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Financial Accounting Final Questions
with Detailed Verified Answers
Question: regulatory Bodies, individuals, and investors & creditors
Answer: Financial statements are used by
Question:corporation
Answer: what form of business organization limits liability to the amount a
person has invested in a business
Question:the organizations financial accounting system
Answer: an organization's investors and creditors will primarily use info
provided by
Question:Useful for making investment and credit decisions
Answer: the primary objective of financial reporting is to provide information
Question:corporation
Answer: Which type of business organization provides the least amount of
protection for bankers and other creditors of the company?
Question:relevance and faithful representation
Answer: To be useful, information must have which of the following
fundamental qualitative characteristics?
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Question:they are converging gradually with US standards
Answer: Which of the following is a true statement about International
Financial Reporting Standards?
Question:historical cost
Answer: Assets are usually reported at their
Question:continuity assumption
Answer: Assume that a business is headed for certain bankruptcy and it is
evident that its liabilities greatly exceed its assets. Which principle would be
violated if its financial statements were prepared using standard U.S. GAAP?
Question:Assets - Liabilities = Owner's Equity
Answer: Accounting Formula
Question:expenses
Answer: the costs of doing business are classified as
Question:increase assets and increase in stockholders equity
Answer: How would the issuance of common stock for cash affect the
accounting equation?
Question:increased by $50,000
Answer: During February, assets increased by $80,000 and liabilities increased
by $30,000. Equity must have:
Question:revenues
Financial Accounting Final Questions
with Detailed Verified Answers
Question: regulatory Bodies, individuals, and investors & creditors
Answer: Financial statements are used by
Question:corporation
Answer: what form of business organization limits liability to the amount a
person has invested in a business
Question:the organizations financial accounting system
Answer: an organization's investors and creditors will primarily use info
provided by
Question:Useful for making investment and credit decisions
Answer: the primary objective of financial reporting is to provide information
Question:corporation
Answer: Which type of business organization provides the least amount of
protection for bankers and other creditors of the company?
Question:relevance and faithful representation
Answer: To be useful, information must have which of the following
fundamental qualitative characteristics?
, Page | 2
Question:they are converging gradually with US standards
Answer: Which of the following is a true statement about International
Financial Reporting Standards?
Question:historical cost
Answer: Assets are usually reported at their
Question:continuity assumption
Answer: Assume that a business is headed for certain bankruptcy and it is
evident that its liabilities greatly exceed its assets. Which principle would be
violated if its financial statements were prepared using standard U.S. GAAP?
Question:Assets - Liabilities = Owner's Equity
Answer: Accounting Formula
Question:expenses
Answer: the costs of doing business are classified as
Question:increase assets and increase in stockholders equity
Answer: How would the issuance of common stock for cash affect the
accounting equation?
Question:increased by $50,000
Answer: During February, assets increased by $80,000 and liabilities increased
by $30,000. Equity must have:
Question:revenues
