Accounting Final Exam Review

91. Accounting information that does not provide measurement bias in favor of a particular set of companies has the characteristic of:
A. Relevance.
B. Consistency.
C. Materiality.
D. Neutrality. – D. Neutrality.
statement of retained earnings – the statement that summarizes the income earned and dividends paid over the life of a business
The normal balance of the Dividends account is a _______ because it decreases _______. – debit stockholders' equity
Depreciation expense – the amount of depreciation taken during the current fiscal year is properly termed
Legal entity – A corporation or other organisation having The capacity to to negotiate contracts; assume financial obligations and pay off debts.
Financing – -Raising cash by issuing stock (equity from stockholders) or borrowing cash (liability to creditor)
Organic compounds always contain _____.
Transaction – Business activity that changes assets, liabilities, or owner's equity
INTERNATIONAL ACCOUNTING STANDARDS BOARD – THE ORGANIZATION THAT DETERMINES HOW ACCOUNTING IS PRACTICED INTERNATIONALLY
Equites – Financial rights in a business's assets are called equites
A company's actual performance should be compared against budgeted amounts for the same accounting period so that:
a. adjustments for future conditions can be included
b. no feedback is possible
c. inefficiencies of the past year can be included
d. a rolling budget can be implemented – a. adjustments for future conditions can be included
Orgаnic cоmpоunds аlwаys cоntain _____.
True or false. Job rotation and mandatory vacations provide additional control since somebody else will be doing the job in the absense and will likely discover any irregularities – TRUE
Revenue – Increase in owners equity resulting from the operation of a business
Sales Tax – A tax on a sale of merchandise or services.
Schedule of Accounts Receivable – A listing of customer accounts, account balances, and total amount due from all customers
the exchange of stock for land would be reportend on the statement of cash flows under – non cash investing and financing activities

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