Old Midterm Exam Answers

Old Midterm Exam Answers - UNIVERSITY OF CALIFORNIA SAN...

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ANSWERS UNIVERSITY OF CALIFORNIA SAN DIEGO Economics 4 Old Midterm Exam Financial Accounting Prof. Willoughby ANSWERS 1. The basic accounting equation is A = L + Eq: 2. The answer to #1 above reflects the:Duality concept. 3. Accrual accounting DOES NOT measures cash flow, IT MEASURES ACCRUSAL INCOME. 4. The RHS of the Balance sheet lists sources of funds, THE FIRM’S CAPITAL STRUCTURE. 5. Equity holders are also called INVESTORS OR OWNERS Creditors . 6. Some transactions affect only assets or only liabilities or both. T 7. Some transactions have no affect on equity. T 8. Prepaid expenses are Assets. T THEY ARE CURRENT ASSETS 9. Unearned Revenue is a Liability. T IT IS A CURRENT LIABILITY 10. The going concern concept DOES NOT necessitate a known market value for most assets BECAUSE WAT IS IMPORTANT IS THEIR VALUE TO THE FIRM NOT THEIR VALUE IN THE MARKET. 11. Book value reports what an asset COST LESS ANY ACCUMULATED DEPRECIATION OR AMORTIZATION. 12.
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Old Midterm Exam Answers - UNIVERSITY OF CALIFORNIA SAN...

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