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21 Cards in this Set

  • Front
  • Back
The intentional preparation of misleading financial statement, known as fraudulent financial reporting can result from all the following except
recording a revenue that has been earned but not yet received
which of the following is the most appropriate and modern definition of accounting?
the measurement, processing, and communicaiton of financial information about an identifiable economic entity
a company's ability to attract and hold investment capital ultimately depends on its
profitabilty
which of the following is not a satifactory statement of the account equation
assets = liabilities - stockholders equity
the best definition of assets is the
resources belonging to a company having future benefit to the company
which of the following items has no effect of stockholders equity
land purchased
a liability would not include an obligation to
hire an employee
the authoritative body currently responsible for establishing account practice is the
Financial Accounting Standards Board
Pourpose of an audit is to
ascertain that the financial statements follow GAAP
carring out professional responsibilities with competence and diligence is called
due care
When a business reports revenue before it has bee earned, it has biolated the measurement issure of
recognition
when a business reports an asset at an inflated dollare amount, it has violated the measurement issue of
valuation
when a business erroneously records expenses as assets, it has violated the measurement issue of
classificaiton
the cost principle relates most closely to the
valuation issue
which of the following business events is not a transaciton
signing a contract
which of the following accounts is increased with a debit
dividends
which of the following accounts is increased with a credit
fees earned
which pair of accounts follows the rules of debit and credit in the same manner
prepaid rent and advertising expense
when a company has performed a service but has not yet receive payment, what is the required journal entry to be recorded
accounts receivable - debit
revenue from service - credit
all of the following are examples of source documents except
journals
office supplies become expenses
when they are consumed (used up)