1)The objectivity principle?
Means that information is supported by independent, unbiased evidence.
Means that information can be based on what the preparer thinks is true.
Means that financial statements should contain information that is optimistic.
Means that a business may not reorganize revenue until cash is received.
All of the above.
2)A partnership?
Is also called a sole proprietorship.
Has unlimited liability.
Has to have a written agreement in order to be legal.
Is a legal organization separate from its owners.
Has owners called shareholders
3)Unearned revenues are?
Revenues that have been earned and received in cash.
Revenues that have been earned but not yet collected in cash.
Liabilities created when a customer pays in advance for products or services before the revenue is earned.
Recorded as an asset in the accounting records.
Increases to owners' capital.
4)Prepaid expenses are?
Payments made for products and services that do not ever expire.
Classified as liabilities on the balance sheet.
Decreases in equity.
Assets that represent prepayments of future expenses.
Promises of payments by customers.
1)The objectivity principle?
Means that information is supported by independent, unbiased evidence.
2)A partnership?
Has unlimited liability.
3)Unearned revenues are?
Liabilities created when a customer pays in advance for products or services before the revenue is earned.
4)Prepaid expenses are?
Assets that represent prepayments of future expenses.
1) The correct answer is: Means that information is supported by independent, unbiased evidence. The objectivity principle in accounting states that financial information should be based on reliable and verifiable evidence. It means that financial statements should be prepared objectively, without bias or personal opinions.
To determine the correct answer, you need to understand the concept of the objectivity principle in accounting. You can find this information in accounting textbooks, online accounting resources, or by consulting accounting professionals. The objectivity principle is one of the fundamental principles of accounting, so it should be covered in any reliable source on the subject.
2) The correct answer is: Has unlimited liability. A partnership is a type of business structure where two or more individuals share ownership and responsibilities. In a partnership, the partners have unlimited liability, which means they are personally responsible for the debts and obligations of the partnership.
To determine the correct answer, you need to understand the characteristics of a partnership. You can find this information in business textbooks, legal resources, or by consulting legal professionals. Partnerships are distinct from sole proprietorships, have unlimited liability for its partners, and typically do not require a written agreement to be legal.
3) The correct answer is: Liabilities created when a customer pays in advance for products or services before the revenue is earned. Unearned revenues, also known as deferred revenues, are liabilities created when a customer pays in advance for products or services that the company is obligated to provide in the future. These revenues are recorded as a liability on the balance sheet until they are earned.
To determine the correct answer, you need to understand the concept of unearned revenues. You can find this information in accounting textbooks, online accounting resources, or by consulting accounting professionals. Unearned revenues are a common accounting concept in businesses that receive advance payments, such as subscription-based services or prepaid gift cards.
4) The correct answer is: Assets that represent prepayments of future expenses. Prepaid expenses are assets that represent payments made in advance for future expenses. When a company pays for a product or service before it is used or consumed, the payment is recorded as a prepaid expense on the balance sheet.
To determine the correct answer, you need to understand the concept of prepaid expenses. You can find this information in accounting textbooks, online accounting resources, or by consulting accounting professionals. Prepaid expenses are a common accounting concept in businesses that make advance payments for items like rent, insurance, or supplies. They are classified as assets because they represent future economic benefits for the company.
1) The objectivity principle means that information is supported by independent, unbiased evidence.
2) A partnership is a legal organization separate from its owners.
3) Unearned revenues are liabilities created when a customer pays in advance for products or services before the revenue is earned.
4) Prepaid expenses are assets that represent prepayments of future expenses.