T or F unit one

Question 1

(T/F)
Accounting is the language of business

Answer 1

True

Question 2

(T/F)
A creditor would favor a positive net worth

Answer 2

True

Question 3

(T/F)

The principles of right and wrong that guide an individual in making personal decisions is called business ethics

Answer 3

True

Question 4

(T/F)

Keeping personal and business records separate is an application of the business entity concept

Answer 4

True

Question 5

(T/F)

Generally accepted accounting principles, GAAP allows for flexibility in reporting

Answer 5

false

Question 6

(T/F)

Recording business costs in terms of hours required to complete projects is an application of the unit of measurement concept

Answer 6

False

Question 7

(T/F)

Assets such as cash and supplies have value because they can be used to acquire other assets or be used to operate a business

Answer 7

True

Question 8

(T/F)

The relationship among assets, liabilities, and owner’s equity can be written as an equation

Answer 8

True

Question 9

(T/F)

The accounting equation does not have to be in balance to be correct

Answer 9

False

Question 10

(T/F)

When company pays insurance premiums in advance to an insurer, it records the payment as a liability because the insurer owes future coverage

Answer 10

False

Question 11

(T/F)

When items are bought and paid for later, this referred to as buying on account

Answer 11

Truse

Question 12

(T/F)

The accounting concept Realization of Revenue is applied when revenue is recorded at the time goods or services are sole

Answer 12

True

Question 13

(T/F)

When cash is paid for expenses, the business has more equity

Answer 13

False

Question 14

(T/F)

Question 15

(T/F)

Question 16

(T/F)