GAAP Review

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

• Business Entity

• Going Concern

• Objective Evidence

• Realization of Revenue

Mr. Bean took a client out for a business lunch, he did not provide his accountant with a receipt for this transaction. What GAAP did he violate?

• Business Entity

• Objective Evidence

• Unit of Measurement

• Historical Cost

Which GAAP directs a company to show all the expenses related to its revenues of a specified period even if the expenses were not paid in that period?

• Going Concern

• Objective Evidence

• Realization of Revenue

• Matching Expenses with Revenue

A company sold merchandise of $8,000 to a customer in December. The company's sales terms require the customer to pay the company in 30 days. The company's income statement reported the sale in December. This is proper under which GAAP?

• Matching Expenses with Revenue

• Historical Cost

• Realization of Revenue

• Business Entity

Which GAAP requires that all accounting records and statements are prepared as though the business will

continue even after the present owner is gone?

• Business Entity

• Going Concern

• Unit of Measurement

• Adequate Disclosure

Mr. Bean prepares quarterly financial statements to stakeholders to report his companies financial standing. What GAAP is Mr. Bean folloiwng?

• Realization of Revenue

• Adequate Disclosure

• Accounting Period Cycle

• Business Entity

Dodo Bird Inc incurred large losses in its third quarter but did not include these on its annual financial statements. This is in violation of which GAAP?

• Adequate Disclosure

• Consistent Reporting

• Realization of Revenue

• Historical Cost

This GAAP states that a company or business must account for and record all assets at the original cost or purchase price.

• Adequate Disclosure

• Unit of Measurement

• Historical Cost

• Consistent Reporting

In 2020, Dodo Bird Inc reported its profits in terms of the number of Dodo birds sold, in 2021 it reported its profits in terms of the amount of weight of birds sold. This violates which GAAP?

• Adequate Diclosure

• Realization of Revenue

• Consistent Reporting

• Unit of Measurement

In Canada, financial statements are recorded in Canadian dollars, this is a requirement of which GAAP?

• Realization of Revenue

• Historical Cost

• Going Concern

• Unit of Measurement