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Exam (elaborations)

ACC Exam Review Questions & Answers 2024/2025

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ACC Exam Review Questions & Answers 2024/2025 Business Entity Principle - ANSWERSPrinciple prescribing that every business to be accounted for separately and distinctly from its owner or owners Going Concern Principle - ANSWERSPrinciple prescribing that financial statements reflect the assu...

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  • October 14, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • ACC
  • ACC
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ACC Exam Review Questions & Answers
2024/2025

Business Entity Principle - ANSWERSPrinciple prescribing that every business to be accounted for
separately and distinctly from its owner or owners



Going Concern Principle - ANSWERSPrinciple prescribing that financial statements reflect the assumption
that the business will continue operating instead of being closed or sold, unless evidence shows that it
will not continue



Revenue Recognition Principle - ANSWERSRequires revenue to be recognized at the time that it is
earned. Allows the inflow of assets associated with revenue to be in a form other than cash. Measures
the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from
customers in exchange for goods and services



Matching Principle - ANSWERSBroad principle that requires expenses to be reported in the same period
as the revenue that were earned as result of the expenses



Debt - ANSWERSleft hand side of T-account



Credit - ANSWERSDecreases asset and expense accounts, and increase liability, common stock and
revenue accounts



Cash Basis Accounting - ANSWERSSystem of preparing financial systems based on recognizing revenues
when the cash is received and reporting expenses when the cash is paid



Adjusting Entries - ANSWERSAffects the cash account



Classified Balance Sheet - ANSWERSOrganizes assets and liabilities into important subgroups

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