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Ch01 - The role of accounting in business - final đã chuyển đổi
Ch01 - The role of accounting in business - final đã chuyển đổi
a entity concept
b cost principle
c matching
principle
d going
concern
2/14/2022 201107 - The role of accounting in business 14
concept (SAI)
Quick Check
3. The accounting principle that states recording expenses and
revenues in the same period in which they occur:
a/ Historical cost
b/ Matching
c/ Revenue
recognition
d/ Going-
concern
2/14/2022 201107 - The role of accounting in business 15
Quick Check
4. Accounting is the information system that:
b customers
c creditors
investors
b/ Matching Principle
c/ Accounting Period Principle
a/ Historical cost
b/ Matching
c/ Profit
recognition
d/ Going-
concern
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1.8. The accounting equation
It measures the resources of a business and the claims to those
resources
• Drawings (Dividend)
• Income => equity (+)
• Revenue => equity (+)
• Expenses => equity (-)
(Revenue/ Income – Expenses = Profit/ Loss)
b. $363 million
c. $135 million
d. $228 million
2/14/2022 201107 - The role of accounting in business 32
Quick Check
9. Assume that Fossil sold watches at a profit of $48 000 to a
department store on credit. How would this transaction affect
Fossil's accounting equation?
a profit of $39,000
b loss of $39,000
c profit of $64,000
d loss of $64,000
D no effect
2/14/2022 201107 - The role of accounting in business 35
Quick Check
12. The accounting equation can be written as:
a) Assets - Liabilities = Owner’s equity
b) Assets + Liabilities = Owner’s equity
c) Liabilities = Owner’s equity – Asset
d) Liabilities – Assets = Owner’s equity
Assets Liabilities
Cash $19 900 Accounts payable $200
Accounts Receivable 2 000
Office supplies 500 Owners’equity
Land 11 000 Sheena Bright, capital 33 200