The petty cash payments record is a special journal that takes ...

[vicotolentino]

The petty cash payments record is a special journal that takes the place of entering these transactions in the two-column journal.
 a. True
   b. False
   Indicate whether the statement is true or false

Question 2

From the list of concepts, principles, and assumptions, choose the letter which best matches each item below. Use each term only once.
 
  a. Accrual accounting g. Materiality
  b. Consistency h. Monetary-unit assumption
  c. Comparability i. Relevance
  d. Going-concern assumption j. Reliability
  e. Historical-cost principle k. Revenue-recognition principle
  f. Matching principle l. Separate-entity assumption
 
  1. Items purchased for less than 25 are expensed even though they will last longer than a year.
  2. Land is valued on the balance sheet at the amount paid for it even though it is worth more.
  3. Revenues are recorded when the goods are delivered even if the cash was not collected.
  4. Supplies are expensed in the period they are used to help generate revenue.
  5. Cost of goods sold is presented in dollars, not units, on the income statement.
  6. The same methods of measuring items on the financials should be used from period to period.
  7. Assumes companies are going to stay in business indefinitely.
  8. The owner's personal expenses should not be included in the company's records.
  9. Accounting information is provided in a timely fashion so that the information is still useful.
  10. Revenues are recorded when earned and expenses are recorded when incurred regardless of when the related cash changes hands.
  11. The items on the financial statements should be accurate and truthful.
  12. Comparing financial statements of different companies is more meaningful when the statements are prepared in accordance with GAAP.

[aruss1303]

Answer to Question 1

False

Answer to Question 2

1. g, 2. e, 3. k, 4. f, 5. h, 6. b, 7. d, 8. l, 9. i, 10. a, 11. j, 12. c

[vicotolentino]

Correct answers!

[aruss1303]

Great! Please up vote