ACCOUNTING PRINCIPLES 15TH EDITION
QUESTIONS AND SOLUTIONS GRADED A+
◉ Accounting equation.
Answer: Assets = Liabilities + Equity (balance sheet equation)
◉ Assets.
Answer: Resources a business owns or controls.
◉ Audit.
Answer: Analysis and report of an organization's accounting system,
its records, and its reports using various tests.
◉ Auditor.
Answer: Individuals hired to review financial reports and
information systems.
◉ Balance sheet.
Answer: Financial statement that lists types and dollar amounts of
assets, liabilities, and equity at a specific date.
◉ Business entity assumption.
, Answer: Principle that requires a business to be accounted for
separately from its owner and from any other entity.
◉ Common stock.
Answer: Corporation's basic ownership share (capital stock)
◉ Conceptual framework.
Answer: The basic concepts that underlie the preparation and
presentation of financial statements for external users.
◉ Corporation.
Answer: Business that is a separate legal entity under state or
federal laws with owners called shareholders or stockholders.
◉ Cost-benefit constraint.
Answer: The notion that the benefit of a disclosure exceeds the cost
of that disclosure.
◉ Cost principle.
Answer: Prescribes financial statement information to be based on
actual costs incurred in business transactions.
◉ Consumer Protection Act.
QUESTIONS AND SOLUTIONS GRADED A+
◉ Accounting equation.
Answer: Assets = Liabilities + Equity (balance sheet equation)
◉ Assets.
Answer: Resources a business owns or controls.
◉ Audit.
Answer: Analysis and report of an organization's accounting system,
its records, and its reports using various tests.
◉ Auditor.
Answer: Individuals hired to review financial reports and
information systems.
◉ Balance sheet.
Answer: Financial statement that lists types and dollar amounts of
assets, liabilities, and equity at a specific date.
◉ Business entity assumption.
, Answer: Principle that requires a business to be accounted for
separately from its owner and from any other entity.
◉ Common stock.
Answer: Corporation's basic ownership share (capital stock)
◉ Conceptual framework.
Answer: The basic concepts that underlie the preparation and
presentation of financial statements for external users.
◉ Corporation.
Answer: Business that is a separate legal entity under state or
federal laws with owners called shareholders or stockholders.
◉ Cost-benefit constraint.
Answer: The notion that the benefit of a disclosure exceeds the cost
of that disclosure.
◉ Cost principle.
Answer: Prescribes financial statement information to be based on
actual costs incurred in business transactions.
◉ Consumer Protection Act.
