Peregrine accounting and finance || Possible Questions Accurately
Answered.
Which financial statement reports the revenues and expenses for a period of time such as year or
a month? correct answers Income Statement
Which financial statement reports the assets, liabilities, and stockholders' (owner's) equity at a
specific date? correct answers Balance sheet
Under the accrual basis of accounting, revenues are reported in the accounting period when
which of the following occurs? correct answers Services or gods have been delivered
Under the accrual basis of accounting, expenses are reported in the accounting period when
which of the following occurs? correct answers an expense matches the revenues or is used up
Revenue minus expenses equals _____. correct answers net income
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the
balance sheet and are referred to as
_________ correct answers assets
Assets are usually reported on the balance sheet at which amount? correct answers cost
Cost principle correct answers A principle that states that acquired assets and services should be
recorded at their actual cost.
Obligations (amounts owed) are reported on the balance sheet and are referred to as
________ correct answers liabilities
, Liabilities often have the word
__________
in their account title correct answers payables
Unearned Revenues is what type of account? correct answers Liability (The company that is to
perform the service or is to deliver the product has received the cash in advance and therefore
has an obligation (liability) to deliver the service or the product.)
Accounting entries involve a minimum of how many accounts? correct answers Two - because of
the double entry system, every transaction will affect at least two accounts
Assets minus liabilities equals
_________ correct answers stockholders' equity or owner's equity
(net assets if a nonprofit)
Which term is associated with "left" or "left side"? correct answers Debit
Which term is associated with "right" or "right side"? correct answers Credit
When cash is received, the account Cash will be _________ correct answers Debited
When a company pays a bill, the account Cash will be __________. correct answers Credited
What will usually cause an asset account to increase? correct answers Debit
What will usually cause the liability account Accounts Payable to increase? correct answers
Credit
Answered.
Which financial statement reports the revenues and expenses for a period of time such as year or
a month? correct answers Income Statement
Which financial statement reports the assets, liabilities, and stockholders' (owner's) equity at a
specific date? correct answers Balance sheet
Under the accrual basis of accounting, revenues are reported in the accounting period when
which of the following occurs? correct answers Services or gods have been delivered
Under the accrual basis of accounting, expenses are reported in the accounting period when
which of the following occurs? correct answers an expense matches the revenues or is used up
Revenue minus expenses equals _____. correct answers net income
Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the
balance sheet and are referred to as
_________ correct answers assets
Assets are usually reported on the balance sheet at which amount? correct answers cost
Cost principle correct answers A principle that states that acquired assets and services should be
recorded at their actual cost.
Obligations (amounts owed) are reported on the balance sheet and are referred to as
________ correct answers liabilities
, Liabilities often have the word
__________
in their account title correct answers payables
Unearned Revenues is what type of account? correct answers Liability (The company that is to
perform the service or is to deliver the product has received the cash in advance and therefore
has an obligation (liability) to deliver the service or the product.)
Accounting entries involve a minimum of how many accounts? correct answers Two - because of
the double entry system, every transaction will affect at least two accounts
Assets minus liabilities equals
_________ correct answers stockholders' equity or owner's equity
(net assets if a nonprofit)
Which term is associated with "left" or "left side"? correct answers Debit
Which term is associated with "right" or "right side"? correct answers Credit
When cash is received, the account Cash will be _________ correct answers Debited
When a company pays a bill, the account Cash will be __________. correct answers Credited
What will usually cause an asset account to increase? correct answers Debit
What will usually cause the liability account Accounts Payable to increase? correct answers
Credit
