Acg Final

Front 1

field of accounting may best be described as

Back 1

the art of interpreting, measuring and describing economic activity

Front 2

GAAP principles

Back 2

may change over time.

Front 3

Financial statements are prepared

Back 3

for teh benefit of persons outside the business organization

Front 4

The accounting systems of most buisnesses

Back 4

are tailored to meet the organizations needs

Front 5

Accouting info is primarily directed towards the needs of:

Back 5

investors and creditors

Front 6

Characteristic of finaial accounting

Back 6

its preparation requires judgement

Front 7

the principle of adequate disclosure means

Back 7

that any financial facts that a reasonbly informed person would consider necessary for the proper interpretation of the financial statements

Front 8

Owner's equity in a business increases as a result of:

Back 8

earnings from profitable operations of the business

Front 9

This best defines an asset

Back 9

an economic resource owned by a business and expected to benefit future operations

Front 10

a balance sheet

Back 10

shows the assets liabilites and owners equity of a business entity valued in conformity with GAAP

Front 11

the following is not a GAAP re valuation of assets

Back 11

safety principle. These are: cost principle, objectivity principle and going concern principle.

Front 12

the following are correct when a corp uses cash to pay for expenses

Back 12

total assets, retained earnings, and owners equity will all decrease

Front 13

payment of a business debt not including interest

Back 13

decreases total assets

Front 14

corp borrowed 70k cash from bank, which had no effect on...

Back 14

owner's equity

Front 15

a transaction caused an increase in both assets and OE, this could have been

Back 15

a sale of service to a customer producing revenue

Front 16

the price of the goods sold or services rendered during a given accounting period is called

Back 16

revenue

Front 17

accumulated depreciation is:

Back 17

the depreciation expense recorded on an asset to date

Front 18

on the adjusted trail balance retained earnings is:

Back 18

stated at the period-beginning amount

Front 19

the concept of materiality

Back 19

justified ignoring the matching principle or the realization principle in certain circumstances

Front 20

income summary appears on which financial statement

Back 20

does not appear on any financial statement

Front 21

during the closing period

Back 21

all revenue accounts are debited and expense accounts are credited

Front 22

The purpose of making closing entries is to

Back 22

prepare revenue and expenses accounts for the recording of the next period's revenue and expenses.