FREE AND STUDY GAMES ABOUT ACCOUNT CH1 TF

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EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -18 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: recoding business costs in terms of hours required to complete projects is an application of the unit of measurement concept

Answer:

false

Question 2: a creditor would favor a positive net worth

Answer:

true

Question 3: when cash is paid for expenses, the business has more quity

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false Question 4: when items are bought and paid or later, this is referred to as buying on account

Answer:

true

Question 5: the accounting equation does not have to be in balance to be correct

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false Question 6: keeping personal and business records seperate is an application of the business entity concept

Answer:

true Question 7: whne cash is received from a sale, the total amount of both assets and owner's equity is increased

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true Question 8: the relationship among assets, liabilities, and owner's equity can be written as a equation

Answer:

true

Question 9: when case is pain gon account, a liability is increased

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false Question 10: the principles o right and wrong that guide an individual in making personal decisions is called business ethics

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true Question 11: when a company recieves cash from a customer for a prior sale, the transaction increases the cash account balance and increased the accounts recivable balance

Answer:

false

Question 12: Generally Accepted Accounting Principles allows for flexibility in reporting

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false Question 13: when a compant pays insurace premuims in advance to an insurer, it records the payment as a liability becasue the insurer owes future coverage

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false Question 14: assets such as cash and supplies have value becasue they can be using to acquire other assets or be used to operate a business

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true Question 15: if two amounts are recoded on the same side of the accounting equation, the equation will no longer be in balace

Answer:

false

Question 16: a withdrawl decreases owner's equity

Answer:

true

Question 17: accounting is the language of business

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true Question 18: the accounting concept Realization on Revenue is applied when revenue is recorded at the time goods or services are sold

Answer:

true