accounting basics

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

• Balance Sheet

• Income Statement

• Statement of Cash Flow

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the

• Balance Sheet

• Income Statement

• Statement of Cash Flows

Under the accrual basis of accounting, revenues are reported in the accounting period when the

• Cash Is Received

• Service Or Goods Have Been Delivered

Assets are usually reported on the balance sheet at which amount?

• Cost

• Current Market Value

• Expected Selling Price

• Present Value

Under the accrual basis of accounting, expenses are reported in the accounting period when the

• Cash Is Paid

• Expense Matches The Revenues Or Is Used Up

• both correct

• none of the above

The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?

• Cost

• Economic Entity

• Monetary Unit

• Conservatism

Which principle/guideline justifies a company violating an accounting principle because the amounts are immaterial?

• Conservatism

• Full Disclosure

• Materiality

Public utilities' balance sheets list the plant assets before the current assets. This is acceptable under which accounting principle/guideline?

• Conservatism

• Cost

• Industry Practices

A corporation pays its annual property tax bill of approximately $12,000 in one payment each December 28. During the year, the corporation's monthly income statements report Property Tax Expense of $1,000. This is an example of which accounting principle/guideline?

• Conservatism

• Matching

• Monetary Unit

Which principle/guideline is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?

• Economic Entity

• Going Concern

• Time Period

• Full Disclosure