The idea that a business has a separate existence from its owner or owners is known as the
Going concern concept
entity concept
materiality concept
business concept
Which of the following rely on accounting information to aid in internal decision making?
Managers
Creditors
Investors
All of the foregoing
The financial statement that reports assets, liabilities and owners' equity is the
Income Statement
Cash Flow Statement
Balance Sheet
Bank Reconciliation Statement
Land and Vehicles are best classified as
Intangible assets
Tangible fixed assets
Liabilities
Current Assets
The accounting equation is
Assets + Liabilities = Capital
Assets + Capital = Liabilities
Capital = Liabilites - Assets
Assets = Capital + Liabilities
An unincorporated business with one owner is known as
partnership
sole proprietorship
conglomerate
a limited company
A business cannot enter into transactions with its owners
True
False
The right side of a T-account is known as the credit side
True
False
If the liabilities of a business total $150,000 and owner's equity totals $50,000, then assets must total
$100,000
$200,000
$50,000
$300,000
A net profit occurs when
cost of sales exceed revenue
revenue exceeds total expenses
Revenue exceeds Cost of Sales
Gross Profit is less than expenses