ACCT 301 EXAM WITH WELL VERIFIED
QUESTIONS AND ANSWERS|| GUARANTEED
PASS|| ALREADY GRADED A+|| LATEST
UPDATE
Which of the following is not a basic element of financial statements?
a. Assets
b. Balance sheet
c. Losses
d. Revenue - ANSWER-B
Which of the following basic elements of financial statements is more
associated with the
balance sheet than the income statement?
a. Equity
b. Revenue
c. Gains
d. Expenses - ANSWER-A
Issuance of common stock for cash affects which basic element of financial
statements?
a. Revenues
b. Losses
,c. Liabilities
d. Equity - ANSWER-D
Which of these basic elements of financial statements arises from peripheral or
incidental transactions?
a. Assets
b. Liabilities
c. Gains
d. Expenses - ANSWER-C
Which of the following is not a basic assumption underlying the financial
accounting structure?
a. Economic entity assumption
b. Going concern assumption
c. Periodicity assumption
d. Historical cost assumption - ANSWER-D
Which basic assumption is illustrated when a firm reports financial results on an
annual basis?
a. Economic entity assumption
b. Going concern assumption
c. Periodicity assumption
d. Monetary unit assumption - ANSWER-C
When is revenue generally recognized?
a. When cash is received
b. When the warranty expires
c. When production is completed
, d. When the company satisfies the performance obligation - ANSWER-D
Which of the following is a component of the revenue recognition principle?
a. Cash is received and the amount is material.
b. Recognition occurs when the performance obligation is satisfied.
c. Production is complete and there is an active market for the product.
d. Cash is realized or realizable and production is complete. - ANSWER-B
A company has a performance obligation when it agrees to
a. perform a service for a customer and receives cash payment.
b. sell a product to a customer after receiving payment.
c. perform a service or sell a product to a customer.
d. None of the answer choices are correct - ANSWER-C
Which of the following is not a required component of financial statements
prepared in accordance with generally accepted accounting principles?
a. President's letter to shareholders.
b. Balance sheet.
c. Income statement.
d. Notes to financial statements - ANSWER-A
Which assumption or principle requires that all information significant enough
to affect decisions of reasonably informed users should be reported in the
financial statements?
a. Matching.
b. Going concern.
c. Historical cost.
QUESTIONS AND ANSWERS|| GUARANTEED
PASS|| ALREADY GRADED A+|| LATEST
UPDATE
Which of the following is not a basic element of financial statements?
a. Assets
b. Balance sheet
c. Losses
d. Revenue - ANSWER-B
Which of the following basic elements of financial statements is more
associated with the
balance sheet than the income statement?
a. Equity
b. Revenue
c. Gains
d. Expenses - ANSWER-A
Issuance of common stock for cash affects which basic element of financial
statements?
a. Revenues
b. Losses
,c. Liabilities
d. Equity - ANSWER-D
Which of these basic elements of financial statements arises from peripheral or
incidental transactions?
a. Assets
b. Liabilities
c. Gains
d. Expenses - ANSWER-C
Which of the following is not a basic assumption underlying the financial
accounting structure?
a. Economic entity assumption
b. Going concern assumption
c. Periodicity assumption
d. Historical cost assumption - ANSWER-D
Which basic assumption is illustrated when a firm reports financial results on an
annual basis?
a. Economic entity assumption
b. Going concern assumption
c. Periodicity assumption
d. Monetary unit assumption - ANSWER-C
When is revenue generally recognized?
a. When cash is received
b. When the warranty expires
c. When production is completed
, d. When the company satisfies the performance obligation - ANSWER-D
Which of the following is a component of the revenue recognition principle?
a. Cash is received and the amount is material.
b. Recognition occurs when the performance obligation is satisfied.
c. Production is complete and there is an active market for the product.
d. Cash is realized or realizable and production is complete. - ANSWER-B
A company has a performance obligation when it agrees to
a. perform a service for a customer and receives cash payment.
b. sell a product to a customer after receiving payment.
c. perform a service or sell a product to a customer.
d. None of the answer choices are correct - ANSWER-C
Which of the following is not a required component of financial statements
prepared in accordance with generally accepted accounting principles?
a. President's letter to shareholders.
b. Balance sheet.
c. Income statement.
d. Notes to financial statements - ANSWER-A
Which assumption or principle requires that all information significant enough
to affect decisions of reasonably informed users should be reported in the
financial statements?
a. Matching.
b. Going concern.
c. Historical cost.
