Exam 1: An Introduction to Accounting

Select the basic assumptions and principles underlying financial statements. -Circumstances and events that make a difference to financial statement users should be disclosed.

If total liabilities decreased by $14,000 during a period of time and equity increased by $6,000 during the same period, then the change in total assets is:

The accounting entity concept states that each entity:

Select whether each item would appear on : -Accounts Payable

Select whether each item would appear on : -Equipment

Select whether each item would appear on : -Income Tax Payable

One advantage of the company form of business structure is that:

Classify each of these items as : -Cash

Included among current liabilities on a classified statement of financial position would be:

Match the items by selecting the appropriate code letter : -Creditor claims against the assets of the business.

Match the items by selecting the appropriate code letter : -Accumulated profit that has not been distributed as dividends to owners.

Select the basic assumptions and principles underlying financial statements. -Only transaction data that can be accurately expressed in terms of money should be included in the accounting records.

Select whether each item would appear on : -Water and Light Expense

The sole trader form of business organisation:

Cash is usually classified as:

Select whether each item would appear on the statement of cash flows as : -Cash payments to suppliers.

For the items listed , select the appropriate code letter whether the item is : -Accounts Receivable

Select whether each item would appear on : -Advertising Expense

The Financial Reporting Council (FRC) is responsible to the government for:

For the items listed , select the appropriate code letter whether the item is : -Insurance Expense