Principles of Accounting Final Exam (2024) || Questions & Answers (Graded A+)

Principles of Accounting Final Exam (2024) || Questions & Answers (Graded A+) Principles of Accounting Final Exam (2024) || Questions & Answers (Graded A+) Cash Receipts from Customers - ANSWER - net sales + beginning accounts receivable - ending accounts receivable Cash Payments To Suppliers - ANSWER - +Purchases+Ending Inventory−Beginning Inventory+Beginning Accounts Payable−Ending Accounts Payable Cash Payments to Employees - ANSWER - + Beginning Salaries Payable − Ending Salaries Payable + Salaries Expense Cash Payments for Purchase of Prepaid Assets - ANSWER - + Ending Prepaid Rent, Prepaid Insurance etc. + Expired Rent, Expired Insurance etc. − Beginning Prepaid Rent, Prepaid Insurance etc. Interest Payments - ANSWER - + Beginning Interest Payable − Ending Interest Payable + Interest Expense Income Tax Payments - ANSWER - + Beginning Income Tax Payable − Ending Income Tax Payable + Income Tax Expense Accrual Concept - ANSWER - Business transactions are recorded when they occur and not when the related payments are received or made. This concept is called accrual basis of accounting and it is fundamental to the usefulness of financial accounting information. Going Concern Concept - ANSWER - Financial statements are prepared assuming that the company is a going concern which means that the company intends to continue its business and is able to do so. The status of going concern is important because if the company is a going concern it has to follow the generally accepted accounting standards. The auditors of the company determine whether the company is a going concern or not at the date of the financial statements. Business Entity Concept - ANSWER - It means that personal transactions of owners are treated separately from those of the business.