Question

Basic Accounting Questions.

If the Balance Sheet columns do not balance, the error is most likely to exist in the Select one or more a Last six columns of the work sheet Ob First six columns of the work sheet Dc General ledger d. General journal Modifying conventions include all of the following except Select one or more a. Cost-benefit b. Conservatism c Materiality d. Periodicity The concept that requires companies to use the same accounting practices and reporting practices through time Select one or more a Consistency b. Substance over form. c None of the above d. Articulation The business entity concept assumes that each business has an existence separate from all parties except its owners. Select one O True O False Which of the following statements is false regarding the closing process? Select one or more: a. The Income Summary account is closed to the Retained Earnings account b. The closing of expense accounts results in a debit to Income Summary c. The Dividends account is closed to Income Summary d. The closing of revenues results in a credit to Income Summary

Answer 1

1. gf the balance Sheet the error is most the - columns do not balances likely to exist in cuest. Answer: c. D. General ledgey co General Journal. Reason in the reason being that the basis for preparing balance Sheet is journal & ledger. If there is a terror in journal or ledger on both then the balance sheet does not tally. the Modifying following Conuention excepti includes all n Ang wey : d periodicitu d in Bearen : Cost - benefit, conservatismen materiality consistency & Industry pratice are included in modifying ponúple. Modifying prinúple states that there should be flexibility in adopting acounting poinůples

The lonupt that coequivres companies to use Same Quounting pratice $ reporting praties through time is. Answer: (a). Consistency Reason: The consistency porouples States that once the accounting prinúple is adopted it should be insistently followed by the entity in order to provided - inter intra fem comparison 6. The that all business it has parties entity principle assumes existence separate from except owners Answer: False si Reason: The business entity psinuples assunce that it has separate existence from all parties including owners

fase Which of regarding the following statement is dosing process Answer: is closed to The dividend Alc In lame Summary Reason : Dividend Alc earnings by earnings & is closed debiting Crediting to retained retained dividend ole
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