Acct 211 Quiz #1 well answered to pass

Acct 211 Quiz #1

Measurement Principle - correct answer (also called the cost principle) means that accounting
information is based on actual cost



Revenue Recognition Principle - correct answer Provides guidance on when a company must recognize
revenue



Matching Principle (expense recognition) - correct answer Prescribes that a company must record its
expenses incurred to generate the revenue



Full disclosure principle - correct answer Requires a company to report the details behind financial
statements that would impact a users decisions



Going-concern assumption - correct answer means that accounting information reflects a presumption
the business will continue operating



Monetary unit assumption - correct answer means we can express transactions in money



Time Period Assumption - correct answer presumes that the life of a company can be divided into time
periods, such as months and years



Business Entity Assumption - correct answer means that a business is accounted for separately from it's
owner or other business entities



Do sole proprietorship and partnership have unlimited liability? - correct answer Yes



Revenue-expenses-dividends= retained earnings - correct answer True