Historical cost principle Samenvattingen, Aantekeningen en Examens

Materiality CORRECT ANSWER The dollar magnitude of the transaction makes a difference in how it is recorded. Record as an expense not an asset. No party would be mislead. Ex. buying a 10 dollar trash can Monetary Unit CORRECT ANSWER Only transactions that can be expresses in terms of money can be included in the accounting records. Time Period Assumption CORRECT ANSWER The long life of a company can be reported over a series of shorter time periods. Makes it possible to prepare the income...

ACCT 2101 Final Exam Study Guide Chapters 1 – 12 Chapter 1 1. The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n) a. account payable. b. account receivable. c. revenue. d. expense. 2. The right to receive money in the future is called a(n) a. account payable. b. account receivable. c. liability. d. revenue. 3. Borrowing money is an example of a(n) a. delivering activity. b. financing activity. c. inves...

RMIN 4000 UGA Brown Exam 3 Latest Version Graded A+ principle of indemnity The insurer agrees to pay no more than the actual amount of the loss (prevent the insured from profiting from loss) replacement cost (RC) the cost to replace property with an item of like kind and quality (similar workmanship and materials) (not the same as historical cost!) actual cash value (ACV) - replacement cost - depreciation - in property insurance, indemnification is usually based on the actual cash...

WALL STREET PREP ACCOUNTING EXAM WITH QUESTIONS AND WELL VERIFIED ANSWERS [GRADED A+] 2024 [NEW!!NEW!!!] FASB - ANS--Financial Accounting Standards Board, which oversees GAAP through issuance of SFAS, oversight by the SEC SFAS - ANS--Standard Financial Accounting Statements, issued by the FASB AA,P,C: Historical Cost - ANS--The principle that resources and liabilities are recorded at their initial cost rather than a continuously updating value AA,P,C: Revenue Recognition - ANS--The prin...

Test Bank For Financial Accounting 3rd Edition By Christopher Burnley. ACCOUNT CLASSIFICATION AND PRESENTATION Normal Account Title Classifi cation Financial Statement Balance A Accounts Payable Current Liability Statement of Financial Position Credit Accounts Receivable Current Asset Statement of Financial Position Debit Accumulated Depreciation— Plant Asset—Contra Statement of Financial Position Credit Buildings Accumulated Depreciation— Plant Asset—Contra Statement of Financi...

CPH Exam Practice Test Bank Prep_ Answered_2022. Many people do not attempt to decrease unhealthy behaviors such as overeating or smoking because they lack the confidence that they can successfully change. This is an example of: (A) Perceived susceptibility (B) Perceived severity (C) Perceived self-efficacy (D) Perceived response efficacy The construct of normative beliefs is from which model/theory? (A) Transtheoretical model (B) Theory of reasoned action/planned behavior (C) So...

WGU C928 - WGU IT Finance Rated A+ account payable The liability created by a purchase on account. account receivable A claim against the customer created by selling merchandise or services on credit. This item is shown on the Balance Sheet. accounting An information system that provides reports to users about the economic activities and condition of a business. accounting assumptions Assumptions that provide the framework upon which accounting standards are constructed. accounting equation ...

1. What is Accounting?: Accounting is the language of business; it is a standard set of rules for measuring a company's financial performance. Assessing a company's financial performance is important for: The firm's officers (managers and employees) Investors Lenders General public Standard financial statements serve as a "yardstick" of communicating financial performance to the general public. 2. Why is Accounting Important?: Enables managers to make corporate decisions Enables t...

Intermediate Accounting: Chapter 9Lower-of-cost-or-market - correct answer Lower-of-cost-or-market - Inventories are recorded at their cost. However, if inventory declines in value below its original cost, a major departure from the historical cost principle occurs. Whatever the reason for a decline—obsolescence, price-level changes, or damaged goods—a company should write down the inventory to market to report this loss. A company abandons the historical cost principle when the future util...

Position Descriptions - ANSWER A detailed list of a job's duties, reporting relationships, working conditions, and responsibilities. Planning - ANSWER Is the process of setting goals and objectives; of determining desired outcome and defining a course of action. What does planning involve? - ANSWER It involves arranging matters in advance, helps avoid crisis, and anticipates problems. It is generally considered the most important function but often neglected due to no time or unclear obje...