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
, Objectivity Principle - ANS-Statement info must be
supported by Unbiased evidence
Revenue Recognition Principle - ANS-Revenue is recognized
when Earned ie.selling products/providing service for
cash/credit
Time Period(assumption) - ANS-Life of a company divided
into time periods with Useful reports for each ie. monthly,
quarterly, fiscal/calendar years
Income Statement - ANS-Revenues - Expenses = Net
Income
Net Income=excess revenues over expenses(profit)
Net loss=excess expenses over revenues
Statement of Owners Equity - ANS-Shows beginning
OE(capital), events that increase it(owner investments and
Net Income), events that decrease it(withdraws and net
loss)
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
, Objectivity Principle - ANS-Statement info must be
supported by Unbiased evidence
Revenue Recognition Principle - ANS-Revenue is recognized
when Earned ie.selling products/providing service for
cash/credit
Time Period(assumption) - ANS-Life of a company divided
into time periods with Useful reports for each ie. monthly,
quarterly, fiscal/calendar years
Income Statement - ANS-Revenues - Expenses = Net
Income
Net Income=excess revenues over expenses(profit)
Net loss=excess expenses over revenues
Statement of Owners Equity - ANS-Shows beginning
OE(capital), events that increase it(owner investments and
Net Income), events that decrease it(withdraws and net
loss)
