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Worksheetsaccounting principles
Total questions: 15
Worksheet time: 8mins
Communication of economic events is the part of the accounting process that involves
identifying economic events.
quantifying transactions into dollars and cents.
preparing accounting reports.
recording and classifying information
The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the ______________.
economic entity assumption
monetary unit assumption
cost principle
both b and c
Financial statements combining the operations of Juan Cruz and J. Cruz Plumbing Services would violate the ______________.
economic entity assumption
monetary unit assumption
ownership assumption
cost principle
''GAAP'' refers to ________________.
Guidelines for Accountants, Accounting Procedures
General Association of Accounting Practitioners
General Accounting and Auditing Principles
Generally Accepted Accounting Principles
The accounting process involves all of the following EXCEPT___
identifying economic transactions that are relevant to the business.
communicating financial information to users by preparing financial reports.
recording non-chronological events measured in dollars.
analyzing and interpreting financial reports
The accounting process is correctly sequenced as
identification, communication, recording.
recording, communication, identification.
identification, recording, communication.
communication, recording, identification
Which of the following would NOT be considered internal users of accounting data for a company?
The manager of the company.
Salesmen of the company.
Creditors of the company.
production supervisor of the company
Which of the following is an external user of accounting information?
Labor unions.
Finance directors.
Company officers.
Managers.
A business organized as a corporation______
is not a separate legal entity in most states.
requires that stockholders be personally liable for the debts of the business.
is owned by its stockholders.
terminates when one of its original stockholders dies
The proprietorship form of business organization
must have at least three owners
owner has limited liability for the company debts
legally, the owner has personal liability for the debts of the business
has indefinite life
The basic accounting equation may be expressed as
Assets = Equities.
Assets – Liabilities = Owner's Equity.
Assets = Liabilities + Owner's Equity.
All of these answer choices are correct.
Liabilities are defined as__
future economic benefits.
existing debts and obligations.
possess service potential.
things of value used by the business in its operation.
Owner's equity can be described as
creditorship claim on total assets.
owners' claim against total assets.
benefactor's claim on total assets.
debtor claim on total assets.
Sources of increases to owner's equity are
additional investments by owners.
purchases of merchandise.
withdrawals by the owner.
expenses.
A net loss will result during a time period when
liabilities exceed assets.
drawings exceed investments.
expenses exceed revenues.
revenues exceed expenses.
