/Quiz FIN 204/E2 Financial Management I. Recognize revenue when it is fully earned. II. Match expenses required to generate revenue to the period of recognition. The above two statements are called. O a. Principle of Materiality O b. Matching Principle. O c. Money Measurement Concept O d. Going Concern Concept

/Quiz FIN 204/E2 Financial Management I. Recognize revenue when it is fully earned. II. Match expenses required to generate revenue to the period of recognition. The above two statements are called. O a. Principle of Materiality O b. Matching Principle. O c. Money Measurement Concept O d. Going Concern Concept

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 57BPSB: Problem 1-57B The Fundamental Accounting Equation Information for TTL Inc. is given below. Required:...

See similar textbooks

Similar questions

Cornerstone Exercise 2-23 Debit and Credit Procedures Refer ID the accounts listed below. a. Accounts Payable e. Equipment b. Accounts Receivable f. Common Stock c. Retained Earnings g. Salary Expense d. Sales h. Repair Expense Required: For each of the acmums1 complete the following table by entering the normal balance of the account (debit or credit) and the word increase or decrease in the debit and credit columns.
Indicate whether each account that follows has a normal debit or credit balance. A. Unearned Revenue B. Office Machines C. Prepaid Rent D. Cash E. Legal Fees Earned F. Salaries Payable G. Dividends H. Accounts Receivable I. Advertising Expense J. Retained Earning
Multiple choice: 1. Which if the following us correct concerning a T account? A. The left side is the decrease side for assets B. The right side is the decrease side for liabilities C. The right side is the increase side for revenue D. The left side is the decrease side for expenses 2. Which of the following is not true concerning T accounts? A. The right side of a revenue account is an increase B. The left side of an expense account is an increase C. The left side of an asset account is an increase D. The left side of a liability account is an increase
Multiple choice: 1. Which of the following are the all temporary accounts? A. Liabilities, revenues and expenses B. Revenues, expenses and withdrawals C. Revenues, expenses and capital D. Assets, revenues and withdrawals 2. The income summary account is closed to the: A. Cash account B. Withdrawals account C. Service revenue account D. Capital account
Question 1Identify whether the following group of people belongs to internal or external users ofannual reports for a company. Eexplain their need for financial information.a. Johari, investment banker of CIMB Investment Bank.b. Daisy Ong, purchasing manager of the company.c. Happy Berhad, supplier of the company.d. Great Sdn Bhd, regular customer of the company.e. Amy, officer from Inland Revenue Board.
Directions: Choose the letter corresponding to the correct answer for each of the questionsprovided below.1. Accounts receivable or the amount to be received when a customer orders on accountis an example of what account?a. Asset c. Equityb. Liability d. All of the above2. Expenses incurred on paying utilities belong to what type of account?a. Asset c. Equityb. Liability d. All of the above3. If Company A borrows money from company B, the transaction results toa. Increase in asset of A and increase in asset in Bb. Increase in asset of A and decrease in equity of Bc. Increase in asset of A and no effect on assets of Bd. Both B and C4. Equity means assets minus liabilities. Other terms that can be used synonymously withequity are the following except :a. Capital c. Net worthb. Net assets d. Profit5. Sources of legal obligation are the following excepta. The law c. Debtsb. Contracts d. Other operation by law
1. Explain and describe the type of information needed by each of these users: Revenue expenses profitability debt 2. Explain each accounting principles Accrual principle Conservatism principle Consistency principle Cost principle Economic entity principle Full disclosure principle Going concern principle Matching principle Materiality principle Monetary unit principle Reliability principle Revenue recognition principle Time period principle 3. Define and explain each qualitative characteristics of useful financial information: Verifiability Timeliness Understandability Comparability 4. Differentiate the types of business according to its activity: Service business Merchandising business Manufacturing business
Question2Question 1 (b) You have been asked by one of your friends to explain some of the items included in the Balance Sheet of Synlait and A2 Milk. For each of the items listed and using the Question 1 (b) Template provided, you are required to: describe what each item represents (provide an answer that covers both companies, you do not need to answer it for each company). indicate according to accounting policy how each of the items are measured (in some cases no answer is required for that item). provide the total value of the item from the 2020 financial statements for both companies, give details (including the note number) of where the information on each item is located within both consolidated financial statements of the companies. provide reasons for its classification as either current or non-current asset/liability or equity using only the information provided in the financial statements or lecture recordings. discuss one difference found in the notes to the items…
Hh1. Account Choose the stakeholder that is MOST likely to ask the following question. Will the business be able to pay for its purchases on time? Select one: a. Canada Revenue Agency management of a retailer b. c. business owner d. lender (e.g. banker) e. supplier (e.g. a wholesaler) f ou mor
Multiple choice: 1. The drawing account should be used to show A. The amount the owner has invested in the Business B. The amount the owner has taken out of the business C. The amount the business has earned D. The amount yhe business has spent 2. The purchase of an asset on account and making a partial payment results in all of the following EXCEPT A. An increase in an asset account B. A decrease in the Cash account C. A balanced accounting equation D. An increase in owner's equity
Multiple choice: 1. This includes money or its equivalent that is readily available for unrestricted use. A. Money expense B. Cash expense C. Cash D. Cash payable 2. Which of the following statements is correct? A. Financial accounting is the branch of accounting that deals with the specific needs of an entity’s management. B. The internal users of accounting information include management, owners and creditors. C. The external users of accounting information include potential and existing investors and lenders and other creditors. D. Government accounting is the branch of accounting that deals with the analysis of the costs of products and services.
Q19 Ms. Sabiha submitted the financial reports of the company in a theoretical form, whereas she needs to draft in to a tabular form showing proper statistics so that the report is immediately understood by the users. Which feature of useful financial information is neglected by Ms. Sabiha? a. Timeliness b. Relevance c. Comparability d. Understandability