Monetary unit assumption Study guides, Class notes & Summaries

Accounting 201 Final Exam Review Chapters 1-11 With Complete Solutions 2024Which if the following is not a step in the accounting process a. identification b. economic entity c. recording d. communication - correct answer-b. economic entity Which of the following statements about users of accounting information is incorrect? a. management is an internal user b. taxing authorities are external users c. present creditors are external users d. regulatory authorities are internal user...

Which need is the primary influence on the demand for financial information? - The need for user groups to make decisions regarding resource allocation Which organization is responsible for the oversight, financing, and administration of all accounting standard setting organizations in the US? - Financial Accounting Foundation (FAF) Three organizations that set financial accounting standards for US companies? - Committee on Accounting Procedures (CAP), Accounting Principles Board (APB), an...

Accounting Peregrine Exam|Complete Questions With 100% Verified Answers Relevance The quality of information that indicates the information makes a difference in a decision. Reliability the quality of information that gives assurance that it is free of error and bias Comparability Ability to compare the accounting information of different companies because they use the same accounting principles. Consistency use of the same accounting principles and methods from year to year ...

CHAPTER LEARNING OBJECTIVES 1. Identify the activities and users associated with accounting. Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. The major users and uses of accounting are as follows (a) Management uses accounting information to plan, organize, and run the business. (b) Investors (owners) decide whether to buy, hold, or sell their financial interests on the basis of accounting data. (c) C...

Intermediate Accounting Exam #1 (ch.1-4) Questions with Verified Solutions According to Statement of Financial Accounting Concepts No. 2, predictive value is an ingredient of the fundamental quality of: Relevance: Faithful Representation: a. yes no b. yes yes c. no no d. no yes - answera: yes; no Financial information exhibits the characteristic of consistency when: a. expenses are reposted as charges against revenue in the period in which they are paid b. companies apply the same acc...

Solution Manual For Horngren's Accounting, 13th Edition by Tracie Miller-Nobles, Brenda Mattison 2024 / All Chapters ( 1-17 ) A+ Chapter 1 Accounting and the Business Environment Review Questions 1. Accounting is the information system that measures business activities, processes the information into reports, and communicates the results to decision makers. Accounting is the language of business. 2. Financial accounting provides information for external decision makers, such as outside i...

Intermediate Accounting Exam #1 (ch.1-4) Questions with Verified Solutions According to Statement of Financial Accounting Concepts No. 2, predictive value is an ingredient of the fundamental quality of: Relevance: Faithful Representation: a. yes no b. yes yes c. no no d. no yes - answera: yes; no Financial information exhibits the characteristic of consistency when: a. expenses are reposted as charges against revenue in the period in which they are paid b. companies apply the same acc...

Relevance - The quality of information that indicates the information makes a difference in a decision. Reliability - the quality of information that gives assurance that it is free of error and bias Comparability - Ability to compare the accounting information of different companies because they use the same accounting principles. Consistency - use of the same accounting principles and methods from year to year within a company Monetary Unit Assumption - Only items that be expressed in m...

Acct 229 Final TAMU Latest 2023 Already Passed Materiality The dollar magnitude of the transaction makes a difference in how it is recorded. Record as an expense not an asset. No party would be mislead. Ex. buying a 10 dollar trash can Monetary Unit Only transactions that can be expresses in terms of money can be included in the accounting records. Time Period Assumption The long life of a company can be reported over a series of shorter time periods. Makes it possible to prepare the income st...

assets - resources owned by the business (things of value) liabilities - creditors claims on total assets (obligations or debts of the business) stockholders equity - ownership claims on total assets basic accounting equation - assests= liabilities + stockholders equity generally accepted accounting principles - set of rules and practices that provide answers to the followong questions - How does a company decide on the type of financial info to disclose? - What format should a company us...