Accounting Principles

Accounting Principles Prep Questions With Verified Answers Which of the following expressions is incorrect? Sales revenue - cost of goods sold - Operating expenses = Net income Operating expenses - Cost of goods sold = Gross profit Net income + Operating expenses = Gross profit Gross profit - Operating expenses = Net income - ANSWER Operating expenses - Cost of goods sold = Gross profit Net income - ANSWER gross profit - operating expenses or Sales revenue - cost of goods sold - O...

Accounting Principles and Formulas Questions With Verified Answers | UPDATED Basic Accounting Equation - ANSWER Assets = Liabilities + Owner's Equity Business Entity - ANSWER The financial statements report about a single business. Every business gets its own set of books. Accountants do not mix in the owner's personal financial information. Current - ANSWER "Current" liabilities are those debts that must be paid within one year or one operating cycle, whichever is longer....

Accounting Principles Questions With Verified Answers | UPDATED The consistency principle - ANSWER states that, once you adopt an accounting principle or method, continue to follow it consistently in future accounting periods. The full disclosure principle - ANSWER states that you should include in an entity's financial statements all information that would affect a reader's understanding of those statements. The materiality principle - ANSWER states that you are allowed to ...

ACCCOB1 Accounting Principles Questions With Answers Verified 100% GAAP - ANSWER Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities. It encompasses the procedures accepted in the accounting process. IASB - ANSWER International Accounting Standards Board. They actively develop and issue accounting standards that will to be followed internationally. Its purpose is to narrow down the differen...

ACCCOB1 Accounting Principles Exam Updated And Fully Solved 2023/2024 GAAP Answer: Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities. It encompasses the procedures accepted in the accounting process. IASB Answer: International Accounting Standards Board. They actively develop and issue accounting standards that will to be followed internationally. Its purpose is to narrow down the differences in the ...

Accounting an information system that measures business activities, processes information, and communicates financial information. External Users make decisions ABOUT the entity (i.e. investors, bankers). Internal Users make decisions FOR the entity (i.e. managers). Financial Accounting focuses on the preparation of Financial Statements (often useful for those external to the firm) Management Accounting focuses on the preparation of internal reports (e.g. perform...

GAAP Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities. It encompasses the procedures accepted in the accounting process. IASB International Accounting Standards Board. They actively develop and issue accounting standards that will to be followed internationally. Its purpose is to narrow down the differences in the world when preparing a financial statement. Conceptual Framework of Financia...

Specific Accounting Principle Usually created by a pronouncement from an authoritative body Going-Concern Assumption Financial statements reflect the assumption that the business continues operating General Accounting Principle Derived from long-used and generally accepted accounting practices. Business Entity Assumption Every business is accounted for separately from its owner or owners Revenue Recognition Principle Revenue is recorded only when the earnings pro...

usually created by a pronouncement from an authoritative body E. Specific accounting principle financial statements reflect the assumption that the business generally accepted accounting practices G. Going-concern assumption Derived from long used and generally accepted accounting practices A. General accounting principle Every business is accounted for separately from its owners or owner C. Business entity assumption Revenue is recorded only when the earnings pro...

GENERAL ACCEPTED ACCOUNTING PRINCIPLES Are principles (including concepts and assumptions), which have gained international acceptance in the business world and accountancy profession. The accounting procedures, profit determination, preparation and presentation of financial statements must be in conformity with the generally accepted accounting principles. Business Entity Concept Under this concept, the business is treated, as having a separate personality from the owner/s Example - t...