Fraud
TAYLOR’S COLLEGE
AMERICAN DEGREE PROGRAM
FALL 2012 SEMESTER
ACCT 201 – TEST 1
QUESTION 1 (10 marks)
Identify by letter the assumption or characteristic of information that best represents the situation given. (One mark for each matching)
A. Corporate governance F. Liabilities
B. Going concern concept G. Financial Accounting Information. C. Reliability (Objectivity) Principle H. Generally accepted accounting principles D. Stable-dollar assumption I. Realization principle
E. Accrued basis accounting J. Matching principles
____1. Future payment the business owes to creditors.
____2. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue.
____3. Overseeing a company's affairs to ensure that the company is managed with the best interest of shareholders in mind.
____4. The approach to preparing financial statements based on recognizing revenues when they are earned or expense when incurred even though payment has not be received or made. .
____5. The principle that determines when revenue should be recorded once services are rendered to customers or goods are sold or delivered to customers.
____6. An assumption by accountants that the monetary unit used in the preparation of financial statements is stable over time.
____7. The accounting guideline that requires financial statement information to be supported by evidence(s) other than someone’s opinion or imagination.
____8. Information designed to benefit of persons outside of the business. organization.
____9. The principle that requires expenses to be reported in the same period as the revenues that were earned to determine income for the period.
____10. The set of standards, assumptions, and concepts that form the "ground rules" for financial reporting in the United
AMERICAN DEGREE PROGRAM
FALL 2012 SEMESTER
ACCT 201 – TEST 1
QUESTION 1 (10 marks)
Identify by letter the assumption or characteristic of information that best represents the situation given. (One mark for each matching)
A. Corporate governance F. Liabilities
B. Going concern concept G. Financial Accounting Information. C. Reliability (Objectivity) Principle H. Generally accepted accounting principles D. Stable-dollar assumption I. Realization principle
E. Accrued basis accounting J. Matching principles
____1. Future payment the business owes to creditors.
____2. The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue.
____3. Overseeing a company's affairs to ensure that the company is managed with the best interest of shareholders in mind.
____4. The approach to preparing financial statements based on recognizing revenues when they are earned or expense when incurred even though payment has not be received or made. .
____5. The principle that determines when revenue should be recorded once services are rendered to customers or goods are sold or delivered to customers.
____6. An assumption by accountants that the monetary unit used in the preparation of financial statements is stable over time.
____7. The accounting guideline that requires financial statement information to be supported by evidence(s) other than someone’s opinion or imagination.
____8. Information designed to benefit of persons outside of the business. organization.
____9. The principle that requires expenses to be reported in the same period as the revenues that were earned to determine income for the period.
____10. The set of standards, assumptions, and concepts that form the "ground rules" for financial reporting in the United