п»ї1. The assumption which a business could remain in operation into the future is a:
a. Famous cost theory.
b. Unit-of-measure assumption.
c. Continuity supposition. *
d. Separate-entity presumption.
2 . Product sales revenue ought to be recognised the moment goods and services have been completely supplied; costs are sustained when goods and services have been received. Which accounting concept regulates the above?
a. The wisdom concept
b. The materiality idea
c. The accruals idea *
deb. The dual accept strategy
3. Which accounting principle requires that foreseen failures should be predicted and taken into account immediately?
a. The regularity concept
w. The accruals concept
c. The discretion concept 5.
d. The going matter concept
some. In times of increasing prices, what effect will the use of the historical expense concept have got on a provider's asset principles and revenue?
a. Advantage values and profit both understated
w. Asset values and profit both over-stated
c. Property values understated and profit overstated 5.
d. Property values over-stated and income understated.
five. Which with the following assertions about stockholders' equity can be not correct?
a. Stockholders' equity may be the shareholders' residual interest in the company resilting in the difference in assets and liabilities. w. Stockholders' value accounts will be increased with credits. c. Stockholders' fairness results from contributions from the owners. 2. d. The purchase of land for cash has no stockholders' equity.
6. Which of theВ following ventures would trigger retained profits to increase?
a. Collection of a customer's accounts
b. Mortgage from a bank
c. Sale of service to a customer 2.
d. Income costs payable to personnel
7. Which usually of theВ following events can cause retained earnings to increase?
a. Dividends reported
b. Net gain reported 5.
c. Net loss reported
d. Issuance of stock
8. Which will of the following liability accounts is usually unsatisfied by payment of cash?
a. Accounts payable
b. Unearned revenues 2.
c. Income taxes payable
deb. All of these happen to be satisfied by paying funds
9. The purchase of products for money would
a. Not transform total possessions. *
m. Increase total assets.
c. Increase debts.
d. Lower liabilities
10. Everest Company received $150, 000 money invested by simply its owners. The effect on the accounting formula was:
a. assets and liabilities every increased simply by $150, 000.
b. property and revenues each increased by $150, 000.
c. stockholders' value and income each elevated by $150, 000. g. stockholders' collateral and resources each improved by $150, 000 5.
11. What is the purpose of charging depreciation?
A. To allocate the cost of a noncurrent advantage over the accounting periods anticipated to benefit from it is use *** B. To ensure funds are around for the final replacement of the non-current property C. To reduce the cost of a non-current asset in the declaration of financial placement D. To comply with the prudence idea
12. A company's Permitting for Doubtful Accounts contains a credit harmony of $15, 000. It learns that one of its accounts receivable amounting to $1, 800 is useless and needs to be written away. Which bank account should be debited for $1, 800 the moment writing from the account? Allowance for Doubtful Accounts
13. Under the immediate write away method, which will account can be debited each time a company creates off the accounts receivable? Bad debts expenditure (Dr Debt expense Crystal reports Accounts receivable)
16. A business accounts receivable minus its allowance intended for doubtful accounts equals the net ________________ worth of the accounts receivable. Net realizable benefit or book value (carrying)
15. Firm S received money in enhance of offering services to Company P. The money received before it can be earned can be an increase to Company S's asset consideration Cash. The total amount unearned should also be reported as: A liability (Unearned revenue)
of sixteen. The products on hand cost stream assumption in which the cost of the newest...