Accounting Principles

Question 0

Monetary unit assumption

Answer 0

On the transaction data that can be expressed in terms of money is to be included in the accounting records.

Question 1

Cost principle

Answer 1

Acid should be recorded at the cost. Cost is the value exchanged the time something is acquired.

Question 2

Economic entity assumption

Answer 2

And economic in any organization or unit in society

Question 3

Assets

Answer 3

The resources owned by a business. They are things of value that are used to carry out activities such as the production and distribution of merchandise.
Every asset has the capacity to provide future services or benefits to the entities that use it

Question 4

Liabilities

Answer 4

Liabilities are claims against assets. Liabilities are existing debts and obligations.

Question 5

Revenues

Answer 5

Revenues are the gross increase in owners equity that result from business activities performed to earn income. Generally revenues result from the sale of merchandise the performance of services the rental property and the lending of money.

Question 6

Expenses

Answer 6

Expenses are the decreases in owners equity that result from operating the business they are the costs of assets consumed or services used in the process of earning revenue.

Question 7

Net income

Answer 7

When the revenue exceeds expenses

Question 8

Net loss

Answer 8

When expenses exceed revenue

Question 9

Double entry accounting

Answer 9

Your quality of the basic accounting crazy must always be preserved there for each transaction must have a dual effect on the equation.
i:

Question 10

f an individual asets is increased, there must be a corresponding:

Answer 10

1. Decrease in another asset, or increase in a liability, or increase in owners equity.