Test Online Harvard Answers Essay

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1)Financial accounting is : an information system that tracks and records…

( Money Measurement Concept in accounting, also known as Measurability Concept, means that only transactions and events that are capable of being measured in monetary terms are recognized in the financial statements. - See more at: http://accounting-simplified.com/financial/concepts-and-principles/money-measurement.html#sthash.P90Jyhda.dpuf

Materiality therefore relates to the significance of transactions, balances and …show more content…
Jemison purchases a number of items specifically for the construction of the swing set: lumber, chains, railings and paint. According to the matching concept, when will Jemison Engineering record the cost of those special items as a cost of goods sold expense:

-when the revenue for the swing set is recorded

7) Which of the following financial statements describes an entity's financial position at a point in time?
Top of Form *
Bottom of Form
BaB Balance sheet : at a given point in time BONNE REPONSE

Income statement : a given time periode ending at a specific date

13 ) Select one answer that best fills the blank: Assets minus liabilities equals owner’s equity.

14) Net Income = Revenues minus Expenses

15 )In financial accounting, relevance refers to: the usefulness of the reported information for economic decisions

16 )Which one of the following is the best definition of owners' equity?

Definition: Owners' equity is the total assets of an entity, minus its total liabilities.

17) On June 30, 2015, Martin Co. has assets of $22,000 and owners' equity of $5,000. Its liabilities on that date must total: 17000
Top of Form *
Bottom of Form

(Retained earnings is the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt. It is recorded under shareholders' equity on the balance sheet.
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