Pick correct answers for each of the 10 questions with multiple choices:

In accounting debit means:

Left

Increase

Decrease

Negative

Right

Accrual accounting means that a company will record transactions:

When the revenue is earned

At the end of the month

When they payout cash

When they receive cash

When accounts receivable is reduced

The financial statement that shows the profit or loss of the company based on the difference between revenues and expenses.

Balance Sheet

Statement of Cash Flows

Income Statement

Statement of Retained Earnings

Worksheet

The principle that requires companies to record sales when the revenue is earned rather than when the sale is paid for is:

Materiality

Matching principle

Monetary unit assumption

Going concern principle

Conservatism

Time period assumption

Full disclosure principle

Economic entity assumption

Cost principle

Revenue recognition principle

The principle that requires an item to be recorded at the cost of the item when it was originally purchased is:

Conservatism

Matching principle

Materiality

Monetary unit assumption

Economic entity assumption

Full disclosure principle

Cost principle

Revenue recognition principle

Time period assumption

Going concern principle

The ability to ignore one of the accounting principles is based on:

Monetary unit assumption

Time period assumption

Going concern principle

Economic entity assumption

Matching principle

Materiality

Revenue recognition principle

Conservatism

Full disclosure principle

Cost principle

The principle that requires keeping the information for the company separate from the information of the owner(s) is:

Matching principle

Monetary unit assumption

Materiality

Going concern principle

Cost principle

Conservatism

Economic entity assumption

Revenue recognition principle

Time period assumption

Full disclosure principle

Recording only those transactions that can be expressed in dollars is based on:

Time period assumption

Economic entity assumption

Materiality

Matching principle

Monetary unit assumption

Full disclosure principle

Cost principle

Conservatism

Going concern principle

Revenue recognition principle

The principle that involves the expectation that a company will continue exist for the foreseeable future is:

Economic entity assumption

Time period assumption

Monetary unit assumption

Matching principle

Revenue recognition principle

Going concern principle

Conservatism

Materiality

Full disclosure principle

Cost principle

The accounting equation is

Cash Expenses = Profit

Revenues Expenses =Profit

Revenues + Expenses = Profit

Assets = Liabilities + Owners Equity

Assets + Liabilities = Owners Equity