fin400 mastery - Question 1 The assumption that deals with...

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Question 1 1 out of 1 points The assumption that deals with when to recognize the costs that are associated with the revenue that is being recognized is: Selected Answer: Question 2 1 out of 1 points The accrual basis of accounting recognizes revenue when realized (realization concept) and expenses when incurred (matching concept). Selected Answer: True Question 3 0 out of 1 points The going concern assumption: Selected Answer: Feedback : The going concern assumption provides perspective on the future of the entity and allows the financial statements to be prepared in accordance with GAAP and not at liquidation values. Question 4 0 out of 1 points Valuing inventory at the lower of cost or market is an application of the:
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Selected Answer: Feedback : The accountant must select the measurement with the least favorable effect on net income to apply conservatism Question 5 0 out of 1 points Understating expenses is justified based on: Selected Answer: Feedback : Expenses should never be understated in any circumstance Question 6 1 out of 1 points Relevance and reliability are two primary qualities that make accounting information useful for decision making. Selected Answer: True Question 7 0 out of 1 points The accountant records only the events that affect the financial position of the entity and that can be reasonably determined in monetary terms. Selected Answer: False Feedback : Accountants use money to measure transactions. If a transaction does not involve money, it cannot be measured for accounting purposes
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Question 8 0 out of 1 points The comment that "items that are not material may be recorded in the financial statements in the most economical and expedient manner possible" is representative of: Selected Answer: Feedback : Immaterial items are not subject to the concepts and principles in which accountants are bound Question 9 0 out of 1 points Financial Accounting Concepts establish generally accepted accounting principles. Selected Answer: True Feedback : The concepts are the framework from which GAAP is built but are not a part of GAAP. Question 10
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fin400 mastery - Question 1 The assumption that deals with...

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