The reason that both expenses and dividends are recorded by debit entries is that:
Both expenses and dividends are reduced owners equity.
The principle that states revenue should be recognized at the time goods are sold or services rendered is called:
the general purpose financial statements prepared annually by a corporation would not include the:
Income tax return.
Tge sequence of accounting procedures used to record, classify and summarize accounting information is called the:
the agreement of the debit and credit totals of the trial balance gives assurance that:
The total debits equal the total credits.
Under accrual accounting, fees received in advance from customers should be shown as being earned:
When services are performed or goods delivered.
The rules of debit and credit may be summarized as follows:
Accounts on the left side of the balance sheet are increased by debits, whereas accounts on the right side of the balance sheet are increased by credits
A balance sheet:
Shows the assets, liabilities, and owners equity of a business entity, valued in conformity with generally accepted accounting principles.
Adjusting entries help achieve the goals of accrual accounting by applying the following two accounting principles:
Realization principle and matching principle.
Which of the following activities is not a category into which cash flows are classified?
Which financial statement is primarily concerned with reporting the financial position of a business at a particular time?
The balance sheet.
the set of standard, assumption, and concepts that form the "ground rules" for financial reporting in the United States is termed:
Generally accepted accounting principles.
The principal difference between management accounting and financial accounting is that financial accounting information is:
Intended primarily for use by decision makers outside the business organization.
The matching principle:
Is used in accrual accounting to determine the proper period for recognition of expenses.
Which of the following would not be a proper application of the concept of materiality by Bayview Corporation?
Transactions involving small dollar amounts are not recorded in Bayview's accounting records.
Capital stock represents:
The amount invested in the business by stockholders when shares of stock were initially issued by a corporation.
During the current year, liabilities of Angelinos store increased by $210,000, and owners equity increased by $140,000.
Assets increased during the year by $350,000.
If $8,600 cash and a $30,000 note payable are given in exchange for some office machine used in a business:
Total assets are increased.