Acct 201a CSUF Hoffman CORRECT
100%
Trial Balance - ANSWER1. Lists accounts and their balance at a given time
2. Mathematical equality of debits and credits after posting
3. Uncovers errors in journalizing and posting
Adjustment for supplies used - ANSWERDebit supplies expense
Credit supplies
Periodicity Assumption - ANSWERAn assumption that the economic life of a
business can be divided into artificial time periods.
Full Disclosure Principle - ANSWERAccounting principle that dictates that
companies disclose circumstances and events that make a difference to financial
statement users.
What happens when shareholders invest in a company? - ANSWER1. Stockholder's
Equity increases
2. Cash increases
3. Cash Debit
4. Common Stock Credit
Monetary Unit Assumption - ANSWERAn assumption that requires that only those
things that can be expressed in money are included in the accounting records.
Cost Constraint - ANSWERConstraint that weighs the cost that companies will incur
to provide the information against the benefit that financial statement users will gain
from having the information available.
Economic Entity Assumption - ANSWERAn assumption that every economic entity
can be separately identified and accounted for.
Going Concern Assumption - ANSWERThe assumption that the company will
continue in operation for the foreseeable future.
Unearned Revenue Adjustment - ANSWERAdvance collection:
1. Debit cash
2. Credit Unearned Revenue
Revenue Recognition Principle - ANSWERThe principle that companies recognize
revenue in the accounting period in which the performance obligation is satisfied.
Materiality - ANSWERwhether an item is large enough to likely influence the decision
of an investor or creditor
intangible assets - ANSWERassets that do not have physical substance
100%
Trial Balance - ANSWER1. Lists accounts and their balance at a given time
2. Mathematical equality of debits and credits after posting
3. Uncovers errors in journalizing and posting
Adjustment for supplies used - ANSWERDebit supplies expense
Credit supplies
Periodicity Assumption - ANSWERAn assumption that the economic life of a
business can be divided into artificial time periods.
Full Disclosure Principle - ANSWERAccounting principle that dictates that
companies disclose circumstances and events that make a difference to financial
statement users.
What happens when shareholders invest in a company? - ANSWER1. Stockholder's
Equity increases
2. Cash increases
3. Cash Debit
4. Common Stock Credit
Monetary Unit Assumption - ANSWERAn assumption that requires that only those
things that can be expressed in money are included in the accounting records.
Cost Constraint - ANSWERConstraint that weighs the cost that companies will incur
to provide the information against the benefit that financial statement users will gain
from having the information available.
Economic Entity Assumption - ANSWERAn assumption that every economic entity
can be separately identified and accounted for.
Going Concern Assumption - ANSWERThe assumption that the company will
continue in operation for the foreseeable future.
Unearned Revenue Adjustment - ANSWERAdvance collection:
1. Debit cash
2. Credit Unearned Revenue
Revenue Recognition Principle - ANSWERThe principle that companies recognize
revenue in the accounting period in which the performance obligation is satisfied.
Materiality - ANSWERwhether an item is large enough to likely influence the decision
of an investor or creditor
intangible assets - ANSWERassets that do not have physical substance
