The two main qualities of accounting are - Answer Relevance and reliability
The largest organization of professional accountants - Answer AICPA
The FASB is responsible for establishing - Answer GAAP
The owners interest in the assets of a corporation - Answer Stockholders equity...
Accounting Test Questions And
Answers Already Passed.
The two main qualities of accounting are - Answer Relevance and reliability
The largest organization of professional accountants - Answer AICPA
The FASB is responsible for establishing - Answer GAAP
The owners interest in the assets of a corporation - Answer Stockholders equity
Stockholders equity increases as a result of - Answer owner investments, and net income during a
period
The term double entry accounting indicates that the accountant - Answer uses at least two accounts to
record a transaction, two columns to record changes in each account
when a company receives cash for issuing stock - Answer increases assets and increases equity
When a company performs services for a company on account the transaction: - Answer increases
assets and increases revenues
what is not a component of stockholders equity - Answer Accounts Payable
Accounting transactions are originally recorded in the - Answer journal or database
the process of posting in traditional bookkeeping - Answer transferring data from the journal to the
ledger
, the two primary methods used to account for transactions - Answer cash basis and accural basis
An accrual refers to an event that - Answer when an expense or revenue is recorded before the cash
settlement
which account is credited in the adjusting entry to record insurance expired during the current period -
Answer Prepaid insurance
what is not a purpose of internal control - Answer to promote operational inefficiency
Who has the primary responsibility for ensuring internal control - Answer The companies top
management
what should be added to a bank balance in the bank reconciliation - Answer deposits in transit
in merchandising business gross profit is equal to sales revenue minus - Answer cost of goods sold
the perpetual inventory system - Answer provides a continuous record of inventory on hand
under the allowance method for estimating uncollectible accounts the entry to record bad debt expense
- Answer shows a reduction in net income
when a company has a contingent loss and a reasonably possible chance of occurrence the FASB requires
that - Answer it should be reported in the notes of the financial statement
the interest rate that investors demand for loaning their money is called - Answer effective rate of
interest
if a bond is issued at a smaller percentage than the market rate it is a - Answer discount
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