ACCT 5110 Quiz 1 Questions And Answers 100% Correct

ACCT 5110 Quiz 1 Questions And Answers
100% Correct

The Securities and Exchange Commission creates accounting standards. T/F - answer
False

Privately held companies must produce financial statements that conform to U.S. GAAP.
- answer False

According to the FASB, accounting information should be (choose up to four answers):

Comparable

Reliable

Conservative

Timely - answer Comparable

Reliable

Timely

Retained earnings is equivalent to a company's net income for an accounting period. T/F
- answer False

The accounting equation is (choose one):

Assets = Liabilities + Shareholders' Dividends

Assets = Liabilities - Shareholders' Equity

Assets = Liabilities + Debt

Assets = Liabilities + Shareholders' Equity - answer Assets = Liabilities + Shareholders'
Equity

Funds a company receives from shareholders are often called:

Paid-in capital

Net income

Dividends

Retained earnings - answer Paid-in capital

The main reason companies make adjusting entries is to remediate instances of