Pop Quiz 1 BasAcc

The ________ concept assumes that the business has an indefinite economic life.

• accounting entity

• accounting period

• going concern

• objectivity

Which of the following is not one of the three types of business activities?

• Investing

• Financing

• Marketing

• Operating

Which of the following is considered bookkeeping?

• analyzing

• reporting

• recording

• summarizing

A business which prepares financial statements every year is following the _________ concept.

• accounting entity

• periodicity

• going concern

• objectivity

Which accounting concept should be considered if the owner of a business takes goods from inventory for his personal use?

• accounting entity

• periodicity

• going concern

• objectivity

Assets are usually valued under which basis?

• Replacement cost

• Historical cost

• Net Realizable Value

Which type of business organization is owned by stockholders?

• Corporation

• Partnership

• Proprietorship

• All of the above are owned by stockholders

The accounting equation can be stated as

• A+L-E = 0

• A-L+E = 0

• -A + L - E = 0

• A - L - E = 0

Which of the following has a normal debit balance?

• Accounts Payable

• Accrued Taxes

• Accumulated Depreciation

• Uncollectible Expense

Which of the following is true?

• The debit is on the right side of an asset account

• The debit is on the left side of an asset account

• The credit is on the left side of a liability account

• The debit is on the right side of an expense account