VYC1 ACCOUNTING WGU | ACCOUNTING PRINCIPLES
| 2025/26 UPDATE | QUESTIONS AND ANSWERS |
100% CORRECT!!
The personal assets of the owner of a company will not appear on the
company's balance sheet because of which principle/guideline? Answer -
Economic Entity
Which principle/guideline requires a company's balance sheet to report its land
at the amount the company paid to acquire the land, even if the land could be
sold today at a significantly higher amount? Answer - Cost
Which principle/guideline allows a company to ignore the change in the
purchasing power of the dollar over time? Answer - Monetary Unit
Which principle/guideline requires the company's financial statements to have
footnotes containing information that is important to users of the financial
statements? Answer - Full Disclosure
Which principle/guideline justifies a company violating an accounting principle
because the amounts are immaterial? Answer - Materiality
Which principle/guideline is associated with the assumption that the company
will continue on long enough to carry out its objectives and commitments?
Answer - Going Concern
| 2025/26 UPDATE | QUESTIONS AND ANSWERS |
100% CORRECT!!
The personal assets of the owner of a company will not appear on the
company's balance sheet because of which principle/guideline? Answer -
Economic Entity
Which principle/guideline requires a company's balance sheet to report its land
at the amount the company paid to acquire the land, even if the land could be
sold today at a significantly higher amount? Answer - Cost
Which principle/guideline allows a company to ignore the change in the
purchasing power of the dollar over time? Answer - Monetary Unit
Which principle/guideline requires the company's financial statements to have
footnotes containing information that is important to users of the financial
statements? Answer - Full Disclosure
Which principle/guideline justifies a company violating an accounting principle
because the amounts are immaterial? Answer - Materiality
Which principle/guideline is associated with the assumption that the company
will continue on long enough to carry out its objectives and commitments?
Answer - Going Concern
