Which of the following is the fundamental accounting equation?

a$)$ Current assets $+$ Current liabilities $=$ Owners' equity

b$)$ Assets $+$ Owners' equity $=$ Liabilities

c$)$ Cash $=$ Debts $+$ Common stock

d$)$ Assets $=$ Liabilities $+$ Owners' equity

On December $31,2014,$ Track Record Inc.$\text{'}$s sales people have firm outstanding orders totaling $$1\mathrm{.}66$ million, which, it has guaranteed its customers, will be fulfilled during the month of January $2015.$

If Track Record includes the $$1\mathrm{.}66$ million in its sales figures for $2014,$ it will be violating the:

a$)$ Materiality concept

b$)$ Historical cost concept

c$)$ Dual$-$aspect concept

d$)$ Realization concept

Which one of the following best describes a balance sheet?

a$)$ A description of the entity's operations over a period of time

b$)$ A snapshot at a point in time of an entity's assets, liabilities and owners' equity

c$)$ A reconciliation of an entity's bank account balance

d$)$ A description of the company's cash flows over a period of time

To be recorded as an asset, an item must meet four specific conditions. Three of them are: it must have been acquired at measurable cost, it must be obtained or controlled by the entity, and it must have been obtained or controlled in a past transaction. Which one of the following is the fourth condition?

a$)$ The item must have a measurable resale value

b$)$ It must be expected to have future economic benefits

c$)$ It must have been fully paid for

d$)$ The entity must have a legal document confirming ownership of the item

Neura Pharma, Inc. has purchased a drug patent with a remaining useful life of $13$ years. How should this new asset be classified?

a$)$ A current tangible asset

b$)$ A non$-$current tangible asset

c$)$ A non$-$current intangible asset

d$)$ A current intangible asset