accounting principles

Communication of economic events is the part of the accounting process that involves

• identifying economic events.

• quantifying transactions into dollars and cents.

• preparing accounting reports.

• recording and classifying information

The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the ______________.

• economic entity assumption

• monetary unit assumption

• cost principle

• both b and c

Financial statements combining the operations of Juan Cruz and J. Cruz Plumbing Services would violate the ______________.

• economic entity assumption

• monetary unit assumption

• ownership assumption

• cost principle

''GAAP'' refers to ________________.

• Guidelines for Accountants, Accounting Procedures

• General Association of Accounting Practitioners

• General Accounting and Auditing Principles

• Generally Accepted Accounting Principles

The accounting process involves all of the following EXCEPT___

• identifying economic transactions that are relevant to the business.

• communicating financial information to users by preparing financial reports.

• recording non-chronological events measured in dollars.

• analyzing and interpreting financial reports

The accounting process is correctly sequenced as

• identification, communication, recording.

• recording, communication, identification.

• identification, recording, communication.

• communication, recording, identification

Which of the following would NOT be considered internal users of accounting data for a company?

• The manager of the company.

• Salesmen of the company.

• Creditors of the company.

• production supervisor of the company

Which of the following is an external user of accounting information?

• Labor unions.

• Finance directors.

• Company officers.

• Managers.

A business organized as a corporation______

• is not a separate legal entity in most states.

• requires that stockholders be personally liable for the debts of the business.

• is owned by its stockholders.

• terminates when one of its original stockholders dies

The proprietorship form of business organization

• must have at least three owners

• owner has limited liability for the company debts

• legally, the owner has personal liability for the debts of the business

• has indefinite life