Intermediate Accounting Chapter
1-3 Questions with Accurate
Answers
4 Basic Principles of Accounting correct answer Measurement
Revenue Recognition
Expense Recognition
Full Disclosure
Account correct answer Systematic arrangement that shows the effect of
transactions and other events on a specific element
Accounting Information System correct answer Collects and processes transaction
data and then disseminates the financial information to interested parties.
Accounting Principle Board correct answer 1) Advance the written expression of
accounting principles
2) Determine appropriate practices
3) narrow the areas of difference and inconsistent
Accounting Standards Executive Committee correct answer Committee authorized
to speak for the AICPA in areas of financial reporting and accounting
Accrual-basis Accounting correct answer Company records events that change its
financial statements in the periods in which the events occur
, accrued expenses correct answer expenses incurred but not yet paid or recorded
at the statement date
Accrued revenues correct answer Revenues for services performed but not yet
recorded at the statement date
adjusted trial balance correct answer balance taken immediately after all
adjustments have taken place
Adjusted trial balance correct answer prove the equality of the total debit
balances and the total credit balances in the ledger after adjustments
adjusting entries correct answer entries made at the end of an accounting period
to bring all accounts up tot date on an accrual basis, so company can prepare
correct financial statements
Articulation correct answer Key figures in one financial statement corresponds to
another
Assets correct answer Probable future economic benefits obtained or controlled
by a particular entity as a result of past transactions or events
Balance Sheet correct answer shows the financial condition of the enterprise at
end of period
Book value correct answer Of any depreciable asset is the difference between its
cost and its related accumulated depreciation
1-3 Questions with Accurate
Answers
4 Basic Principles of Accounting correct answer Measurement
Revenue Recognition
Expense Recognition
Full Disclosure
Account correct answer Systematic arrangement that shows the effect of
transactions and other events on a specific element
Accounting Information System correct answer Collects and processes transaction
data and then disseminates the financial information to interested parties.
Accounting Principle Board correct answer 1) Advance the written expression of
accounting principles
2) Determine appropriate practices
3) narrow the areas of difference and inconsistent
Accounting Standards Executive Committee correct answer Committee authorized
to speak for the AICPA in areas of financial reporting and accounting
Accrual-basis Accounting correct answer Company records events that change its
financial statements in the periods in which the events occur
, accrued expenses correct answer expenses incurred but not yet paid or recorded
at the statement date
Accrued revenues correct answer Revenues for services performed but not yet
recorded at the statement date
adjusted trial balance correct answer balance taken immediately after all
adjustments have taken place
Adjusted trial balance correct answer prove the equality of the total debit
balances and the total credit balances in the ledger after adjustments
adjusting entries correct answer entries made at the end of an accounting period
to bring all accounts up tot date on an accrual basis, so company can prepare
correct financial statements
Articulation correct answer Key figures in one financial statement corresponds to
another
Assets correct answer Probable future economic benefits obtained or controlled
by a particular entity as a result of past transactions or events
Balance Sheet correct answer shows the financial condition of the enterprise at
end of period
Book value correct answer Of any depreciable asset is the difference between its
cost and its related accumulated depreciation
