99.
The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the
inflow of assets associated with revenue to be in a form other than cash, and (3)
measures the amount of revenue as the cash plus the cash equivalent value of any
noncash assets received from customers in exchange for goods or services, is called the:
100.
The question of when revenue should be recognized on the income statement according to
GAAP is addressed by the:
101.
The International Accounting Standards Board (IASB):
102.
The Superior Company acquired a building for $500,000. The building was appraised at a
value of $575,000. The seller had paid $300,000 for the building 6 years ago. Which
accounting principle would require Superior to record the building on its records at
$500,000?
103.
On December 15 of the current year, Conrad Accounting Services signed a $40,000
contract with a client to provide bookkeeping services to the client in the following year.
Which accounting principle would require Conrad Accounting Services to record the
bookkeeping revenue in the following year and not the year the cash was received?
104.
Marsha Bogswell is the owner of Bogswell Legal Services, Inc. Which accounting principle
requires Marsha to keep her personal financial information separate from the financial
information of Bogswell Legal Services, Inc.?
105.
A limited partnership:
106.
A partnership:
107.
Which of the following accounting principles require that all goods and services purchased
be recorded at actual cost?
108.
Which of the following accounting principles prescribes that a company record its
expenses incurred to generate the revenue reported?
109.
Revenue is properly recognized:
110.
Which of the following purposes would financial statements serve for external users?
111.
In a business decision where there are ethical concerns, the preferred course of action
should be one that:
112.
If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting
equation would be:
113.
If a company receives $12,000 from the stockholders to establish a corporation, the effect
on the accounting equation would be:
114.
If a company purchases equipment costing $4,500 on credit, the effect on the accounting
equation would be:
115.
An example of a financing activity is:
116.
An example of an operating activity is:
117.
Operating activities:
118.
An example of an investing activity is:
119.
Net Income:
120.
If equity is $300,000 and liabilities are $192,000, then assets equal:
121.
If assets are $300,000 and liabilities are $192,000, then equity equals:
122.
Resources a company owns or controls that are expected to yield future benefits are:
123.
Increases in equity from a company’s sales of products or services are:
124.
The difference between a company’s assets and its liabilities, or its net assets, is:
125.
Creditors’ claims on the assets of a company are called:
126.
Decreases in equity that represent costs of providing products or services to customers,
used to earn revenues are called:
127.
The description of the relation between a company’s assets, liabilities, and equity, which is
expressed as Assets = Liabilities + Equity, is known as the:
128.
Revenues are:
129.
If assets are $99,000 and liabilities are $32,000, then equity equals:
130.
Another name for equity is:
131.
When expenses exceed revenues, the resulting change in equity is:
132.
A resource that the stockholder receives from the company is called a(n):
133.
Distributions of cash or other resources by a business to its stockholders are called:
134.
The assets of a company total $700,000; the liabilities, $200,000. What are the net
assets?