Principles, Assets, Liability, And Owners Equity

Question 1

Business enterprises is separate and distinct from its owner or investor

Answer 1

Business entity principle

Question 2

Business is expected to continue indefinitely

Answer 2

Going concern principle

Question 3

Statements to be divided in different time interval

Answer 3

Time period principle

Question 4

Statements to be divided in different time interval

Answer 4

Time period principle

Question 5

Amount stated in single monetary unit

Answer 5

Monetary unit principle

Question 6

Amount stated in single monetary unit

Answer 6

Monetary unit principle

Question 7

Financial statement should be reported with evidences

Answer 7

Objectivity principle

Question 8

Account should be recorded initially at cost

Answer 8

Cost principle

Question 9

Revenues and expenses should be recorded in the same period

Answer 9

Accrual accounting principle

Question 10

Cost should be matched with revenue generated

Answer 10

Matching principle

Question 11

All relevant and material information should be reported

Answer 11

Disclosure principle

Question 12

Assets and income should not be overstated malleability as an expenses should not be understated

Answer 12

Conservatism principle

Question 13

Assets to make a immaterial to make a difference in the financial statement the company should recorded as an expense

Answer 13

Materiality principle

Question 14

Assets to make a immaterial to make a difference in the financial statement the company should recorded as an expense

Answer 14

Materiality principle

Question 15

Resources controlled by the entity also known as what the business owns

Answer 15

Assets

Question 16

Enumerate the examples and current assets

Answer 16

Cash
Accounts receivable
Notes receivable
Supplies
Inventories
Accrued income
Prepaid expenses

Question 17

It is the liquid assets

Answer 17

Cash

Question 18

Due from a customer as a result of sale of goods

Answer 18

Accounts receivable

Question 19

Items held for resale because they are readily available

Answer 19

Inventories

Question 20

Being advanced to pay in a year

Answer 20

Prepaid expense

Question 21

Enumerate non current assets

Answer 21

Plant land equipment
Long term investment
Intangible asset without physical substance

Question 22

Obligation of the entity also known as what the business owes

Answer 22

Liabilities

Question 23

A person or companies to whom a business owes something

Answer 23

Creditors

Question 24

Liabilities that should be paid and realized within a year or after a year

Answer 24

Current liabilities

Question 25

Enumerate current liabilities

Answer 25

Notes payable
Account payable
Accrued expense
Unearned income

Question 26

Account due to supplier to be paid for the purchase of goods and services

Answer 26

Accounts payable

Question 27

Amount due with supporting promissory notes with short term mode of payment

Answer 27

Notes payable

Question 28

Expense incurred but not yet paid

Answer 28

Accrued expense

Question 29

Cash being paid in advanced by customer free future delivery

Answer 29

Unearned income

Question 30

Liabilities that are to be paid for more than a year from your end

Answer 30

Non-current liabilities

Question 31

Account you due from third parties which was agreed to be paid for longer terms

Answer 31

Loan payable

Question 32

Long term debt for the purchase of property or asset

Answer 32

Mortage payable

Question 33

Residual interest in the assets of the enterprise of the deducting all its liabilities

Answer 33

Owner’s equity

Question 34

The investment made by the owner to start up a business in the form of cash

Answer 34

Capital

Question 35

Amount taken by the owner for personal use

Answer 35

Drawing or withdrawal

Question 36

Statement of financial position

Answer 36

Balance sheet

Question 37

Enumerate the five major accounts or five elements of financial statement

Answer 37

Assets liabilities owner’s equity income and expense

Question 38

Money that you make

Answer 38

Income

Question 39

Money that you spend

Answer 39

Expense

Question 40

To determine whether the account is to be debited and credited

Answer 40

Role of debit and credit

Question 41

Record and company
Record outgoing money

Answer 41

Debit
Credit

Question 42

A diagram that represent ledger account

Answer 42

T account