Identify the correct statements from the following:l. Accounting starts where book keeping ends.II. Book keeping is process of analyzing, interpreting and communicating financial transactions. a. Statement IlI only correct O b. Both Statements are correct c. Statement I only correct d. Both Statements are wrong

Identify the correct statements from the following:l. Accounting starts where book keeping ends.II. Book keeping is process of analyzing, interpreting and communicating financial transactions. a. Statement IlI only correct O b. Both Statements are correct c. Statement I only correct d. Both Statements are wrong

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.15MCE

See similar textbooks

Similar questions

What is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changes
The words debit and credit are used in two ways in accounting: to debit an account and a debit balance. Explain both usages of the terms debit and credit.
Which of these accounts commonly requires both debit and credit entries? A. Sales Revenue B. Utilities Expense C. Accounts Receivable D. Common Stock
Which of the following accounting records is the main source of information used to prepare the financial statements? A. journal entries B. T-accounts C. trial balance D. chart of accounts
Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Which of the following accounts will normally have a debit balance? A. Common Stock B. Fees Earned C. Supplies D. Accounts Payable
The matching principle in accounting requires the matching of debits and credits.
The Effect of Transactions on the Accounting Equation For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of each of the elements of the accounting equation.
Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. Accrual-basis accounting records both cash and noncash transactions when they occur. Generally accepted accounting principles require companies to use cash-basis accounting. The key elements of accrual-basis accounting are the revenue recognition principle, the expense recognition principle, and the historical cost principle.
Consider the following accounts, and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Payable B. Cash C. Dividends D. Notes Payable
Which of the following does not accurately represent the accounting equation? A. B. C. D.
Which of the following statements are true?An accounting Conceptual Framework:(i) Sets out who the users of the accounts are and how it is to be used (ii) Is not an obligatory piece of legislation(iii) Defines concepts such as going concern, relevance and materiality a) All of the above is trueb) Only (i) is truec) Only (ii) and (iii) is trued) (i) and (iii) is true