SB CHP.2 ACCY 200 EXAM 1; Questions &
Answers 100% Verified
If the total assets is equal to $15,000 and the total liabilities is equal to $9,000, then:
Correct answer-the total stockholders' equity is equal to $6,000.
Companies are not allowed to switch back and forth between alternative ac...
SB CHP.2 ACCY 200 EXAM 1; Questions &
Answers 100% Verified
If the total assets is equal to $15,000 and the total liabilities is equal to $9,000, then:
Correct answer-the total stockholders' equity is equal to $6,000.
Companies are not allowed to switch back and forth between alternative accounting methods
from year to year because of the ___________ concept. Correct answer-consistency
The matching concept means that: Correct answer-expenses incurred to generate
revenues must be matched to revenues earned for any given period
Which of the following statements is true regarding what each financial statement of an entity
reports? Correct answer--The statement of cash flows reports the entity's cash flows
during a period.
-The income statement reports an entity's earnings for a period.
-The balance sheet reports an entity's financial position at the end of a period.
The three concepts/principles that relate to the entire model are: Correct answer-
accounting equation, accounting entity, and going concern
Which of the following items are normally included as key components of a corporation's
annual report? Correct answer--A five-year (or longer) summary of key financial data
-The report of the external auditor's examination of the financial statements
-The notes to the financial statements
If the total liabilities is equal to $8,000 and the total stockholders' equity is equal to $4,000,
then: Correct answer-the total assets is equal to $12,000
________________ principle in accounting relates to making judgments and estimates that
result in lower profits and asset valuation estimates rather than higher profits and asset
valuation estimates. Correct answer-Conservatism
An entity's earnings for a reporting period are reported on the: Correct answer-income
statement
The four concepts/principles that relate to the financial statements are: Correct answer-
consistency, full disclosure, materiality, and conservatism
A corporation's annual report contains the reporting firm's financial statements and each of the
following key components, except: Correct answer-the reporting firm's operating budget
for the next fiscal year
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