Exam (elaborations)
Accounting Principles exam with verified correct answers
- Course
- Institution
Accounting Principles exam with verified correct answers
[Show more]
Seller
Follow
BRAINBOOSTERS
Reviews received
Content preview
Accounting Principles exam withverified correct answers
The personal assets of the owner of a company will not appear on the company's balance sheet
because of which principle/guideline? - answer economic entity
Which principle/guideline requires a company's balance sheet to report its land at the amount
the company paid to acquire the land, even if the land could be sold today at a significantly
higher amount? - answer cost
The cost principle requires the accountant to show assets at cost and expenses at cost rather
than at higher amounts. Accountants are not allowed to recognize gains from merely holding
the land. To be able to recognize a gain on the land, the company would have to sell the land.
Which principle/guideline allows a company to ignore the change in the purchasing power of
the dollar over time? - answer monetary unit
Which principle/guideline requires the company's financial statements to have footnotes
containing information that is important to users of the financial statements? - answer full
disclosure
Which principle/guideline justifies a company violating an accounting principle because the
amounts are immaterial? - answer materiality
Which principle/guideline is associated with the assumption that the company will continue on
long enough to carry out its objectives and commitments? - answer going-concern
A very large corporation's financial statements have the dollar amounts rounded to the nearest
$1,000. Which accounting principle/guideline justifies not reporting the amounts to the penny?
- answer materiality
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81531 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now