Introduction To Accounting Final Financial Multiple Choice

Stable Monetary Unit Assumption – accountants assume that the dollar's purchasing power is stable over time
withdrawals – Assets taken out of a business for the owner's personal use.
The amount reported on the income statement related to trading security will be – dividends received this period plus change in market value during the period
Employer owes taxes to the government – Liabilities
Contra Account – an account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account
tax services – Provide help in preparing and filing of tax returns and the rendering of advice on the tax consequences of alternative actions.
Correcting Entry – a journal entry made to correct an error in the ledger
Dividends – Distributions of earnings to the owners
Enforceable – Sanctions must be this. It is insufficient for sanctions merely to exist, without being put into practice. When monitoring reveals that obligations have not been met, sanctions should be enforced as a matter of course, and not as an exception to the rule.
Advantages of purchasing a software package over developing software in-house include all of the following EXCEPT ____.
Loss – the disadvantage that results from losing something
Proprietorship – One owner, no red tape (unless hire employees) Maybe business license. Maybe state sales tax if selling. No separation Of business & personal legal liability. No separate income tax.
The relevant measure of value of the assets of a company that is going out of business is the: – Current market value
account clerks – to record, sort,and file accounting information
An enterprise which sells goods to customers is known as a – C. Retailer
Advаntаges оf purchаsing a sоftware package оver developing software in-house include all of the following EXCEPT ____.
Liability account – accounts payable is a/an
Transaction Analysis – Every transaction affects at least two accounts (dual effect), and the accounting equation MUST remain in balance after each transaction.
expenses – Decrease in retained earnings that results from operations; the cost of doing business; opposite of revenues.
Balance sheet – current assets and liabilities

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