Accounting CH 1

Question 1

According to the fraud triangle, three factors must be present to for a person to commit fraud

Answer 1

Opportunity, Pressure, and Rationalization

Question 2

What are Generally accepted accounting principles? (GAAP)

Answer 2

Concepts and rules that govern financial accounting practice

Question 3

All of the following are part of the FASB conceptual framework:

Answer 3

Objectives, Elements, Recognition and measurement, and Qualitative characteristics

Question 4

The four general accepted accounting principles are as follows

Answer 4

Full disclosure, Expense Recognition, Revenue Recognition, and Measurement

Question 5

Data analytics

Answer 5

is a process of analyzing data to identify meaningful relations and trends

Question 6

An employee having trouble paying his bills might exhibit the following fraud factor as

Answer 6

Pressure

Question 7

GAAP wants information to have

Answer 7

relevance and faithful representation

Question 8

Revenue recognition is received when

Answer 8

Goods and services are provided to customers

Question 9

Equity is composed of equity and

Answer 9

retained earnings

Question 10

A corporations equity is composed of two main parts:

Answer 10

Retained earnings and Contributed capitol

Question 11

Dividends are

Answer 11

resources paid to the stockholders

Question 12

A single line means

Answer 12

an addition or subtraction

Question 13

Double line means

Answer 13

Final totals

Question 14

Is notes receivable a asset or liability

Answer 14

Asset

Question 15

Owners capitol

Answer 15

equity account

Question 16

Notes receivable acquire

Answer 16

interest

Question 17

Notes Receivable is a written promise that

Answer 17

you pay a specific amount of money at a future date

Question 18

Chart of Accounts

Answer 18

a list of all ledger accounts in a business and includes an identification number assigned to each account

Question 19

A T account represents

Answer 19

a ledger account

Question 20

Which accounts have a normal credit balance

Answer 20

Revenues, Accounts Payable, Common Stock, and Unearned Revenues

Question 21

Posting is when

Answer 21

you transfer journal entry to ledger

Question 22

Normal debit balance

Answer 22

Expenses, Dividends, and Assets

Question 23

Which statements are calculated over a period of time

Answer 23

income, cash flows, retained earnings

Question 24

Recievable + Prepaid

Answer 24

an asset

Question 25

Equipment

Answer 25

Asset

Question 26

Unearned

Answer 26

Liability

Question 27

Assets increase on the (r) or (l) side

Answer 27

left

Question 28

Liabilities + Equity increase on the (r) or (l) side

Answer 28

right

Question 29

Assets decrease on

Answer 29

the right side

Question 30

Liabilities and equity decreases on the

Answer 30

left slide

Question 31

debit

Answer 31

left

Question 32

credit

Answer 32

right

Question 33

the normal ending balance for an account is the

Answer 33

same side as its increase

Question 34

assets have normal

Answer 34

debit balances