Introduction to Financial Accounting Exam 4 (Final) || || || || || || ||
questions with answers || ||
Going concern assumption - ✔✔an enterprise will continue in operation long enough to carry out
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its existing objectives and commitments
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Which of the following statements is true? - ✔✔Amounts paid out as dividends are not expenses.
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Does net income appear on both the income statement and statement of cash flows? - ✔✔No,
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only income statement
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Assets - ✔✔= liabilities + stockholders equity
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Ending equity - ✔✔= starting equity + net income - dividends
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Debits increase - ✔✔Assets, expenses, dividends
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Debits decrease - ✔✔Liabilities, revenues, equity (retained earnings)
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Chart of accounts - ✔✔list of the accounts in a given firm's ledger
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Cash basis for accounting - ✔✔violates both the revenue recognition and expense recognition
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principles
What does the omission of an adjusting entry for depreciation on equipment cause? -
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✔✔Overstated net income for the current year || || || || || ||
questions with answers || ||
Going concern assumption - ✔✔an enterprise will continue in operation long enough to carry out
|| || || || || || || || || || || || || || ||
its existing objectives and commitments
|| || || ||
Which of the following statements is true? - ✔✔Amounts paid out as dividends are not expenses.
|| || || || || || || || || || || || || || ||
Does net income appear on both the income statement and statement of cash flows? - ✔✔No,
|| || || || || || || || || || || || || || || ||
only income statement
|| ||
Assets - ✔✔= liabilities + stockholders equity
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Ending equity - ✔✔= starting equity + net income - dividends
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Debits increase - ✔✔Assets, expenses, dividends
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Debits decrease - ✔✔Liabilities, revenues, equity (retained earnings)
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Chart of accounts - ✔✔list of the accounts in a given firm's ledger
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Cash basis for accounting - ✔✔violates both the revenue recognition and expense recognition
|| || || || || || || || || || || || ||
principles
What does the omission of an adjusting entry for depreciation on equipment cause? -
|| || || || || || || || || || || || || ||
✔✔Overstated net income for the current year || || || || || ||
