Podcast
Questions and Answers
What is the function of classification in accounting?
What is the function of classification in accounting?
- To analyze and interpret financial data
- To systematically group transactions of one nature (correct)
- To communicate accounting information properly
- To prepare financial statements
What is the purpose of summarizing in accounting?
What is the purpose of summarizing in accounting?
- To analyze and interpret financial data
- To group transactions of one nature together
- To prepare financial statements (correct)
- To communicate accounting information properly
In accounting, what is the end-function of interpreting financial data?
In accounting, what is the end-function of interpreting financial data?
- To systematically analyze and interpret financial data (correct)
- To prepare financial statements
- To group transactions of one nature together
- To communicate accounting information properly
How does communicating fit into the functions of accounting?
How does communicating fit into the functions of accounting?
What is Mr. Juan's main business after his retirement?
What is Mr. Juan's main business after his retirement?
Who is in charge of both baking and sales at Mr. Juan's bakery shop?
Who is in charge of both baking and sales at Mr. Juan's bakery shop?
What is the purpose of an account title in accounting?
What is the purpose of an account title in accounting?
Which of the following is NOT a type of account in the Statement of Financial Position or Balance Sheet?
Which of the following is NOT a type of account in the Statement of Financial Position or Balance Sheet?
What is the essential characteristic of an asset?
What is the essential characteristic of an asset?
Which of the following is NOT a classification of current assets?
Which of the following is NOT a classification of current assets?
What is the time period for an asset to be considered a current asset?
What is the time period for an asset to be considered a current asset?
Which of the following statements about assets is correct?
Which of the following statements about assets is correct?
What is the purpose of purchasing inventories in a business?
What is the purpose of purchasing inventories in a business?
What does Notes Receivable represent in accounting?
What does Notes Receivable represent in accounting?
What do Contra-Assets Accounts like Allowance for Doubtful Accounts represent?
What do Contra-Assets Accounts like Allowance for Doubtful Accounts represent?
What is the purpose of Advances to Employees in accounting?
What is the purpose of Advances to Employees in accounting?
What should NOT be included as part of a company's expenses?
What should NOT be included as part of a company's expenses?
What do Prepaid Expenses in accounting signify?
What do Prepaid Expenses in accounting signify?
What is the basic time period for preparing accounting reports?
What is the basic time period for preparing accounting reports?
What category does Accrued Income belong to in accounting terms?
What category does Accrued Income belong to in accounting terms?
Which of the following is NOT an example of a fiscal year?
Which of the following is NOT an example of a fiscal year?
What principle assumes that a business enterprise will continue to operate indefinitely?
What principle assumes that a business enterprise will continue to operate indefinitely?
According to the Monetary Unit Principle, what should a company report its financial statements in?
According to the Monetary Unit Principle, what should a company report its financial statements in?
Which of the following is an example of a calendar year?
Which of the following is an example of a calendar year?
What is the second step in examining a business transaction?
What is the second step in examining a business transaction?
In journalizing a transaction, what does the 'Ref.' column in the general journal represent?
In journalizing a transaction, what does the 'Ref.' column in the general journal represent?
What does a complete journal entry consist of?
What does a complete journal entry consist of?
In journalizing, where is the credit account title typically entered?
In journalizing, where is the credit account title typically entered?
What role does a brief explanation play in a journal entry?
What role does a brief explanation play in a journal entry?
What purpose does leaving a space between journal entries serve?
What purpose does leaving a space between journal entries serve?
