FINANCIAL ACCOUNTING TEST 11 EXAM
REVIEW SOLVED QUESTIONS WITH ACCURATE
ANSWERS
◉ Monetary Unit Assumption.
Answer: An assumption that requires that only those things that can
be expressed in money are included in the accounting records.
◉ Economic Enity Assumption.
Answer: Requires activites of an entity be kept separate and distinct
from the activities of its owner and all other economic entities
◉ Forms of Business Ownership.
Answer: proprietorship, partnership, corporation
◉ Accounting Equation.
Answer: Assets = Liabilities + Stockholders' Equity
◉ Asset.
Answer: Anything of value that is owned
◉ Liabilities.
, Answer: Amounts owed to creditors or obligations
◉ Stockholders' Equity.
Answer: Ownership on corporation's total assets
◉ retianed earnings.
Answer: income that has been retained within the business
net income - dividends
◉ net income (lose).
Answer: Revenue - expenses
◉ revenue.
Answer: the increase in assets or decrease in liabilities resulting
from the sale of goods or the performance of services in the normal
course of business
◉ expenses.
Answer: The cost of assets consumed or services used in the process
of generating revenues.
REVIEW SOLVED QUESTIONS WITH ACCURATE
ANSWERS
◉ Monetary Unit Assumption.
Answer: An assumption that requires that only those things that can
be expressed in money are included in the accounting records.
◉ Economic Enity Assumption.
Answer: Requires activites of an entity be kept separate and distinct
from the activities of its owner and all other economic entities
◉ Forms of Business Ownership.
Answer: proprietorship, partnership, corporation
◉ Accounting Equation.
Answer: Assets = Liabilities + Stockholders' Equity
◉ Asset.
Answer: Anything of value that is owned
◉ Liabilities.
, Answer: Amounts owed to creditors or obligations
◉ Stockholders' Equity.
Answer: Ownership on corporation's total assets
◉ retianed earnings.
Answer: income that has been retained within the business
net income - dividends
◉ net income (lose).
Answer: Revenue - expenses
◉ revenue.
Answer: the increase in assets or decrease in liabilities resulting
from the sale of goods or the performance of services in the normal
course of business
◉ expenses.
Answer: The cost of assets consumed or services used in the process
of generating revenues.
