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15 Cards in this Set

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What is the Basic Accounting Equation?
Assets = Liabilities + Stockholder's Equity
Dividends reduce...
a) Stockholder's Equity
b) Liabilities
c) Retained Earnings
c) Retained Earnings
Ethics in business are important because...
a) Retained Earnings go up
b) Business dealings must be honest for credibility sake
c) Ethics are not important
b) Business dealings must be honest for credibility sake
What does GAAP stand for?
Generally Accepted Accounting Principles
The Cost Principle dictates that:
a) All assets should be recorded at cost
b) Cost is short for Costa Rica
c) Supplies must be purchased at cost
a) All assets should be recorded at cost
The Monetary Unit Assumption requires...
a) That a given resource will lose value over time
b) That monetary unit value is determined by the SEC
c) That only transaction data that can be expressed in monetary terms is to be recored
c) That only transaction data that can be expressed in monetary terms is to be recorded
The Economic Entity Assumption requires...
a) That government offices are exempt from taxation
b) That business entity can have only one owner
c) That the activities of the owner be kept separate from the activities of the business entity
c) That the activities of the owner be kept separate from the activities of the business entity
A business owned and operated by one person is a...
Proprietorship
A business owned by two or more associated persons is a...
Partership
A business organized as a separate legal entity and having ownership divided into transferable shares of stock is a...
Corporation
Resources owned by a business are called...
Assets
Existing debts or obligations against a business are called...
Liabilities
The ownership claim on all combined assets against all combined liabilities is called...
Stockholder's Equity
The total investment made by stockholders into a business is called...
Paid-In Capital
Sales, fees, commissions, interest, dividends, royalties and rent paid to a business are all examples of...
Revenues