review accounting

type of business organization is created by a contractual agreement between two or more individuals.

• corporation

• cooperative

• partnership

• sole proprietorship

branch of accounting deals with the preparation of general purpose financial statements

• general accounting

• management accounting

• financial accounting

• auditing

treating a business and its owner as one and the same violates which of the following principles

• verifiability

• separate entity

• materiality

• going concern

this concept requires the preparation of financial statements atleast annually

• reporting period

• accrual basis

• materiality

• separate entity

information has this qualitative characteristics if two different users could reach a general agreement as to what the information intends to represents.

• relevance

• faithful representation

• comparability

• verifiability

information has this qualitative characteristics if it provides a true, correct and complete depiction of what it intends to represent

• relevance

• faithful representation

• comparability

• understandability

like things are accounted for and presented in like manner , unlike things in dissimilar manner. This statement best exemplifies which of the following concepts?

• matching

• prudence

• consistency

• going concern

under this concept the business assumed to continue exist for an indefinite period of time. This is necessary for accounting measurements to be meaningful

• time period

• historical cost concept

• matching

• going concern

information that can affect the decisions of users has this qualitative characteristics

• relevance

• faithful representation

• verifiability

• understandability

these are the trait that determine whether an item of information is useful to users without them information may deemed useless

• qualitative info

• quantitative info

• materiality

• cost benefit