constant over time is part of the - -monetary unit assumption a basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as - -economic entity assumption bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process? - -recording the normal balance of the account is the - -side which increases the amount an account consists of - -a title, a debit side, and a credit side an account also consists of - -three parts a T-account is - -a way of depicting the basic form of an account for the basic accounting equation to stay in balance, each transaction recorded must - -affect two or more accounts the adjustment for depreciation is an example of - -apportioning two costs between two or more periods the revenue recognition principle dictates that revenue should be recognized in the accounting records - -when it is earned the matching principle matches - -expenses with revenues adjusting entries are required - -every time financial statements are prepared adjusting entries are also required - -because some costs expire with the passage of time and have not yet been journalized when using a worksheet, adjusting entries are journalized - -after the worksheet is completed and after financial statements have been prepared if the total debit column exceeds the total credit column of the income statement columns on a worksheet, then the company - -has suffered a net loss for the period closing entries are necessary for - -temporary accounts only assuming that there is a net loss for the period, debits equal credits in all but which section of the worksheet? - -Income statement columns each of the following accounts is closed to income summary except - -dividends two categories of expenses for merchandising companies are - -cost of goods sold and operating expenses sales revenue less cost of goods sold is called - -gross profit cost of goods sold is determined only at the end of the accounting period in - -a periodic inventory system which of the following is a true statement about inventory systems? - -perpetual inventory systems require more detailed inventory records Bryan Company purchased merchandise from the Cates Company with freight terms of FOB shipping point. the freight costs will be paid by the - -buyer In a period of rising prices FIFO will have - -lower cost of goods sold than LIFO Under the LCM approach, the market value is defined as - -current replacement cost The inventory turnover ration is computed by dividing cost of goods sold by - -average inventory Inventories affect - -both the balance sheet and the income statement if goods in transit are shipped FOB destinationn - -the seller has legal title to the goods until they are delivered accounting information is relevant if it - -has either predictive of feed back value accounting information should be verifiable in order to enhance - -reliability the economic entity assumption states that - -economic events can be the revenue recognition principle dictates that revenue should be recognized in the accounting period in which it is - -earned the matching principle states that - -expenses should be matched internal controls are concerned with - -safeguarding assets companies that are subject to, but fail to comply with, the sarbanes-oxley act of 2002 - -may be subject to fines the control principle related to not having the same person authorize and pay for goods is known as - -segregation of duties Joe is a warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. an asseessment of this situation incates - -segregation of duties is violated the entry to replenish a petty cash fund includes a credit to - -cash under the allowance method, writing off an uncollectible account - -affects only balance sheet accounts when an account becomes uncollectable and must be written odd - -accounts receivable should be credited