Accounting Quiz

If equity equals $300,000 and liabilities are $192,000, then assets=?

$492,000

If equity is $300,000 and liabilities are $192,000 in assets are__________?

$492,000

The accounting principle that requires accounting information to be based on actual costs and requires assets and services to be recorded initially at the cash or cash equivilant amount given in exchange

Cost principle

IASB hopes to...

Create harmony among accounting practices of different countries

Creditors' claims on the assets of the company are called...

Equity

These help to prevent conflicts of interest, are believes that separate right from wrong, are critical in accounting, often coincide with law

Ethics

Ethical behavior require that auditors' pay...

Not depend on the figures in the client's reports

Income statement

The financial statement that reports whether the business earn a profit and also list the types of and amounts of the revenues and expenses

Revenue recognition principle

The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the influence assets associated with revenue to be in the form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of anynon-cash assets received from customer in exchange for goods or services

Revenue is properly recognized at...

Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price