Question

1. Which of the following terms is used when assuming a business will continue to operate...

1. Which of the following terms is used when assuming a business will continue to operate in the foreseeable future?

Group of answer choices

a. going concern assumption

b. separate entity concept

c.monetary measurement concept

d. time period assumption

2. What is the impact on the accounting equation when an accounts receivable is collected?

Group of answer choices

a.the total of neither side changes

b. both sides increase

c. both sides decrease

d. only the Asset side changes

3. Which of these accounts is a liability?

Group of answer choices

a. Accounts Payable

b. Accounts Receivable

c. Supplies

d. Salaries Expense

4. Which of the following principles matches expenses with associated revenues in the period in which the revenues were generated?

Group of answer choices

a. expense recognition (matching) principle

b.revenue recognition principle

c. cost principle

d.full disclosure principle

Business   Accounting   
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Homework Answers

Answer #1

ANSWER:

1. (a) Going Concern Assumption

Going concern principle is where we assume that the business will continue to operate in the foreseeable future.

2. (a) the total of neither side changes

By the collection of accounts receivable, the cash in the assets colum increases and the same amount will get reduced in the accounts receivable ledger. Hence, there won't be any chnage in the totals of either assets and liabilities.

3. (a) Accounts Payable

Accounts payable is the account of payables which we are liable to pay to the suppliers.

4. (a) Expense Recognition (Matching) Principle

Mactching principle is the concept where it records the expenses incurred during the period in which related revenues are earned.

Thankyou.

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