Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 1, Problem 1.26E
Accounting concepts
Match each of the following statements with the appropriate accounting concept. Sonic concepts may he used more than once, while others may not be used at all. Use the notat ions shown to indicate the appropriate accounting concept.
Statements
1. Assume that a business will continue forever.
2. Material litigation involving the corporation is described in a note.
3. Monthly utilities costs are reported as expenses along with the monthly revenues.
4. Personal transactions of owners are kept separate from the business.
5. This concept supports relying on an independent actuary (statistician), rather than the chief operating officer of the coq)ration, to estimate a pension liability.
6. Changes in the use of accounting methods from one period to the next are described in the notes to the financial statements.
7. Land worth $800,000 is reported at its original purchase price of $220,000.
8. This concept justifies recording only transactions that are expressed in dollars.
9. If this concept was ignored, the confidence of users in the financial statements could not be maintained.
10. The changes in financial condition are reported at the end of the month.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper.
1. These are the costs being incurred by the business in generating revenues
a. Assets
b. Expenses
c. Liabilities
d. Owner's Equity
2. An asset account that represents the amount of money owed by the customer to the business is
c. Cash
a. Accounts Payable
b. Accounts Receivable d. Inventories
3. These are present obligations of an entity arising from past transactions or events
c. Liabilities
d. Revenues
4. These are resources controlled by the business as a result of past transactions and events and from
a. Assets
b. Expenses
which future economic benefits are expected to flow to the business
a. Assets
c. Liabilities
d. Revenues
b. Expenses
5. It refers to open account which represent the amount of money owed by the business to creditor or
suppliers
a. Accounts Payable
c. Prepaid Expenses
b. Accounts Receivable
d. Unearned Revenues
6. This represents earnings made by professionals or experts…
Match each concept with the definition that best describes it.
Expense recognition principle (matching
[ Choose]
principle)
[ Choose ]
Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur.
Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash.
The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.
Information that accurately depicts what really happened.
The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue.
An assumption that accountants can divide the economic life of a business into artificial time periods.
Monthly or quarterly accounting time periods.
An accounting period that extends from January 1 to December 31.
Revenue recognition principle
Time period assumption
Calendar year…
Define the branches of accounting of the following:
1.preparation of general purpose financial statement.
Answer:____________
2.evaluation of the performance of a sales department.
Answer:___________
3.develop standards to address a new business set up.
Answer:____________
4.review tax compliance of the business.
Answer:_________
5.evaluate whether a branch of the business complies with the collection and deposit policy of the company.
Answer:_________
6.review whether the financial statement are presented fairly and in compliance with accounting standards.
Answer:_________
7.report on the spending of government funds.
Answer:__________
8.report on the total cost of materials and labor used in the production.
Answer:________
9.conducting lectures on accounting topics.
Answer:___________
Chapter 1 Solutions
Survey of Accounting (Accounting I)
Ch. 1 - Prob. 1SEQCh. 1 - The resources owned by a business are called: A....Ch. 1 - A listing of a business entity’s assets,...Ch. 1 - If total assets are $20,000 and total liabilities...Ch. 1 - Prob. 5SEQCh. 1 - Prob. 1CDQCh. 1 - Prob. 2CDQCh. 1 - Prob. 3CDQCh. 1 - Prob. 4CDQCh. 1 - Prob. 5CDQ
Ch. 1 - Prob. 6CDQCh. 1 - Prob. 7CDQCh. 1 - Prob. 8CDQCh. 1 - Prob. 9CDQCh. 1 - Prob. 10CDQCh. 1 - Briefly describe the nature of the information...Ch. 1 - Prob. 12CDQCh. 1 - What particular item of financial or operating...Ch. 1 - Prob. 14CDQCh. 1 - On October 1, Wok Repair Service extended an offer...Ch. 1 - Prob. 16CDQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - accounting equation The total assets and total...Ch. 1 - accounting equation The total assets and total...Ch. 1 - accounting equation Determine the missing amount...Ch. 1 - accounting equation Determine the missing amounts...Ch. 1 - Net income and dividends The income statement of a...Ch. 1 - Net income and stockholders’ equity for four...Ch. 1 - Accounting equation and Income statement Staples,...Ch. 1 - Prob. 1.10ECh. 1 - Income statement items Based on the data presented...Ch. 1 - Financial statement items Identify each of the...Ch. 1 - Statement of stockholders’ equity Financial...Ch. 1 - Income statement Maynard Services was organized on...Ch. 1 - Prob. 1.15ECh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Prob. 1.19ECh. 1 - Statement of cash flows Looney Inc. was organized...Ch. 1 - Prob. 1.21ECh. 1 - Financial statement items Amazon.com, Inc., (AMZN)...Ch. 1 - Income statement Based on the Amazon.com, Inc.,...Ch. 1 - Financial statement items Though the McDonald’s...Ch. 1 - Financial statements Outlaw Realty, organized...Ch. 1 - Accounting concepts Match each of the following...Ch. 1 - Prob. 1.27ECh. 1 - Income statement, retained earnings statement, and...Ch. 1 - Income statement, retained earnings statement, and...Ch. 1 - Income statement, retained earnings statement, and...Ch. 1 - Prob. 1.2.1PCh. 1 - Missing amounts from financial statements Obj.4...Ch. 1 - Income statement, retained earnings statement, and...Ch. 1 - Income statement, retained earnings statement, and...Ch. 1 - Income statement, retained earnings statement, and...Ch. 1 - Statement of cash flows The following cash data...Ch. 1 - Financial statements, including statement of cash...Ch. 1 - Financial statements, including statement of cash...Ch. 1 - Financial statements, including statement of cash...Ch. 1 - Financial statements, including statement of cash...Ch. 1 - Quantitative metrics Interpublic Group of...Ch. 1 - Prob. 1.1.2MBACh. 