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When an asset and liability decrease at the same time for the same amount
One of these is not an expense.
Which one is not a characteristic of income?
Profit results when
A company wins a car at a raffle. What are the initial effects on the elements of financial statements?
Salaries of certain employees have been unclaimed for several years. When it was finally determined that the concerned employees are not coming back to claim the amounts, management decided to recognize these as income because
Assets are best described as
When a company obtains a loan from the bank, what elements are affected and how are they affected?
Which one is not a characteristic of expense?
Broad classes of events and transactions based on their economic characteristics are called:
When a company pays its bank loan, what elements are affected and how are they affected?
Which one is not descriptive of a liability?
The two most important aspects of a reporting entity that primary users are interested in are:
Merchandise kept in the warehouse where destroyed by flood. What is the effect on which elements?
Fire destroyed the company’s factory, which had no insurance coverage. What is the effect?
A liability is an obligation requiring future sacrifice of benefits. What is meant by this statement?
A company paid off accounts payable to a supplier. What is the effect on which elements?
A raffle coupon for a car was filled out in the name of the company. The company won the car. What elements of financial statements are involved?
Which one is most likely to increase net assets?
Elements of financial statements directly related to financial position.
Another name for net assets?
Elements of financial statements directly related to performance.
When an asset loses its value and potential future benefits, it
Income and expense are determinants of performance.
Not all costs are assets because some costs are__________?
Financial statements present information separately for financial position and performance.
Which of the following will increase if liability is converted to equity?
A reporting entity prepares _________ to report financial position and performance.
An asset arises from a past event. What was this past event?
An asset is
This represents the residual interest in the entity.
An example of a liability.
These elements summarize information about the efficient and effective use of resources.
An example of an asset.
One of these is not income.
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