WHEN SHOULD AN ACCOUNTANT APPLY THE ARM'S LENGTH PRINCIPLE? A) FOR PERSONAL EXPENSES RECORDING B) ONLY FOR INTERNAL COMPANY AFFAIRS C) DURING ROUTINE DAILY OPERATIONS D) DURING TRANSACTIONS BETWEEN RELATED BUSINESS ENTITIES

What is the effect on the accounting equation when a business pays the balance due on accounts payable?

What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?

Which area of accounting needs a computerized accounting information system the most—payroll, tax, or preparing financial statements?

What specific accounts are recognized when a business purchases equipment on credit?

Using the information contained in the accounts receivable ledger, the accountant can prepare _________. a. The general ledger balance b. The balance sheet c. The income statement d. A schedule of accounts receivable e. None of the above

That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumption

General Accounting Expert answer

What is the primary purpose of financial accounting? A) To control the spending of a company B) To manage employee payrolls C) To provide financial information to external users for decision-making D) To calculate the company's tax liabilities

Generally accepted accounting principles require that companies use the        of accounting.   Select one: a. accrual basis b. deferral basis c. cash basis d. account basis