ACCOUNTING 211 COMPLETE STUDY GUIDE
WITH SOLVED QUESTIONS
◉ The accounting concept that requires every business to be
accounted for separately from other business entities, including its
owner or owners is known as the.
Answer: Business Entity Assumption
◉ The primary objective of financial accounting is to.
Answer: Provide accounting information that serves external users
◉ The accounting concept that requires financial statement
information to be supported by independent, unbiased evidence is.
Answer: Objectivity Principle
◉ External users of accounting information include all of the
following except.
Answer: Purchasing Managers
◉ The rule that requires financial statements to reflect the
assumption that the business will continue operating instead of
being closed or sold, unless evidence shows that it will not continue,
is the.
,Answer: Going-concern Assumption
◉ If a company uses $1,300 of its cash to purchase supplies, the
effect on the accounting equation would be.
Answer: One asset increases $1,300 and another asset decreases
$1,300, causing no effect
◉ To include the personal assets and transactions of a business's
stockholders in the records and reports of the business would be in
conflict with the.
Answer: Business Entity Assumption
◉ Revenue is properly recognized.
Answer: upon completion of the sale or when services have been
performed and the business obtains the right to collect the sales
price
◉ Resources a company owns or controls that are expected to yield
future benefits are.
Answer: Assets
◉ If Houston Company billed a client for $10,000 of consulting work
completed, the accounts receivable asset increases by $10,000 and.
Answer: Revenue increases $10,000
, ◉ The basic financial statements include all of the following except.
Answer: Statement of changes in assets
◉ Salaries expense appears on which of the following statements?.
Answer: Income statement
◉ Prevor Corporation reports the following account balances at the
end of its first year of operation:
Accounts Payable $30,000
Accounts Receivable 16,500
Cash 14,000
Common Stock 20,000
Expenses 110,500
Land 40,000
Revenues 133,000
Supplies 2,000
Prevor's total liabilities equal:.
Answer: 30,000
WITH SOLVED QUESTIONS
◉ The accounting concept that requires every business to be
accounted for separately from other business entities, including its
owner or owners is known as the.
Answer: Business Entity Assumption
◉ The primary objective of financial accounting is to.
Answer: Provide accounting information that serves external users
◉ The accounting concept that requires financial statement
information to be supported by independent, unbiased evidence is.
Answer: Objectivity Principle
◉ External users of accounting information include all of the
following except.
Answer: Purchasing Managers
◉ The rule that requires financial statements to reflect the
assumption that the business will continue operating instead of
being closed or sold, unless evidence shows that it will not continue,
is the.
,Answer: Going-concern Assumption
◉ If a company uses $1,300 of its cash to purchase supplies, the
effect on the accounting equation would be.
Answer: One asset increases $1,300 and another asset decreases
$1,300, causing no effect
◉ To include the personal assets and transactions of a business's
stockholders in the records and reports of the business would be in
conflict with the.
Answer: Business Entity Assumption
◉ Revenue is properly recognized.
Answer: upon completion of the sale or when services have been
performed and the business obtains the right to collect the sales
price
◉ Resources a company owns or controls that are expected to yield
future benefits are.
Answer: Assets
◉ If Houston Company billed a client for $10,000 of consulting work
completed, the accounts receivable asset increases by $10,000 and.
Answer: Revenue increases $10,000
, ◉ The basic financial statements include all of the following except.
Answer: Statement of changes in assets
◉ Salaries expense appears on which of the following statements?.
Answer: Income statement
◉ Prevor Corporation reports the following account balances at the
end of its first year of operation:
Accounts Payable $30,000
Accounts Receivable 16,500
Cash 14,000
Common Stock 20,000
Expenses 110,500
Land 40,000
Revenues 133,000
Supplies 2,000
Prevor's total liabilities equal:.
Answer: 30,000
