Principles of Financial Accounting

Flashcard maker : Lily Taylor
The withdrawal of cash by the owner will
Decrease owner’s equity
Which of the following is a business event that is considered a recordable transaction?
A customer purchases merchandise
The cost principle relates most closely to the
Valuation issue
All the following items would appear on the blance sheet except
Withdrawals
Which of the following fiancial statements is concerned with the enterprise at a point in time?
Balance sheet
Which of the following events does not result in the recoding of an expense?
Withdrawal of cash by the owner
Wich of the following errors will cause a trial balance to be out of balance?
Placing a debit balance amount into the credit balance column of the ledger
The best definition of assets is the
Resources belonging to a company having a future benefit to the company
The net income figure appears in all the following fiancial statements except the
Balance sheet
Which of the following is legally a separate entity from its owner?
Corporation only
Most business enterprises in the United States are
Sole Proprietorships
Which of the following events does not require a journal entry?
Agreement to perform a service at a future date
Which of the followign gives the correct sequence of account procedures?
Journal, ledger, trial balance, financial statements
Flores Realty company had the following balnce sheet accounts and balances… if $3,000 of Accounts Payable were paid in cash, what would be the total of liabilities and owner’s equity?
$23,000.00
Generially accepted account principles
Are changing continually
Which of the following accounts is not considered an asset?
Accounts Payable
Which of the following is the correct accounting equation?
Assets=Liabilities +Owner’s Equity

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