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Fabm2 (Answers)

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35 views

Fabm2 (Answers)

Uploaded by

Allison Fynax
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Income statement is another term for the Statement of Financial Position

- False

Credits always reduce account balances.

- False

Cash, Accounts receivable and Office supplies are examples of current assets.

- True

A Statement of Financial Position is a formal statement presenting the three accounting


elements which are?

- assets, liabilities and equity

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a
specific date is the __________.

- Statement of Financial Position

A debit account in excess of credits would possess a credit balance.

- True

Management accounting is also referred to as General Information Financial Accounting.

- False

An asset is a present obligation arising out of past events.

- False

Net loss indicates that the business is doing well.

- False

Cash, building, and office supplies are examples of assets.

- True

Merchandising business usually does activities that converts raw materials into finished
products, and sells this to other firms or to individuals.

- False

Expense is one of the elements of the Statement of Financial Position.

- False

Manufacturing business converts raw materials to finished goods.


- True

Withdrawals decrease equity.

- True

The cost accountant handles Management Accounting.

- False

It refers to total or gross sales less any sales discounts, and sales returns and allowances.

- Net Sales

This concept states that the activities of a business are recorded separately from the activities of
the stakeholders.

-reliability or objectivity principle

Accounting is the system of measuring business activities of financial character.

- True

Withdrawals are also known as "drawings".

- True

Accounting is just all about recording.

- False

Which of the following names is NOT associated with the income statement?

- Statement of Financial Position

Long-term liabilities are noncurrent.

- True

Land is a current asset..

- True

Single proprietorship is concerned with the manufacture of goods into finished product.

- False

Increases in the assets are recorded on the right side of the account.

- False

Entity principle separate business from personal transactions.


- True

Noncurrent assets are assets that are expected to be used within 12 months.

- False

AICPA means

- American Institute of Certified Public Accountants

Going-concern is a concept where accountants assume that the business will continue to
operate for a foreseeable future.

- True

Transactions which are financial in nature, such as payment and purchases in cash.

- Financial Character

The owner invests trucksto be used in the business.

- Asset Increase, Equity Increase

The Calendar year ends on January 01.

- True

Manufacturing business converts raw materials to finished goods.

- True

Losses from trading investments of a law firm are not considered expenses.

- True

The Statement of Financial Position is commonly prepared at the year ended December 31..

- False

The business provided service to customers on account.

- Asset Increase, Equity Increase

Cash and cash equivalents are noncurrent assets..

- True

This is the type of business which offers services for a fee

- Service business

What is the effect on Single Lady's accounting equation when it pays the account to the supplier
P22,500? And which accounts are affected?
- Asset Decrease, Liability Decrease

The law that manages Corporations

- Corporate Code

Examples of real accounts are revenues, expenses, and drawing accounts.

- False

Account form is more commonly used form of an SFP.

- True

Salaries are considered income to the business.

- False

It is the difference between net sales and the cost of goods sold.

- Gross profit

Rent Expense, Wages Expense and Utilities Expense are nominal accounts.

- True

Accounting is based on the single-entry bookkeeping.

- False

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