ACCOUNTING 101 EXAM WITH
COMPLETE SOLUTIONS 100%
GUARANTEED PASS
Faithful representation - Answer- desire to minimize errors and bias in financial
statements
Monetary unit assumption - Answer- all items for US companies must be converted to
US dollars for reporting purposes
Comparability - Answer- ability to easily evaluate one company's results relative to
another's
Cost constraint - Answer- weighing the cost of providing the info against the benefit to
the users of the financial statements
Relevance - Answer- the quality of info that indicated the info makes a difference in a
decision
Historical cost principle - Answer- belief that items should be reported on the balance
sheet at the price that was paid to acquire item
Consistency - Answer- a company's use of the same accounting principles and methods
from year to year
Economic entity assumption - Answer- a transaction such as a mortgage payment
belongs to the owner not to their company
Retained earnings statement - Answer- the financial statement that summarizes the
changes in retained earning for a specific period of time
The company's policy toward dividends and growth could best be determined by
examining this
Liabilities - Answer- debt and obligations of a business are referred
Net income results when - Answer- revenues > expenses
, Retained earnings at the end of the period is equal to - Answer- retained earnings at the
beginning of the period plus net income minus dividends
Income statement - Answer- presents the revenues and expenses for a specific period
of time
If the retained earnings account increases from the beginning of the year to the end of
the year, then - Answer- net income is greater than dividends
The retained earning statements would not show - Answer- revenues and expenses
Which financial statement is prepared first - Answer- income statment
Balance sheet shows - Answer- assets, liabilities, and stockholders' equity
ALOE
assets
liabilities
owner's equity
Payments to stockholders are called - Answer- dividends
Common stock is reported on the - Answer- balance sheet and retained earnings
statement
Stockholders' equity is comprised of - Answer- common stock and retained earnings
Where will accounts payable show up? - Answer- current liabs.
Where will revenue show up? - Answer- income or RE statement
Where will inventory show up? - Answer- current assets
Where will land show up? - Answer- non-current assets
Where will common stock show up? - Answer- stockholders' equity
Where will accounts receivable show up? - Answer- current assets
Where will investments in real estate show up? - Answer- non-current assets
Where will cash show up? - Answer- current assets
Where will taxes payable show up? - Answer- current liabs
Where will retained earnings show up? - Answer- stockholders' equity
COMPLETE SOLUTIONS 100%
GUARANTEED PASS
Faithful representation - Answer- desire to minimize errors and bias in financial
statements
Monetary unit assumption - Answer- all items for US companies must be converted to
US dollars for reporting purposes
Comparability - Answer- ability to easily evaluate one company's results relative to
another's
Cost constraint - Answer- weighing the cost of providing the info against the benefit to
the users of the financial statements
Relevance - Answer- the quality of info that indicated the info makes a difference in a
decision
Historical cost principle - Answer- belief that items should be reported on the balance
sheet at the price that was paid to acquire item
Consistency - Answer- a company's use of the same accounting principles and methods
from year to year
Economic entity assumption - Answer- a transaction such as a mortgage payment
belongs to the owner not to their company
Retained earnings statement - Answer- the financial statement that summarizes the
changes in retained earning for a specific period of time
The company's policy toward dividends and growth could best be determined by
examining this
Liabilities - Answer- debt and obligations of a business are referred
Net income results when - Answer- revenues > expenses
, Retained earnings at the end of the period is equal to - Answer- retained earnings at the
beginning of the period plus net income minus dividends
Income statement - Answer- presents the revenues and expenses for a specific period
of time
If the retained earnings account increases from the beginning of the year to the end of
the year, then - Answer- net income is greater than dividends
The retained earning statements would not show - Answer- revenues and expenses
Which financial statement is prepared first - Answer- income statment
Balance sheet shows - Answer- assets, liabilities, and stockholders' equity
ALOE
assets
liabilities
owner's equity
Payments to stockholders are called - Answer- dividends
Common stock is reported on the - Answer- balance sheet and retained earnings
statement
Stockholders' equity is comprised of - Answer- common stock and retained earnings
Where will accounts payable show up? - Answer- current liabs.
Where will revenue show up? - Answer- income or RE statement
Where will inventory show up? - Answer- current assets
Where will land show up? - Answer- non-current assets
Where will common stock show up? - Answer- stockholders' equity
Where will accounts receivable show up? - Answer- current assets
Where will investments in real estate show up? - Answer- non-current assets
Where will cash show up? - Answer- current assets
Where will taxes payable show up? - Answer- current liabs
Where will retained earnings show up? - Answer- stockholders' equity
