Accountants assume that the dollar’s purchasing power is stable. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Sunlight Company has assets and equity that amount to $200,000 and $90,000, respectively. Liabilities total ________. A) $90,000 B) $110,000 C) $200,000 D) $290,000 ANSWER B .Liabilities = Assets – Equity Liabilities = 200,000 – 90,000 = 110,000
Date: September 2nd, 2020
International Financial Reporting Standards (IFRS) is the main U.S. accounting rule book and is currently created and governed by the Financial Accounting Standards Board. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The assets of Moon Company are $160,000 and the total liabilities are $60,000. The equity is ________. A) $160,000 B) $220,000 C) $60,000 D) $100,000 ANSWER D .Equity = Assets – Liabilities Equity = 160,000 – 60,000 = 100,000
Date: September 2nd, 2020
A publicly traded company in the United States does not come under Securities and Exchange Commission regulations as long as it follows the rules of GAAP. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
What is the accounting equation? Briefly explain each of the three parts. What will be an ideal response ANSWER Assets = Liabilities + Equity. Assets are economic resources that are expected to benefit the business in the future. They are things of value that a business owns or has control of. Liabilities are debts that […]
Date: September 2nd, 2020
International Financial Reporting Standards are comparatively more specific and more rule-based than U.S. GAAP. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
In a limited-liability company, the ________. A) members are personally liable to pay the entity’s debts B) business pays income tax on earnings C) members are liable for each other’s actions D) members pay income tax on their share of earnings ANSWER D
Date: September 2nd, 2020
Joshua Thomas Corporation manufactures and retails computer hardware. The president of the corporation bought a new car as a gift for his daughter and paid for it using cash from the business Since the corporation paid for the car, it was recorded in its books as an asset. Which of the following concepts or principles […]
Date: September 2nd, 2020
Johnson Company purchased land for $30,000. The president of Johnson Company believes that the land is actually worth $35,000. The land can be recorded at $35,000. Indicate whether the statement is true or false ANSWER FALSE .The cost principle states that acquired assets are recorded at their actual cost.
Date: September 2nd, 2020
