rutgers exam 1 financial accounting
questions with answers
Accounting consists of three basic activities - CORRECT
ANSWERS ✔✔identifies, records, and communicates
Standards that are generally accepted and universally
practiced. These standards indicate how to report
economic events. - CORRECT ANSWERS ✔✔Generally
Accepted Accounting Principles (GAAP)
(or cost principle) dictates that companies record assets
at their cost. - CORRECT ANSWERS ✔✔historical cost
principle
states that assets and liabilities should be reported at fair
value (the price received to sell an asset or settle a
liability). - CORRECT ANSWERS ✔✔fair value principle
requires that companies include in the accounting records
only transaction data that can be expressed in terms of
money. - CORRECT ANSWERS ✔✔MONETARY UNIT
ASSUMPTION
, requires that activities of the entity be kept separate and
distinct from the activities of its owner . - CORRECT
ANSWERS ✔✔economic entity assumption
owned by one person - CORRECT ANSWERS
✔✔Proprietorship
Owned by two or more people - CORRECT ANSWERS
✔✔partnership
Ownership divided into shares - CORRECT ANSWERS
✔✔corporation
Basic Accounting Equation - CORRECT ANSWERS
✔✔Assets = Liabilities + Stockholders' Equity
Examples of Assets - CORRECT ANSWERS ✔✔cash,
accounts receivable, supplies, inventory
Examples of Liabilities - CORRECT ANSWERS ✔✔Accounts
payable, notes payable, salaries and wages payable,
sales and real estate taxes payable, etc.
Stockholders' Equity - CORRECT ANSWERS ✔✔common
stock and retained earnings
questions with answers
Accounting consists of three basic activities - CORRECT
ANSWERS ✔✔identifies, records, and communicates
Standards that are generally accepted and universally
practiced. These standards indicate how to report
economic events. - CORRECT ANSWERS ✔✔Generally
Accepted Accounting Principles (GAAP)
(or cost principle) dictates that companies record assets
at their cost. - CORRECT ANSWERS ✔✔historical cost
principle
states that assets and liabilities should be reported at fair
value (the price received to sell an asset or settle a
liability). - CORRECT ANSWERS ✔✔fair value principle
requires that companies include in the accounting records
only transaction data that can be expressed in terms of
money. - CORRECT ANSWERS ✔✔MONETARY UNIT
ASSUMPTION
, requires that activities of the entity be kept separate and
distinct from the activities of its owner . - CORRECT
ANSWERS ✔✔economic entity assumption
owned by one person - CORRECT ANSWERS
✔✔Proprietorship
Owned by two or more people - CORRECT ANSWERS
✔✔partnership
Ownership divided into shares - CORRECT ANSWERS
✔✔corporation
Basic Accounting Equation - CORRECT ANSWERS
✔✔Assets = Liabilities + Stockholders' Equity
Examples of Assets - CORRECT ANSWERS ✔✔cash,
accounts receivable, supplies, inventory
Examples of Liabilities - CORRECT ANSWERS ✔✔Accounts
payable, notes payable, salaries and wages payable,
sales and real estate taxes payable, etc.
Stockholders' Equity - CORRECT ANSWERS ✔✔common
stock and retained earnings
