12 Questions
In an Limited Liability Partnership (LLP), each partner is liable for partnership debts only to the extent of:
Their investment in the partnership plus their share of the liabilities
Which type of accounting records revenue when it is earned, regardless of when payment is received?
Accrual accounting
What type of entry is a record of an event that has a financial impact on the business and can be reliably measured?
Journal entry
What would the purchase of office equipment for cash do to both an asset and a liability account?
Increase in both asset and liability accounts
Under the adjusting principle, when should a business record revenue?
When it is earned, regardless of payment timing
Are liabilities and revenues increased by debits or credits?
Debits
Which financial statement provides information about a company’s financial position at a specific point in time?
Balance Sheet
What does the term 'retained earnings' represent in accounting?
Net income retained in the business
In a Limited Liability Partnership (LLP), what is the extent of each partner's liability for partnership debts?
Limited to their investment in the partnership
Which account is not included in the business records of a proprietorship?
Retained Earnings
In accounting, which of the following is decreased by credits?
Owners' Equity
What principle dictates recording revenue when it is earned, regardless of payment timing?
Revenue Recognition Principle
Test your knowledge of financial accounting concepts with this quiz. Questions cover topics such as budgeting information, balance sheets, retained earnings, and business structures like proprietorships and Limited Liability Partnerships (LLPs). Choose the correct True or False answers!
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