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The accounting principle that requires accounting information to be based on actual cost instead of current value, is the

• On-Going-concern principle

• Accounting equation.

• Cost principle.

• Accrual principle

• Consistency principle

What is the date to record revenue of the company based on the revenue recognition principle?

• January 12

• January 01

• January 20

• January 05

• It depends

Provide descriptions for this transaction: Increase cash $4,000 and Increase CONTRIBUTED CAPITAL $4,000

• Investment of cash in business by owner or performed services for cash

• Investment of cash in business by owner

• Performed services for cash

• Collected cash from customers

• None of these

Which of the following is not a category or element of the balance sheet?

• Expense

• Liabilities

• Assets

• Account payable

• Loan

At the beginning of 2009, Beta Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During 2009, the company reported total revenues of $226,000 and expenses of $175,000. Also, owner withdrawals during 2009 totaled $48,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of 2009 would be:

• $174,000.

• $78,000.

• Cannot be determined from the information provided.

• $120,000.

• $123,000.

If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?

• Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.

• Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.

• Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.

• There would be no effect on the accounts because the accounts are affected by the same amount.

• None of these.

A company has sales of $350,000, Account Receivable of $50,000 and estimates that 0.7% of its sales are uncollectible. The estimated amount of bad debts expense is:

• $350

• $2,450.

• $3,450.

• $300

• $530.

Depreciation is

• The assigning or allocating of a fixed asset's cost to expense over the accounting periods that the asset is likely to be used.

• The assigning or allocating of a current asset's cost to expense over the accounting periods that the asset is likely to be used.

• The assigning or allocating of an intangible asset's cost to expense over the accounting periods.

• The assigning or allocating of a fixed asset's cost to expense over the accounting periods.

• None of these

Something of value that cannot be physically touched, such as a brand, franchise, trademark, or patent is the definition of

• Tangible assets

• Intangible assets

• Liquidity assets

• Current assets

• Non-current liabilities

Which statement is true?

• Total asset cost plus accumulated depreciation equals book value.

• Total asset cost minus accumulated depreciation equals book value.

• Total asset plus depreciation expense equals book value.

• Total asset minus depreciation expense equals book value.

• None of these.