FINANCIAL ACCOUNTING
REVIEWED EXAM QUESTIONS AND
THEIR CORRECT SOLUTIONS
US GAAP is adopted by
SEC
Amounts are posted from the ________ to the
________
Journal, general ledger
Debits always decrease which accounts?
Liabilities, Revenue and Common Stock
Credits always decrease which accounts?
Assets and Expenses
Which of the following is not an expense?
Dividends paid
Which of the following is not a liability?
Prepaid expense
Which of the following is not a form of business
organization?
Charity
An accounting policy requiring a corporation to
capitalize any asset over $5,000 in value would be an
example of:
Materiality
A company purchases supplies and records these as
an asset. As they are used, they are expensed. This is
an example of
REVIEWED EXAM QUESTIONS AND
THEIR CORRECT SOLUTIONS
US GAAP is adopted by
SEC
Amounts are posted from the ________ to the
________
Journal, general ledger
Debits always decrease which accounts?
Liabilities, Revenue and Common Stock
Credits always decrease which accounts?
Assets and Expenses
Which of the following is not an expense?
Dividends paid
Which of the following is not a liability?
Prepaid expense
Which of the following is not a form of business
organization?
Charity
An accounting policy requiring a corporation to
capitalize any asset over $5,000 in value would be an
example of:
Materiality
A company purchases supplies and records these as
an asset. As they are used, they are expensed. This is
an example of
