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FREE AND STUDY GAMES ABOUT ACOCUNTING EXAM
QUESTIONS
Actual Qs and Ans Expert-Verified Explanation
This Exam contains:
-Guarantee passing score -40 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: generally accepted accounting principles. the standards and rules the accountants follow while recording and reporting financial activities
Answer:
GAAP Question 2: the principles of rightand wrong that guide an individual to in making decisions
Answer:
ethics
Question 3: financial rights to the assets of a business
Answer:
equities
Question 4: the difference between the increases and decreases in an account
Answer:
account balance
Question 5: a sake for which payment will be received at a later date
Answer:
sale on account
Question 6: a business that performs an activity for a fee
Answer:
service business
Question 7: when cash is paid for expenses the business has more q=equity
Answer:
false
Question 8: the difference between personal assets and personal liabilities
Answer:
personal net worth
Question 9: the difference between assets and liabilities
Answer:
equity Question 10: a formal report that shows what an individual owns, what an individual owes, and the difference between the two
Answer:
net worth statement Question 11: keeping personal and buysiness records separate is an aplication of the businesss entity cincept
Answer:
true Question 12: the equation showing the relationship among assets, liabilities, and owner's equity
Answer:
accounting equation
Question 13: the amount remaining after the values of all liabilities is subtracted from the values of all assets
Answer:
owners' equity Question 14: a planned process designed to compile financial data and summarize the results in accounting records and reports
Answer:
accounting equation
Question 15: a creditor would favor a positive net worth
Answer:
true
Question 16: accounting is the language of business
Answer:
true Question 17: assets such as cash and supplies have value because they can be used to aquire other assets or used to operate a business
Answer:
true
Question 18: an increase in equity resulting from the sale of goods or services
Answer:
revenue Question 19: when a company pays insurance premiums in adnavce to an insurer, it records the payment as a liability because the insurer owes future coverage
Answer:
true?Question 20: the process of planning, recording, analyzing, and interpreting financial information
Answer:
accounting
Question 21: anything of value that is owned
Answer:
asset
Question 22: the use of ethics in making business decisions
Answer:
business ethics
Question 23: the name given to an account
Answer:
account title Question 24: recording business costs in terms of hours required to complete projects is an application of the unit of measurement concept
Answer:
false
Question 25: a person or business to whom a liability is owen
Answer:
creditor Question 26: a record that summarizes all the transactions pertaining to a single item in the accounting equation
Answer:
account Question 27: a formal written document that describes the nature of a business and how it will operate
Answer:
business plan Question 28: the accounting equation does not have to be in balance to be correct
Answer:
false
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