Accountıng I

Yanıt Açıklaması: Balance sheet reports the assets, liabilities, and owner’s equity of the business at a specific date. II is the only corect choice.

Yanıt Açıklaması: Assets are economic resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.

Yanıt Açıklaması: The fair value principle dictates that assets and liabilities should be reported at their fair values. Simply, fair value refers the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, contrary to historical cost principle, the recorded monetary amount of the asset should be revalued at reporting date according to the fair value principle.

Yanıt Açıklaması: All of the given are true about measurement principles. The correct answer is E.

Yanıt Açıklaması: Classified balance sheet reports each asset, liability and owner’s equity in specific sections.

Yanıt Açıklaması: It should be Journalizing according to text

Yanıt Açıklaması: Relevance refers the impact capacity of financial information on the decisions of information users. O wner's equity statement includes four main parts: Opening balance (the amount of owner’s equity at the beginning of the accounting period), net income or loss, transactions with owner(s) and closing balance (the amount of owner’s equity at the end of the accounting period).

Yanıt Açıklaması: Depreciable amount is the cost of an asset, or other amount substituted for cost, less than its residual value. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. Useful life is the estimated lifespan of a plant asset. Accumulated Depreciation is a contra asset account and it will accumulate the depreciation expense during the useful life of depreciable asset.

Yanıt Açıklaması: Accrual basis accounting records the impact of a business transaction as it occurs. When the business performs a service, makes a sale, or incurs an expense, the transaction will be recorded even if the business did not receive or did not pay any cash. In accrual basis accounting, companies record revenues when they are earned and record expenses when they are incurred. Recording regardless of monetary inflows and outflows forms the basis of accrual basis accounting. So, the profitability of the company applying accrual basis accounting can be measured much better when compared with applying the cash basis accounting. The correct answer is C.

Yanıt Açıklaması: Prepaid expenses are asset accounts.

Yanıt Açıklaması: to make effective and efficient decisions

Yanıt Açıklaması: Accounts Receivable. Companies might sell their goods and services on account and receives a promise for future collection of cash. The Accounts Receivable account holds a customer’s promise to pay in the future for services or goods sold on account.

Yanıt Açıklaması: Accounts Payable. The Accounts Payable account is the opposite of Accounts Receivable. A or The company promises to pay a debt in the future. Arises from a credit purchase.

Yanıt Açıklaması: The going concern assumption assumes that the business entity will remain in operation forever. Under the going-concern concept, unless there is evidence to the contrary, accountants assume that the business will remain in operation long enough to use existing assets for their intended purpose.

Yanıt Açıklaması: Accounting is an information system which provides financial information about the entity for decision makers. This system includes three kinds of basic activities which are identifying, recording andcommunicating of the financial transactions of an entity to interested users

Yanıt Açıklaması: 300 x %30= 90 million TL Owners Equity According to the basic accounting assumption; Assets = Liabilities + Owner’s Equity 300 = Liabilities + 90 Liabilities= 210 million

Yanıt Açıklaması: In cash basis accounting, companies record revenues when they receive the cash and they record expenses when the cash is paid. Cash basis accounting records only cash transactions—cash receipts and cash payments. Basically, it is a simple method. But it prevents businesses from being cautious. Companies adopting cash basis accounting focus only transactions involving cash. Those with no monetary input are not taken into consideration. It is possible to say that cash basis accounting is mostly used by small businesses. The correct answer is A.

Yanıt Açıklaması: The correct answer is question E. All items presented in the following items are reported to the assets and resources sections of the balance sheet.

Yanıt Açıklaması: The company will receive assets (for example, cash) in exchange for goods sold and services rendered. Therefore, company’s assets and owner’s equity will increase. The increase in owner’s equity created by delivering goods or services to customers is called revenue. The company uses as many revenue accounts as needed. Examples include Sales Revenue account, Service Revenue account, Interest Revenue account, or Rent Revenue account.

Yanıt Açıklaması: In deferred revenue, revenue is recognized after the cash is received. The correct answer is D.