Principle of Financial Accounting: Final
Exam Questions With Solutions 100%
Correct
Revenues in flows of cash or increases in other assets or the settlement of liabilities during
a period, from delivering or producing goods
Balance Sheet Financial statement that is listing of the entity's assets, liabilities, and
stockholders equity
Assets=Liabilities+Stockholders Equity
Horizontal Model represents the balance sheet and income statement relationship
Assets=Liabilities+Stockholders Equity+Revenues-Expenses
Income Statement Summarizes the entity's revenues, expenses, gains, and losses for a time
period
, Principle of Financial Accounting: Final
Exam Questions With Solutions 100%
Correct
Depreciation process of recognizing the cost of an asset that is used up over its useful life
of the entity
Dividend distribution of earnings to the stockholders of a corporation
Financial Leverage the use of debt that causes a difference between ROI & ROE
Earned Revenue Entity has completed the activities it must perform to be entitled to the
revenue bemefits
Realization Revenue product or service has been exchanged for cash, claims to cash or an
asset that is convertible to a known amount of cash
Current Assets cash & equivalents, short-term marketable securities, AR, Notes
Receivable, Inventories, prepaid expenses
Exam Questions With Solutions 100%
Correct
Revenues in flows of cash or increases in other assets or the settlement of liabilities during
a period, from delivering or producing goods
Balance Sheet Financial statement that is listing of the entity's assets, liabilities, and
stockholders equity
Assets=Liabilities+Stockholders Equity
Horizontal Model represents the balance sheet and income statement relationship
Assets=Liabilities+Stockholders Equity+Revenues-Expenses
Income Statement Summarizes the entity's revenues, expenses, gains, and losses for a time
period
, Principle of Financial Accounting: Final
Exam Questions With Solutions 100%
Correct
Depreciation process of recognizing the cost of an asset that is used up over its useful life
of the entity
Dividend distribution of earnings to the stockholders of a corporation
Financial Leverage the use of debt that causes a difference between ROI & ROE
Earned Revenue Entity has completed the activities it must perform to be entitled to the
revenue bemefits
Realization Revenue product or service has been exchanged for cash, claims to cash or an
asset that is convertible to a known amount of cash
Current Assets cash & equivalents, short-term marketable securities, AR, Notes
Receivable, Inventories, prepaid expenses
