Intermediate Accounting Question and Answers 2024 final exam

Intermediate Accounting Question and Answers 2024 final exam Which of the following statements is true regarding accounting information systems? The kind of information that management requires of an accounting system will vary depending on the type of firm. An external event involving a transfer or exchange between two or more entities or parties is called a(n) transaction Factors that shape an accounting system include the All of the above (nature, size, volume) An example of a temporary account is Salary expense Which of the following is correct Equity = assets - liabilities The accounting equation must remain in balance throughout each step in the accounting cycle Which of the following criteria does NOT have to be met before an event or transaction should be recorded for accounting purposes? The event or transaction must be an external event Which of the following is an internal event? Using raw materials in production The book of original entry transactions and other selected events are first recorded is called the Journal The debit and credit analysis of a transaction normally takes place When the trial balance is prepared Performing a service for a client on account will Increase an asset and increase equity The account credited for a receipt of cash on account is Accounts receivable Some events are not recorded in the accounting information system because their measurement is too complex The double-entry accounting system means the dual effect of each transaction is recorded with debits and credits of equal amount Which of the following criteria must be met before an event or item should be recorded for financial purposes? The event or item is an element A trial balance Is a list of all the accounts and their balances at a specific date