Accounting I Midterm 2015

criterios de exposición – disclosure criteria
Expectation gap – The difference between the role performed by the auditor and the shareholder's expectations
Financial Accounting – EXTERNAL users. General-Purpose financial statements.
Which of the following should not be included in the physical inventory of a company?
A. Goods held on consignment from another company.
B. Goods shipped on consignment to another company.
C. Goods in transit from another company shipped FOB shipping point.
D. None of these. – A
Earnings Per Share – Net income / number of common shares outstanding
IAS 16 Properly, Plant and Equipment – * RECOGNISED when: it is probable future economic benefits will flow to the business AND the cost of the asset can be measured reliably
* MEASURED initially at cost in the BS. A company can later choose either cost or revaluation method to value asset:
* Cost – shown in BS at cost less depreciation/IL
* Revaluation – shown in BS at revalued amount
* DEPRECIATION – either straight line or diminishing balance
Fiscal year – An accounting period of 12 months
limited liability company – Form of business organization with limited liability and has pass-through tax advantages
cashiers check – a check drawn by a bank on its own funds and signed by an officer of the bank
Select the correct symbol for the element named.sodium
Decreased – an entry on the debit side of the owners equity indicates that the account has been
Notes Receivable – …Is a Debit balance account.
Conceptual Framework for Financial Reporting: First Level: The "——" – The "why" purpose of Accounting


Income statement – Statement that details performance (revenue -expense)
Accrual – Adjust first then cash comes later
Accounting entity – Is the organization for with financial data are to be collected.
Select the cоrrect symbоl fоr the element nаmed.sodium
Which of the following statements correctly describes the reporting of cash?
A. Cash cannot be combined with cash equivalents.
B. Restricted cash funds may be combined with Cash.
C. Cash is listed first in the current assets section.
D. Restricted cash funds cannot be reported as a current asset. – C
Which of the following types effects would NOT be possible when a company records a transaction?
a. increase in an asset and increase in an expense
b. increase in one asset and decrease in another asset
c. increase in an asset and increase in a liability
d. decrease in an asset and increase in an expense
e. Increase in a liability and increase in an expense – a. increase in an asset and increase in an expense
This journal is used to record a purchase on account – Purchase journal
Proprietorship – A business owned by one person is called Proproetorship
Dose money in bank accounts of the individual that is available for payment of bills – Yes

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