Exam (elaborations)
Principles of Accounting Chapters 1 – 4 exam questions and answers.
- Course
- Institution
Principles of Accounting Chapters 1 – 4 exam questions and answers.
[Show more]
Seller
Follow
BRAINBOOSTERS
Reviews received
Content preview
Principles of Accounting Chapters 1 – 4exam questions and answers
Accounting Equation - answer Assets = Liabilities + Stockholders' Equity
Assets - answer Resources owned by the company
Auditors - answer Trained individuals hired by a company as an independent party to express a
professional opinion of the accuracy of that company's financial statements.
Balance Sheet - answer A financial statement that presents the financial position of the
company on a particular date
Comparability - answer The ability of users to see similarities and differences between company
on a particular date.
Consistency - answer The use of similar accounting procedures either over time for the same
company, or across companies at the same point in time.
Corporation - answer An entity that is legally separate from its owners
Pros: Easy to transfer, easier to raise $, None/Limited liability
Cons: Higher tax rate.
Cost Effectiveness - answer Financial accounting information is provided only when the benefits
of doing so exceeds the costs.
Decision Usefulness - answer The ability of the information to be useful in decision making
, Dividends - answer Cash payments to stockholders
Economic Entity Assumption - answer All economic events with a particular economic entity can
be identified.
Expenses - answer Costs of providing products and services
Faithful Representation - answer Accounting information that is verifiable, neutral, and
complete.
Financial Accounting - answer Measurements of business activities of a company and
communication of those measurements to external parties for decision-making purposes.
Financial Statements - answer Periodic reports published by the company for the purpose of
providing information to external users.
Financing Activities - answer Transactions involving external sources of funding. "It takes $ to
make $.:
Generally Accepted Accounting Principles (GAAP) - answer The rules of financial accounting
Going Concern Assumption - answer In the absence of information to the contrary, a business
entity will continue to operate indefinitely.
Income Statement - answer A financial statement that reports the company's revenues and
expenses over an interval of time.
Investing Activities - answer Transactions involving the purchase and sale of (1) long-term
resources such as land, buildings, equipment, and machinery, and (2) any resources not directly
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81531 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now