Questions from Financial Accounting

Q: Identify the four assumptions that underlie accounting.

Identify the four assumptions that underlie accounting.

Q: Discuss the four principles that are used to measure and record business

Discuss the four principles that are used to measure and record business transactions.

Q: Listed below are three independent scenarios. / Required

Listed below are three independent scenarios. Required: Use the fundamental accounting equation to find the missing amounts.

Q: How are the financial statements related to generally accept accounting principles?

How are the financial statements related to generally accept accounting principles?

Q: Of all the events that occur each day, how would you

Of all the events that occur each day, how would you describe those that are recorded in a firm’s accounting records?

Q: In order for a transaction to be recorded in a business’ accounting

In order for a transaction to be recorded in a business’ accounting records, the effects of the transaction must be faithfully represented. What is faithful representation, and why is it important?

Q: What is the basic process used in transaction analysis?

What is the basic process used in transaction analysis?

Q: In analyzing a transaction, can a transaction only affect one side

In analyzing a transaction, can a transaction only affect one side of the accounting equation? If so, give an example.

Q: How do revenues and expenses affect the accounting equation?

How do revenues and expenses affect the accounting equation?

Q: What is a T-account? Describe the basic components of

What is a T-account? Describe the basic components of any account.