Exam Review

What is Prepaid Rent's classification on the balance sheet?

• Current Liability

• PPE

• Current Asset

• Stockholder's Equity

How are Short Term Investments classified on the balance sheet?

• Current liability

• Current asset

• Long-term Liability

• Intangible asset

How do you classify Notes Payable - current portion on the balance sheet?

• Long term liability

• Current Liability

• Stockholder's Equity

• Intangible assets

How is unearned revenue classified on the balance sheet?

• Current Asset

• Stockholder's equity

• Current Liability

• Long-term liability

What accounting standard is used in the United States?

• IASC

• FASB

• GAAP

• Cash accounting

What is the correct order of Financial Statements?

• Balance sheet, Income statement, Statement of R/E, and Cash Flows

• Income statement, Statement of R/E, Cash Flows, and Balance sheet

• Statement of R/E, Income statement, Cash flows, and Balance sheet

• Income statement, Statement of R/E, Balance Sheet, and Cash flows

Kayla is a tutor and tutored a student last week, but has not been paid yet. She records this transaction in her books. What accounting principle is she using?

• Historical cost

• Revenue Recognition

• Matching principle

• Separate entity

Cam is a corporation owner who takes a trip to Cabo. He records his Cabo expenses in his own books. What GAAP principle is he assuming?

• Periodicity

• Historical cost

• Separate entity

• Full disclosure

Who set up GAAP rules we use today?

• PCAOB

• SEC

• IASC

• FASB

Where do we post journal entries?

• General ledger

• Balance sheet

• General journal

• T Account