5 Written Questions
5 Matching Questions
- Operating Activities
- Accounts Receivable
- Going Concern Assumption
- a The capacity of accounting information to make a difference in decisions.
- b A business that is formed when two or more proprietors join together to own a business.
- c Operating a business which includes purchase of supplies, the payment of employees, and the sale of products.
- d The right to collect that money from the costumer.
- e Accountants assume that a company will continue to operate into the foreseeable future.
5 Multiple Choice Questions
- The principle that expenses should be recorded in the period resources are used to generate revenues.
- The buying and selling of such assets
- An obligation that is reasonably expected to be satisfied within one year.
- Generating and repaying cash from creditors and investors are considered what?
- Any asset that is reasonably expected to be converted to cash or consumed within one year of the balance sheet date.
5 True/False Questions
Single-Step Income Statement → Calculates total revenues and total expenses and then determines net income in one step by subtracting total expenses from total revenues.
Gross Profit → An economic resource that is objectively measurable, results from a prior transaction, and will provide future economic benefit. CASH
Retained Earnings → The amount of equity a company generates by being profitable and retaining those profits in the business.
Monetary Unit Assumption → Accountants assume that the dollar is the most effective means of to communicate economic activity.
Comparability → An obligation of a business that results from a past transaction and will require the sacrifice of economic resources at some future date. Ex- notes payable to creditors