Accounting 211 questions with correct answers

Accounting 211 questions with correct answersGenerally Accepted Accounting Principles (GAAP) - correct answer aims to make information relevant, reliable, and comparable Accounting Equation - correct answer Assets=Liabilities Equity Assets - correct answer resources a company owns or controls, these resources are expected to yield future benefits Liabilities - correct answer Creditors' claims on an organization's assets; involves a probable future payment of assets, products, or services that a company is obligated to make due to past transactions or events. Equity - correct answer the owner's claim on assets, and is equal to assets minus liabilities Income Statement - correct answer describes a company's revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities Statement of Owner's Equity - correct answer explains changes in equity from net income (or loss) and from any owner investments and withdrawals over a period of time Balance Sheet - correct answer describes a company's financial position (types and amounts of assets, liabilities, and equity) at a point in time Statement of Cash Flows - correct answer identifies cash inflows (receipts) and cash outflows (payments) over a period of time. Account - correct answer Record within an accounting system in which increases and decreases are entered and stored in a specific asset, liability, equity, revenue, or expense