Exam (elaborations)
Accounting Test Questions and Answers
- Course
- Accounting
- Institution
- Accounting
Accounting Test Questions and Answers
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Accounting Test Questions and AnswersThe 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
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