1 - Quantitative metrics JetBlue Airways Corporation...Ch. 1 - Prob. 1.2.2MBACh. 1 - Return on assets The financial statements of The...Ch. 1 - Prob. 1.3.2MBACh. 1 - Prob. 1.3.3MBACh. 1 - Prob. 1.3.4MBACh. 1 - Return on assets The financial statements of The...Ch. 1 - Return on assets The financial statements of The...Ch. 1 - Return on assets The financial statements of The...Ch. 1 - Return on assets The following data (in millions)...Ch. 1 - Return on assets The following data (in millions)...Ch. 1 - Return on assets The following data (in millions)...Ch. 1 - Prob. 1.4.4MBACh. 1 - Return on assets The following data (in millions)...Ch. 1 - Return on assets Pfizer Inc. (PFE) discovers,...Ch. 1 - Return on assets Pfizer Inc. (PFE) discovers,...Ch. 1 - Prob. 1.5.3MBACh. 1 - Prob. 1.6.1MBACh. 1 - Return on assets ExxonMobil Corporation (XOM)...Ch. 1 - Return on assets ExxonMobil Corporation (XOM)...Ch. 1 - Return on assets Tiffany & Co. (TIF) designs and...Ch. 1 - Return on assets Tiffany & Co. (TIF) designs and...Ch. 1 - Prob. 1.1CCh. 1 - Ethics and professional conduct in business...Ch. 1 - Prob. 1.2.2CCh. 1 - How businesses make money Assume that you are the...Ch. 1 - How businesses make money Assume that you are the...Ch. 1 - How businesses make money Assume that you are the...Ch. 1 - Prob. 1.4CCh. 1 - The accounting equation Review financial...Ch. 1 - Prob. 1.6C
Additional Business Textbook Solutions
Find more solutions based on key concepts
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
How would the decision to dispose of a segment of operations using a split-off rather than a spin-off impact th...
Advanced Financial Accounting
This year, Prewer Inc. received a 160,000 dividend on its investment consisting of 16 percent of the outstandin...
Principles Of Taxation For Business And Investment Planning 2020 Edition
(a) Standard costs are the expected total cost of completing a job. Is this correct? Explain, (b) A standard im...
Managerial Accounting: Tools for Business Decision Making
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (5th Edition)
Disposal of assets. Answer the following questions. 1. A company has an inventory of 1,300 assorted parts for a...
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- True or False for the following statements: 1. Accounting can be defined as an information system that provides reports to users about the economic activities and condition of a business. 2. An account receivable is typically classified as a revenue, not an asset. 3. The allowance for doubtful accounts is an estimate based on past experience of the corporation. 4. Using FIFO method to calculate inventory can decrease tax payment. 5. The accounting equation can be expressed as Assets - Liabilities = Owner's Equity 6. If the liabilities owed by a business total S300,000 and owners equity is equal to $300,000, then the assets also total $300,000. 7. An account receivable is a claim against a customer arising from a sale on account. 8. The unit of measure concept requires that economic data be recorded in a common unit of measurement like RMB and U.S. dollar. 9. Paying off an account payable increases liabilities. 10. The normal balance of cash account is a debit.arrow_forwardAccounting provides information on Select one: O a. All of the answers are correct O b. Financial conditions of an institution O c. Company's tax liability for a particular year O d. Cost and income for managersarrow_forwardAccounting principles that assumes the entity will continue to operate indefinitely and financial statements are prepared on the basis that the business will continue for the foreseeable future are: Select one: A. going concern B. separate entity C. accrual basis D. historical concepts What is the meaning of accounts? Select one: A. The details of business transactions are supported by source documents B. are withdrawals and expenses that are deducted from owner’s equity C. An error that was made in carrying the account balance to the trial balance D. the basic storage units for accounting data Bookkeeping: Select one: A. consist of the interconnected business subsystems. B. a business unit chartered by the state and legally separate from its owners C. including accounting, that provide the information needed to run a business. D. is the process of recording financial transactions and keeping financial records. It is mechanical and repetitive and is usually…arrow_forward
