A partnership: A) Is also called a sole proprietorship. B) Has unlimited liability for its partners. c) Is legally required to have a written agreement. Dj Is a legal organization separate from its owners. E) Has owners called shareholders. Which of the following accounting principles prescribes that a company record its ex- penses incurred to generate the revenue reported? A) Going-concern assumption. B) Expense recognition (Matching) principle. cj Measurement (Cost) principle. D) Business entity assumption. E) Consideration assumption. Net Income: B) Represents the amount of assets stockholders put into a business. c) Equals assets minus liabilities. D) Is the excess of revenues over expenses. E) Represents stockholders' claims against assets. Distributions of cash or other assets by a business to its stockholders are called: A) Dividends. B) Expenses. C) Assets. D) Retained earnings. E) Net Income. A balance sheet lists: A) The types and amounts of the revenues and expenses of a business. B) Only the information about what happened to equity during a time period. c) The types and amounts of assets, liabilities, and equity of a business as of a specific date. D) The inflows and outflows of cash during the period. E) The assets and liabilities of a company but not the stockholders' equity.
A partnership: A) Is also called a sole proprietorship. B) Has unlimited liability for its partners. c) Is legally required to have a written agreement. Dj Is a legal organization separate from its owners. E) Has owners called shareholders. Which of the following accounting principles prescribes that a company record its ex- penses incurred to generate the revenue reported? A) Going-concern assumption. B) Expense recognition (Matching) principle. cj Measurement (Cost) principle. D) Business entity assumption. E) Consideration assumption. Net Income: B) Represents the amount of assets stockholders put into a business. c) Equals assets minus liabilities. D) Is the excess of revenues over expenses. E) Represents stockholders' claims against assets. Distributions of cash or other assets by a business to its stockholders are called: A) Dividends. B) Expenses. C) Assets. D) Retained earnings. E) Net Income. A balance sheet lists: A) The types and amounts of the revenues and expenses of a business. B) Only the information about what happened to equity during a time period. c) The types and amounts of assets, liabilities, and equity of a business as of a specific date. D) The inflows and outflows of cash during the period. E) The assets and liabilities of a company but not the stockholders' equity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A partnership:
A) Is also called a sole proprietorship.
B) Has unlimited liability for its partners.
c) Is legally required to have a written agreement.
Dj Is a legal organization separate from its owners.
E) Has owners called shareholders.
Which of the following accounting principles prescribes that a company record its ex-
penses incurred to generate the revenue reported?
A) Going-concern assumption.
B) Expense recognition (Matching) principle.
cj Measurement (Cost) principle.
D) Business entity assumption.
E) Consideration assumption.
Net Income:
B) Represents the amount of assets stockholders put into a business.
c) Equals assets minus liabilities.
D) Is the excess of revenues over expenses.
E) Represents stockholders' claims against assets.
Distributions of cash or other assets by a business to its stockholders are called:
A) Dividends.
B) Expenses.
C) Assets.
D) Retained earnings.
E) Net Income.
A balance sheet lists:
A) The types and amounts of the revenues and expenses of a business.
B) Only the information about what happened to equity during a time period.
c) The types and amounts of assets, liabilities, and equity of a business as of a specific
date.
D) The inflows and outflows of cash during the period.
E) The assets and liabilities of a company but not the stockholders' equity.
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