Which of the following statements about an "account" is true? It is the art of recording, classifying and summarizing business transactions It is a device used to accumulate the O effects of the transaction for a specific asset, liability or owner's equity It refers to the resources controlled by the business entity O The right-side is the increase side Expenses paid and recorded as assets before they are used up or expire are called prepaid expense interim expenses accrued expenses unearned expense

Which of the following statements about an "account" is true? It is the art of recording, classifying and summarizing business transactions It is a device used to accumulate the O effects of the transaction for a specific asset, liability or owner's equity It refers to the resources controlled by the business entity O The right-side is the increase side Expenses paid and recorded as assets before they are used up or expire are called prepaid expense interim expenses accrued expenses unearned expense

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 10MC: Which of the following is the principle that a business must report any business activities that...

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Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
FINANCIAL STATEMENT ACCOUNTS Label each of the following accounts as an asset (A), liability (L), owners equity (OE), revenue (R), or expense (E). Indicate the financial statement on which the account belongsincome statement (IS), statement of owners equity (SOE), or balance sheet (BS)in a format similar to the following.
FINANCIAL STATEMENT ACCOUNTS Label each of the following accounts as an asset (A), liability (L), owners equity (OE), revenue (R), or expense (E). Indicate the financial statement on which the account belongsincome statement (IS), statement of owners equity (SOE), or balance sheet (BS)in a format similar to the following.
That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption
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Identify or classify the different account titles as to whether the belong to Assets, Liabilities, Owner's Equity, Revenue, or Expense of the Business. Fill the amounts of the following SFP and SCI elements. Current Assets: _________ Noncurrent Assets: __________ Current Liabilities: _________ Noncurrent Liabilities: __________ Sales: __________ Expenses: ___________ Net Income (Loss): __________
Indicate whether the following statement is true or false: Accounting is a process that involves three activities namely identification of transaction, recording and communication of information recorded via the financial statements of the entity. Select one: True O False
What are the accounting information needed by: a. Internal users b. External users
How does the double-entry accounting system ensure the accuracy of financial transactions and maintain the balance between assets, liabilities, and equity?
Match the transaction to the basis of accounting used by the business
The business entity assumption is important because O a. it requires that the company record all of its economic transactions in accordance with GAAP. O b. it limits economic data in the accounting system to data directly related to the activities of the business. O c. it limits the amount that a company can record for its transactions in the accounting records. O d. it requires that all transactions be recorded in the period in which they occur.
An area of information that shows a company's ability to manage its assets, such as inventory and accounts receivable. Select one: O a. Solvency b. Liquidity c. Profitability d. Operations Management O