•
$12,000
•
$6,000
•
$8,000
•
$10,000
Johanna recently took over her father's business. She considered changing
the date when she records and reports the business' financial results. Her
accountant advised her not to do this.
Which accounting principle is the basis of the
accountant's advice?
•
Measurement
•
Full disclosure
•
Time period
•
Matching
CONCEPT
Conceptual
Framework
and
Principles
2
What is the total owner drawings in the statement of
changes in
owner's equity that Cindy drafted for her
cooking store, shown
here?
CONCEPT
Statement
of
Changes
in
Owner's
Equity
3
What is Bill’s ending owner’s equity on a statement of
changes in owner's equity if his records show $8,000 in
investment by owner,
•
Adjusting entry
•
Accrued revenue
•
Supply expense
•
Owner withdrawal
•
Lists the company's liabilities
•
$25,000 in net income, $9,000 in expenses and $4,000 in
owner drawings?
CONCEPT
Preparing Statements of Changes in Owner's Equity
4
As she updates her accounting documents at the end of
the accounting period, what kind of documentation does
Jody need to make if she discovers an unrecorded
receipt for the $275 purchase
of
