ACING MBA 510 ACCOUNTING EXAM 1 WITH THE LATEST A+
QUESTIONS AND ANSWERS STUDY COMPANION.
the primary objective of financial accounting is to
provide accounting information that serves external users
A corporation is
a business legally separate from its owners
the accounting concept that requires every business to be accounted for
separately from other businesses entities including its owner or owners is known
as the
business entity program
if a company is considering the purchase of parcel of land that was acquired by
the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes
at $95,000, is considered by the purchaser as easily being worth $140,000, and is
purchased for $137,000, the land should be recorded in the purchasers books at
$137,000
if a company uses $1,300 of its cash to purchase supplies the effect on the
accounting equation would be
one asset increases $1,300 and another asset decreases $1,300, causing no effect
if equity is $300,000 and liabilities are $192,000, then assets equal
$492,000
creditors claims on the assets of a company are called
liabilities
assets created by selling goods and services on credit are
accounts receivable
the financial statement that reports whether the business earned a profit and also
lists the revenues and expenses is called the
income statement
a financial statement providing information that helps users understand a
company's financial status, and which lists the types and amounts of assets,
liabilities, and equity as of a specific date, is called a(n)
, balance sheet
promises of future payment by the customer are called
accounts receivable
which financial statement reports an organizations financial position at a single
point in time?
balance sheet
the assumption that assumes that an organizations activities may be divided into
specific reporting time periods including months, quarters, fiscal years, calendar
years.
time period assumption
the accounting principle that requires revenue to be recorded when earned is the
revenue recognition principle
the approach to preparing financial statements based on recognizing when they
are earned and matching expenses to those revenues is
accrual basis accounting
a company made no adjusting entry for accrued and unpaid employee wages of
$28,000 on december 31. this oversight would
overstate net income by $28,000
an account with another account that has an opposite normal balance and is
subtracted from the balance of the related account is a(n)
contra account
the total amount of depreciation recorded against an asset over the entire time
the asset has been owned
is referred to as accumulated depreciation
which of the following assets is NOT depreciated?
a. store fixtures
b. computers
c. land
d. buildings
e. equipment
c. land
QUESTIONS AND ANSWERS STUDY COMPANION.
the primary objective of financial accounting is to
provide accounting information that serves external users
A corporation is
a business legally separate from its owners
the accounting concept that requires every business to be accounted for
separately from other businesses entities including its owner or owners is known
as the
business entity program
if a company is considering the purchase of parcel of land that was acquired by
the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes
at $95,000, is considered by the purchaser as easily being worth $140,000, and is
purchased for $137,000, the land should be recorded in the purchasers books at
$137,000
if a company uses $1,300 of its cash to purchase supplies the effect on the
accounting equation would be
one asset increases $1,300 and another asset decreases $1,300, causing no effect
if equity is $300,000 and liabilities are $192,000, then assets equal
$492,000
creditors claims on the assets of a company are called
liabilities
assets created by selling goods and services on credit are
accounts receivable
the financial statement that reports whether the business earned a profit and also
lists the revenues and expenses is called the
income statement
a financial statement providing information that helps users understand a
company's financial status, and which lists the types and amounts of assets,
liabilities, and equity as of a specific date, is called a(n)
, balance sheet
promises of future payment by the customer are called
accounts receivable
which financial statement reports an organizations financial position at a single
point in time?
balance sheet
the assumption that assumes that an organizations activities may be divided into
specific reporting time periods including months, quarters, fiscal years, calendar
years.
time period assumption
the accounting principle that requires revenue to be recorded when earned is the
revenue recognition principle
the approach to preparing financial statements based on recognizing when they
are earned and matching expenses to those revenues is
accrual basis accounting
a company made no adjusting entry for accrued and unpaid employee wages of
$28,000 on december 31. this oversight would
overstate net income by $28,000
an account with another account that has an opposite normal balance and is
subtracted from the balance of the related account is a(n)
contra account
the total amount of depreciation recorded against an asset over the entire time
the asset has been owned
is referred to as accumulated depreciation
which of the following assets is NOT depreciated?
a. store fixtures
b. computers
c. land
d. buildings
e. equipment
c. land
