Accounting for Mdsg. Business

The financial statements be stated in terms of a common financial denominator.

• Accrual

• Going Concern

• Time period

• Stable monetary unit

Debiting an asset account with a normal debit balance will result in

• Neither an increase nor decrease in the asset account.

• Either an increase or decrease in the asset account.

• A decrease in the asset account.

• An increase in the asset account

The encompass the conventions, rules, and procedures necessary to define what is accepted accounting practice.

• Accounting assumptions

• Accounting concepts

• Conceptual frameworks

• GAAP

This principle requires relevant information to form part of financial statements for decision-making purposes.

• Objectivity

• Materiality

• Adequate disclosure

• Accounting entity

Which of the following is not an expense account?

• Prepaid expense

• Taxes and licenses expense

• Supplies expense

• Wages expense

Which of the following accounting concepts states that an accounting transaction should be supported by sufficient evidence to allow two or more qualified individuals to arrive at an essentially similar conclusion?

• Matching

• Objectivity

• Periodicity

• Stable monetary unit

Which of the following is not an asset account?

• Prepaid Rent

• Account Receivable

• Building

• None of the above

Which of the following is NOT a revenue account?

• Professional fees income

• Interest income

• Cost of sales

• Sales

Which of the following is a liability account?

• Advances from clients

• Advance to employees

• Notes receivable

• Utilities expense

Debiting a liability account with a normal credit balance will result in

• Neither an increase nor decrease in the liability account.

• Either an increase or decrease in the liability account.

• A decrease in the liability account.

• An increase in the liability account