- . A list of concepts is provided below in the left column, with descriptions of the concepts in the right column. There are more descriptions provided than concepts. Match the description to the concept. ________ Cash-basis accounting. ______ Fiscal year. _______ Revenue recognition principle. _______ Expense recognition principle. (a) Monthly and quarterly time periods. (b) Accountants divide the economic life of a business into artificial time periods. (c) Efforts (expenses) should be recognized in the period in which a company consumes assets or incurs liabilities to generate accomplishments (revenues). (d) An accounting time period that starts on January 1 and ends on December 31. (e) An accounting time period that is one year in length. (f) Companies record revenues when they receive cash and record expenses when they pay out cash. (g) Companies record transactions in the period in which the events occur. (h) Recognize revenue in the accounting period in which a performance…arrow_forward1.Assets = Liabilities + (Owner, Capital - Owner, Withdrawal + Revenues - Expenses)2. What is a company's financial obligation that results in the company’s future sacrifices of economic benefits to other entities or businesses?3. What is considered as the residual claims on assets?4. What do you call the chronological record of all the financial transactions of a business which is also known as the book of original entry?5. TRUE or FALSE? Debit means increases while credit means decreases.6. What accounting principle dictates that companies recognize revenue as it is earned, and not when they receive payment?7. Which of the four accounts is NOT a liability? Unearned revenue; Accrued expense; Accounts payable; Accounts receivable8. The following accounts must be closed at the of the accounting period, EXCEPT: Equity, revenue, expense, income summary9. What inventory system continuously estimates the inventory based on the running electronic…arrow_forwardFill in the blanks for the missing elements in the following three statements: Corporation _____________ transactions are tracked in two different accounts; ________________accounts track owner contributions separately from earnings. Earnings and earning distributions are tracked in the __________________________ account.arrow_forward
- Give typing answer with explanation and conclusion 1. ________ are items owed to a creditor. ________ are items owned by a company. ________ represents owners' claims to company resources. Expenses; Revenues; Net income Expenses; Revenues; Stockholders��� equity Liabilities; Assets; Stockholders' equity Liabilities; Assets; Net incomearrow_forwarda. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business? c. Compare general and administrative expenses to similar companies. Are they reasonable? d. What is the ratio of net interest income (expense) to income from operations? Is this a safe ratio for the company? Why or why not?arrow_forwardACCOUNTING MULTIPLE CHOICE QUESTIONS. ANSWER ALL IF POSSIBLE An account balance is: A. The total of the credit side of the account B. The total of the debit side of the account C. The difference between the total debits and total credits for an account including the beginning balance D. Always a credit Show Transcribed Text O Businesses can take any of the following forms of business ownership except: A. Sole proprietorship C. Joint Offering B. Partnership D. Corporation FOB shipping point means that the A. goods are placed free on board to the buyer's place of business. B. buyer pays the freight. Show Transcribed Text 3 C. seller pays the freight. D. common carrier pays the freight. C Show Transcribed Text Income from operations is A. Net sales less Cost of goods sold. B. Net sales less Operating expenses. C. Gross profit less Other expenses and losses. D. Gross profit less Operating expenses. When completing a bank reconciliation, what action should you take regarding "Outstanding…arrow_forward
- Answer the following question1) Explain the purpose of GAAP (Generally Accepted Accounting Principles), including the organization currently responsible for the creation and governance of these standards?2) How are assets and liabilities classified as either current or long term? Explain with example. 3) If a business had a net loss for the year, what would be the closing entry to close income summary and transfer the net loss to the capital account? Explain with example.4) The statement of changes in financial position was designed to enable financial statement users to answer questions like these:a) Where did the profit go?b) What do you mean by dividend? Explainc) How was it possible to distribute dividends in the presence of a loss?arrow_forward1-Accounting software is related to which system of accounting? a. Manual Individual customer records b. Manual system of accounting c. Computerized accounting d. Any system of accounting 2-A Creditor of the business uses the financial statement for a. Day to day decision making related to the business b. Making the decisions to buy or sell the shares c. Evaluating the risks of granting credit or lending money d. Verifying whether the company complies with tax laws 3-For every debit there will be an equal credit according to a. Dual aspect concept b. Matching concept c. Money measurement concept d. Cost concept 4-Mr. Asif is an accountant. Purchase of Merchandise on credit for OMR 75000 was entered in Furniture Account for OMR 75000 but he posted Accounts payable entry is correct. Which of the following rectification entry is correct? a. Debit Accounts payable RO 75000 Credit Furniture RO 75000 b. Debit Purchase RO 75000 Credit Accounts payable account RO…arrow_forwardA. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. B. Calculate net income for the period. C. How much has been earned by the company’s operations but not distributed to shareholders? D. What is the total investment by shareholders? E. How much do customers owe the company?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
ACCOUNTING BASICS: Debits and Credits Explained; Author: Accounting Stuff;https://www.youtube.com/watch?v=VhwZ9t2b3Zk;License: Standard Youtube License