Accounting Principles

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold is:

• Going-concern assumption
• Business entity assumption
• Objectivity Principle
• Cost Principle

The accounting concept that requires financial statement information to be supported by independent, unbiased evidence other than someone's opinion is:

• Business entity assumption
• Monetary unit assumption
• Objectivity principle
• Time-period assumption

The accounting principle that requires accounting information to be based on actual cost and requires assets & services to be recorded at the cash amount given in exchange is the:

• Accounting equation
• Cost principle
• Going-concern assumption
• Realization principle

The accounting assumption the requires every business to be accounted for separately from other business entities, including the owners accounts is known as:

• Time-period assumption
• Revenue recognition principle
• Cost principle
• Business entity assumption

Which concept (or principle) would require that data be verifiable, or confirmed by an independent observer?

• Cost principle
• Business Entity Concept
• Reliability concept
• Going-concern assumption

Resources that are expected to yield future benefits are:

• Assets
• Revenues
• Liabilities
• Owner's Equity

The description of the relation b/w a company's assets, liabilities, and equity, stated as Assets = Liabilities + Owner's Equity is known as:

• Income statement equation
• Accounting equation
• Business equation
• Return on equity ratio

All of the following are assets except

• Accounts Receivable
• Buildings
• Supplies expense
• Cash

All of the following are liabilities except:

• Accounts Payable

• Notes Payable

• Salaries Payable

• Revenue Earned

The accounting principle that requires revenue to be recorded when earned is the:

• Matching principle
• Revenue recognition principle
• Time period assumption
• Accrual reporting principle