Chapter 8 Flashcards
Which of the following statements made during a recent discussion about ownership is true
A corporation is subject to income tax unlike a partnership
Individuals to acquire shares in a company do not only assets of the company
Which of the following statement is true
Both sole proprietor and partners must report business income on their personal tax return
Which of the following is not a characteristics of corporation
The shares of the corporation must be held by more than one party
What is a limited partnership
General and limited partners have the same income tax
Cost principal
Record the amount for an asset what you PAID FOR
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Revenue recognization principle
Revenue should be recognized put into the books when EARNED not necessarily one received
COMMISSION
Matching Principal
Expenses should be recognized and deducted in the same period as a revenue they generate. Recognize one INCURRED and not necessarily when paid
Objective
Objective- receipts
Consistency
Keep every consistent
Materially
Is the exception to the matching principle.
The practice of recognizing expense as they are incurred rather than when they’re paid for is
Matching
Which of the following is the generally excepted accounting principles which holds that all accounting information should be reported on objective determine with verbal
Objectively
The subject clause have just removed from the contract of purchase and sale but the sale is not paying for another 17 days. Sandi the sales person is already record the commission from the sale as income. Which of the journal excepted accounting principles was she following
Recognize
Which one of the following is inconsistent with generally excepted accounting principles
Assets are recorded at fair market value when they are acquired
How weird prepaid expense and income tax pay will be classified on the balance sheet
Prepaid expense current asset income tax payable current liabilities
