ACCT 201A CSUF HOFFMAN COMPLETE QUESTIONS AND CORRECT ANSWERS | GRADED AND THE LATEST SERIES

ACCT 201A CSUF HOFFMAN COMPLETE
QUESTIONS AND CORRECT ANSWERS |
GRADED AND THE LATEST SERIES
Trial Balance

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


Question: What happens when shareholders invest in a company?

Ans: 1. Stockholder's Equity increases
2. Cash increases
3. Cash Debit
4. Common Stock Credit


Question: Monetary Unit Assumption

Ans: An assumption that requires that only those things that can be
expressed in money are included in the accounting records.


Question: Cost Constraint

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.

, Question: Economic Entity Assumption

Ans: An assumption that every economic entity can be separately
identified and accounted for.


Question: Going Concern Assumption

Ans: The assumption that the company will continue in operation for
the foreseeable future.


Question: Unearned Revenue Adjustment

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


Question: Adjustment for supplies used

Ans: Debit supplies expense
Credit supplies


Question: Periodicity Assumption

Ans: An assumption that the economic life of a business can be
divided into artificial time periods.


Question: Full Disclosure Principle