2024 Financial Accounting I NEWEST 2024 – 2025 PRACTICE EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES VERIFIED ANSWERS ALREADY GRADED A+

2024 Financial Accounting I NEWEST 2024 – 2025 PRACTICE EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES VERIFIED ANSWERS ALREADY GRADED A+ Accounting is an information measurement system that... - ANS-Identifies, records and communicates information about business activities by interpreting info and designing info systems to allow business to make better decisions The Accounting Equation is... - ANS-Assets=Liabilities + Owner's Equity $100 = $10 + $90 Assets - ANS-Everything a company owns Accounts Receivable - ANS-Assets created by selling goods/services on credit Liabilities - ANS-Debts created by purchasing goods/services on credit Accounts Payable - ANS-liabilities created by purchasing goods/services on credit Unearned Revenue - ANS-Liabilities created when a customer pays before the revenue is earned Owner's Equity - ANS-Owner's claims against assets Business Entity(assumption) - ANS-Every business accounted for separately from other entities, to include its owners Cost Principle - ANS-Accounting info based on actual cost Full Disclosure - ANS-Report all details of financial statements that could impact user's decisions;often in the footnotes Going-concern Principle - ANS-Info that reflects a presumption a business will continue operating Matching Principle - ANS-Requires expenses to be reported in the same period as the revenues earned Monetary unit Principle - ANS-Transactions to be expressed in monetary(money) units