Accountıng I

Yanıt Açıklaması: Equipment is an example of  non current assets.

Yanıt Açıklaması: Identify business activities Record the business transactions and Recording includes recording, classifying, and summarizing Communicates the results to decision makers Al of them are true for accounting information system.

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. Examples for assets are Cash, Supplies, Merchandise Inventory, Furniture, Land, Buildings, Equipments. The correct answer is A.

Yanıt Açıklaması: A chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledger. The numbering system usually starts with the balance sheet accounts and follows with the income statement accounts.

Yanıt Açıklaması: For the preparation of financial statements, the starting point is the adjusted trial balance . After the preparation of adjusted trial balance and financial statements, closing entries will be recorded in order to get accounts ready for the next year

Yanıt Açıklaması: Dual effect means that at least two items must be affected by a transaction and accounting equation has to remain in balance after making the changes in accounting equation. There are four main financial statements prepared by using summarized accounting data: Income statement, owner’s equity statement, balance sheet and statement of cash flows.

Yanıt Açıklaması: Debiting refers to the act of making an entry on the left side of an account and when debit amount exceeds credits, debit balance occurs.

Yanıt Açıklaması: The first step of the accounting process consists of identifying the financial transactions related with the organization.

Yanıt Açıklaması: The monetary unit assumption requires that financial transactions can only be recorded if the transaction data can be expressed in terms of money. In other words, monetary unit is an accounting concept which assumes that business transactions or events can be measured and expressed in terms of monetary units and the monetary units are stable and dependable. the monetary unit assumption does not cause any decrease in the quality of financial information. The correct answer is C.

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

Yanıt Açıklaması: Revenue recognition principle dictates that revenue is recognized when it is earned not the cash is received.

Yanıt Açıklaması: Posting is the procedure of transferring journal entries to the ledger accounts. The correct answer is D.

Yanıt Açıklaması: Assets = Liabilities + Owner’s Equity

Yanıt Açıklaması: The fair value principle states that assets and liabilities are reported at their fair value. If the company chooses to apply fair value principle, the reported value of the land will be 250,000 TL.

Yanıt Açıklaması: Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life

Yanıt Açıklaması: Opening entries based on opening balance sheet is the first step of the accounting circle.

Yanıt Açıklaması: Contributions by owner are the assets put in the business by the owner. Distributions to owner are withdrawals of cash or other assets by the owner for personal use. Expenses are the cost of assets consumed or services rendered in the process of earning revenue. Revenues are the gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income.  The owner’s equity is also called as residual equity.

Yanıt Açıklaması: Salaries and Wages Expense / Cash

Yanıt Açıklaması: There are four main financial statements prepared by using summarized accounting data: Income statement, owner’s equity statement, balance sheet and statement of cash flows.

Yanıt Açıklaması: Owner’s equity shows the owners’ investments, profit and loss of the period.