The cost and fair market value of an asset are the same at the time of acquisition and in all subsequent periods. Even though a partnership is not a separate legal entity, for accounting purposes the partnership affairs should be kept separate from the personal activities of the owners.
identifying economic transactions that are relevant to the business. communicatingfinancial information to users by preparing financial reports.
The accounting process involves all of the following except a.
The accounting process is correctly sequenced as a.
ACC/206 Accounting principles II Week 1 – 11 Complete Solution – Strayer – A+ Graded Click on the Link Below to Purchase Complete Exam and Quizzes (Chapter 1 – 26) All Possible Questions With Answers Instant Download more help Contact us at: [email protected] 1 ACCOUNTINGIN ACTION CHAPTERSTUDY OBJECTIVES 1.
Owners of business firms are the only people who need accounting information. Transactions that can be measured in dollars and cents are recorded in the financial information system. The hiring of a new company president is an economic event recorded by the financial information system. Management of a business enterprise is the major external user of information. Accounting communicates financial information about a business enterprise to both internal and external users. Accounting information is used only by external users with a financial interest in a business enterprise. Financial statements are the major means of communicating accounting information to interested parties. Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process. The origins of accounting are attributed to Luca Pacioli, a famous mathematician. The study of accounting will be useful only if a student is interested in working for a profit-oriented business firm. Private accountants are accountants who are not employees of business enterprises. The study of accounting is not useful for a business career unless your career objective is to become an accountant. A working knowledge of accounting is not relevant to a lawyer or an architect. Expressing an opinion as to the fairness of the information presented in financial statements is a service performed by CPAs. Accountants rely on a fundamental business concept—ethical behavior—in reporting financial information. The primary accounting standard-setting body in the United States is the International Accounting Standards Board. The Financial Accounting Standards Board is a part of the Securities and Exchange Commission.
Understand why ethics is a fundamental business concept. Explain generally accepted accounting principles and the cost principle. Explain the monetary unit assumption and the economic entity assumption. State the accounting equation, and define assets, liabilities, and owner’s equity. Analyze the effects of business transactions on the accounting equation. Understand the four financial statements and how they are prepared. Explain the career opportunities in TRUE-FALSESTATEMENTS 1. financial markets and accounting standard-setting bodies. more people have been hired to record business transactions. business events are recorded only at the end of the year. Communicationof economic events is the part of the accounting process that involves a. Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction? The appointment of a new CPA firm to perform an audit. The use of computers in recording business events a. does not use the same principles as manual accounting systems. has greatly impacted the identification stage of the accounting process.