Questions from Financial Accounting

Q: Presented below are the four assumptions and four principles used in measuring

Presented below are the four assumptions and four principles used in measuring and reporting accounting information. Assumptions Principles a. Economic entity e. Historical cost b. Going-concern...

Q: Which of the following is not a benefit derived from the conceptual

Which of the following is not a benefit derived from the conceptual framework? a. Supports the objective of providing information useful for making business and economic decisions. b. Provides a logic...

Q: Which of the following is not a characteristic of useful information?

Which of the following is not a characteristic of useful information? a. Comparability b. Relevance c. Faithful representation d. Conservatism

Q: Information that provides feedback about prior expectations is: Relevant

Information that provides feedback about prior expectations is: Relevant Faithfully Represented a. Yes Yes b. No Yes c. Yes No d. No No

Q: Relevant information possesses this quality: Freedom from Error

Relevant information possesses this quality: Freedom from Error Predictive Value a. Yes Yes b. No Yes c. Yes No d. No No

Q: Which of the following is not an assumption that underlies accounting?

Which of the following is not an assumption that underlies accounting? a. Historical cost b. Economic entity c. Time-period d. Going-concern

Q: An analysis of the transactions of Cavernous Homes Inc. yields the

An analysis of the transactions of Cavernous Homes Inc. yields the following totals at December 31, 2019: cash, $3,200; accounts receivable, $4,500; notes payable, $5,000; supplies, $8,100; common sto...

Q: Which principle requires that expenses be recorded and reported in the same

Which principle requires that expenses be recorded and reported in the same period as the revenue that it helped generate? a. Historical cost b. Revenue recognition c. Conservatism d. Expense recognit...

Q: Taylor Company recently purchased a piece of equipment for $2,

Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days after delivery. At what point would the event be recorded in Taylor’s accounting system? a. When Tay...

Q: The effects of purchasing inventory on credit are to: a

The effects of purchasing inventory on credit are to: a. increase assets and increase liabilities. b. increase assets and increase stockholders’ equity. c. decrease assets and decrease stockholders’ e...