The principles, which constitute the ground rules for financial reporting, are termed as generally accepted accounting principles. To qualify as generally accepted, an accounting principle:
P1

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Other
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1st - 12th Grade
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Easy

Arbie redona
Used 2+ times
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
must guide corporate managers in the preparation of financial statements which should be understood by widely scattered stockholders.
must guide corporate managers in the preparation of financial statements which will be used in making collective bargaining agreements with trade unions.
must guide entrepreneurs in the choice of investments.
must receive substantial authoritative support from the public and the members of the profession.
2.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
In accounting, those standards and practices that have won acceptance because of their logic and proven usefulness are referred to as:
accounting dogmas
accounting principles
accounting procedures
accounting theories
3.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
Financial statements that are expressed assuming a stable monetary unit are:
general price-level financial statements.
historical peso financial statements.
current value financial statements.
air-value financial statements.
4.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
As compared with other valuation alternatives that are used in the preparation of general-purpose financial statements, historical cost is more:
objective.
relevant.
indicative of the entity’s purchasing power.
conservative.
5.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
The cash or operating cycle refers to:
the length of time that elapses between an outlay of cash for resources and the receipt of cash from the sale of goods or services
the length of time that elapses between the time an item is purchased and payment is made
the length of time it takes to collect receivables from customers who have been extended special credit terms
none
6.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
The cash balance your company reports should be increased if in doing the bank reconciliation discover:
a note receivable has been collected for you by the bank
not all of the checks written this period have yet cleared the bank
a check from one of your customers has been returned for insufficiency of funds
a deposit in transit included in your bank reconciliation last period is shown by the bank as received at the beginning of this period
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Patsy Corp. has estimated its activity for December 2008. Selected data from these estimated amounts are as follows:
Sales P350,000
Gross profit (based on sales) 30%
Increase in trade accounts receivable P 10,500
Change in accounts payable P 0
Increase in inventory P 5,000
Variable selling, general and administrative expenses includes a charge for uncollectible accounts of 1% of sales. Accounts written off were P3,000.
On the basis of the above data, what is the cash inflow from operating activities for December?
P336,500
P339,500
P346,500
P350,000
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