ACCOUNTING

Accounting records the economic activities of a business and classifies them into useful categories

• True

• False

The entity concept states that a company's transactions should not be accounted from separately to other entities

• True

• False

The revenue recognition principle dictates that revenue should be recognized when payment is received, regardless of when goods or services are delivered

• False

• True

Auditing is a branch of accounting that deals with the recording of business transactions and preparation of financial statements.

• True

• False

The Stable Monetary Unit Concept assumes that the purchasing power of the peso remains stable over time, allowing for accurate financial recording.

• True

• False

Cost accounting involves the collection, allocation, and control of the cost of producing goods and services.

• True

• False

Liabilities represent obligations of the business to external parties and result in an outflow of resources embodying economic benefits.

• True

• False

in a sole proprietorship, there are multiple owner's equity accounts to represent each partner's interest.

• True

• False

Gains are increases in economic benefits and are different from revenue in that they may or may not arise from ordinary activities

• False

• True

The objectivity principle ensures that accounting records are based on subjective opinions to avoid disputes

• False

• True