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WorksheetsAccounting Coach (3/8/2024)
Total questions: 11
Worksheet time: 4mins
The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?
Cost
Economic Entity
Monetary Unit
Which principle/guideline requires a company's balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount?
Cost
Economic Entity
Monetary Unit
Under which inventory cost flow assumption is the cost of the most recent purchase matched first with sales revenues?
FIFO
LIFO
Average
Under which inventory cost flow assumption is the cost of the most recent purchases likely to remain in inventory?
FIFO
LIFO
Average
Which principle/guideline justifies a company violating an accounting principle because the amounts are immaterial?
Conservatism
Full Disclosure
Materiality
A company borrowed $100,000 in December and will make its only payment for interest when the note comes due six months later. The total interest for the six months will be $3,600. On the December income statement the accountant reported Interest Expense of $600. This action was the result of which accounting principle/guideline?
Matching
Costsdf
Adjusting entries help to achieve the (a) principle.
Full (a) is achieved through the notes to the financial statements.
Inventory is often reported at the (a) of cost or net realizable value.
The annual cost of goods sold divided by the average inventory balances is the inventory (a) ratio.
The U.S. government agency with authority over the reporting requirements of corporations whose stock is publicly traded in the U.S. is the Securities and (a) Commission.
