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Acct 201a CSUF Hoffman: Questions With Accurate Answers

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Acct 201a CSUF Hoffman: Questions With Accurate Answers

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Acct 201a CSUF Hoffman: Questions With Accurate
Answers

Trial Balance Right Ans - 1. Lists accounts and their balance at a given time
2. Mathematical equality of debits and credits after posting
3. Uncovers errors in journalizing and posting

What happens when shareholders invest in a company? Right Ans - 1.
Stockholder's Equity increases
2. Cash increases
3. Cash Debit
4. Common Stock Credit

Monetary Unit Assumption Right Ans - An assumption that requires that
only those things that can be expressed in money are included in the
accounting records.

Cost Constraint Right Ans - Constraint that weighs the cost that companies
will incur to provide the information against the benefit that financial
statement users will gain from having the information available.

Economic Entity Assumption Right Ans - An assumption that every
economic entity can be separately identified and accounted for.

Going Concern Assumption Right Ans - The assumption that the company
will continue in operation for the foreseeable future.

Unearned Revenue Adjustment Right Ans - Advance collection:
1. Debit cash
2. Credit Unearned Revenue

Adjustment for supplies used Right Ans - Debit supplies expense
Credit supplies

Periodicity Assumption Right Ans - An assumption that the economic life of
a business can be divided into artificial time periods.

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