Question 1

The question of when revenue should be recognized on the income statement (according to GAAP)is answered by the:

Accepted Answer

A)  Revenue recognition principle. 
B)  Going concern principle. 
C)  Monetary unit principle. 
D)  Business entity principle. 
E)  Cost principle. 
A)  Revenue recognition principle. 
B)  Going concern principle. 
C)  Monetary unit principle. 
D)  Business entity principle. 
E)  Cost principle.

Question 2

An audit:

Accepted Answer

A)  Is required for every business. 
B)  Is an independent review of an organization's accounting systems and records. 
C)  Is performed to add credibility to the financial statements. 
D)  Is only performed for companies with computerized accounting systems. 
E)  Is an independent review of an organization's accounting systems and records and is performed to add credibility to the financial statements. 
A)  Is required for every business. 
B)  Is an independent review of an organization's accounting systems and records. 
C)  Is performed to add credibility to the financial statements. 
D)  Is only performed for companies with computerized accounting systems. 
E)  Is an independent review of an organization's accounting systems and records and is performed to add credibility to the financial statements.

Question 3

A statement of financial position is another name for:

Accepted Answer

A)  The income statement. 
B)  The balance sheet. 
C)  The statement of cash flows. 
D)  The statement of changes in equity. 
E)  The accounting equation. 
A)  The income statement. 
B)  The balance sheet. 
C)  The statement of cash flows. 
D)  The statement of changes in equity. 
E)  The accounting equation.

Question 4

Describe the relationship between sales (or revenues),expenses,and profit.

Accepted Answer

Sales,or revenues,are the amou

Question 5

External users include creditors,shareholders,suppliers,and lawyers.

Accepted Answer

A) True 
 B)False

The question of when revenue should be recognized on the income statement (according to GAAP)is answered by the:

An audit:

A statement of financial position is another name for:

Describe the relationship between sales (or revenues),expenses,and profit.

External users include creditors,shareholders,suppliers,and lawyers.

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

Exam 1: Accounting in Business

The question of when revenue should be recognized on the income statement (according to GAAP)is answered by the:

An audit:

A statement of financial position is another name for:

Describe the relationship between sales (or revenues),expenses,and profit.

External users include creditors,shareholders,suppliers,and lawyers.

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters