Select the correct characteristic, concept, assumption, or constraint for the following. The concept that determines when expenses are recognized is called 1. 2. 3. is the process of determining the amour revenue neutral consistency The recognition principle requires that historical cost in the acci matching reporting entity concept The amount an asset could be sold for in the market is called measurement fair value going concern occurs when companies use the same accounting principles and methods from year to year. 4. 5. Faithful representation requires that information be complete, and free from error. 6. The amount referred to when a transaction is measured at the amount of cash that was paid or at the value exchanged is called 7. The requires that the personal activities of an owner and the business activities of his/her compar 8. This assumption is one of the most important in GAAP and assumes that the reporting entity will 9. View Policies Current Attempt in Progress An external user would NOT include O human resources personnel. O the company's bank. O Canada Revenue Agency. O a creditor of the company. View Policies Current Attempt in Progress Which of the following is NOT an advantage of the corporate form of business organization? O unlimited life O limited liability of shareholders O unlimited personal liability for shareholders O transferability of ownership Judy and Marilyn met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a O partnership. O not-for-profit organization. O proprietorship. O corporation. Current Attempt in Progress Which of the following is NOT a characteristic of the corporate form of business organization? O unlimited liability O responsible for paying its own income taxes O separate legal entity O shares are transferable Current Attempt in Progress Which of the following would violate the reporting entity concept? O Reporting amounts owed to the company's suppliers as a liability on the balance sheet. O Reporting the owner's personal sailboat as an asset on the balance sheet. O Reporting withdrawals by the owner as a drawing in the statement of owner's equity. O Reporting equipment owned and used in the business as an asset on the balance sheet. Current Attempt in Progress Which of the following requires that the activities of a business be kept distinct from those of its owner(s)? O going concern assumption O cost principle O monetary unit concept O reporting entity concept Swifty Company has total liabilities of $ 10400 and total assets of $ 15400. Based on this information, Swifty Company's owner's equity must be O $ 0. O $ 15400. O $ 10400. O $5000. Current Attempt in Progress When an owner, in a proprietorship or partnership, withdraws cash or other assets from a business for personal use, these withdrawals are termed O expenses. O salary. O drawings. O a credit line. Rock Support Ltd. and Pool Equipment Rentals Company sign a contract to rent equipment in the next two years. What is the impact of this event on the accounting equation for Rock? O Assets decrease and liabilities decrease. O Owner's equity increases and assets increase. O Assets increase and liabilities increase. O No impact on the accounting equation. If an owner makes a withdrawal of cash from a proprietorship, then O assets will decrease and owner's equity will decrease. Othere has been a violation of accounting principles. O assets will decrease and owner's equity will increase. O assets will decrease and liabilities will increase. Select the correct characteristic, concept, assumption, or constraint for the following. The concept that determines when expenses are recognized is called 1. 2. 3. is the process of determining the amour revenue neutral consistency The recognition principle requires that historical cost in the acci matching reporting entity concept The amount an asset could be sold for in the market is called measurement fair value going concern occurs when companies use the same accounting principles and methods from year to year. 4. 5. Faithful representation requires that information be complete, and free from error. 6. The amount referred to when a transaction is measured at the amount of cash that was paid or at the value exchanged is called 7. The requires that the personal activities of an owner and the business activities of his/her compar 8. This assumption is one of the most important in GAAP and assumes that the reporting entity will 9. View Policies Current Attempt in Progress An external user would NOT include O human resources personnel. O the company's bank. O Canada Revenue Agency. O a creditor of the company. View Policies Current Attempt in Progress Which of the following is NOT an advantage of the corporate form of business organization? O unlimited life O limited liability of shareholders O unlimited personal liability for shareholders O transferability of ownership Judy and Marilyn met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a O partnership. O not-for-profit organization. O proprietorship. O corporation. Current Attempt in Progress Which of the following is NOT a characteristic of the corporate form of business organization? O unlimited liability O responsible for paying its own income taxes O separate legal entity O shares are transferable Current Attempt in Progress Which of the following would violate the reporting entity concept? O Reporting amounts owed to the company's suppliers as a liability on the balance sheet. O Reporting the owner's personal sailboat as an asset on the balance sheet. O Reporting withdrawals by the owner as a drawing in the statement of owner's equity. O Reporting equipment owned and used in the business as an asset on the balance sheet. Current Attempt in Progress Which of the following requires that the activities of a business be kept distinct from those of its owner(s)? O going concern assumption O cost principle O monetary unit concept O reporting entity concept Swifty Company has total liabilities of $ 10400 and total assets of $ 15400. Based on this information, Swifty Company's owner's equity must be O $ 0. O $ 15400. O $ 10400. O $5000. Current Attempt in Progress When an owner, in a proprietorship or partnership, withdraws cash or other assets from a business for personal use, these withdrawals are termed O expenses. O salary. O drawings. O a credit line. Rock Support Ltd. and Pool Equipment Rentals Company sign a contract to rent equipment in the next two years. What is the impact of this event on the accounting equation for Rock? O Assets decrease and liabilities decrease. O Owner's equity increases and assets increase. O Assets increase and liabilities increase. O No impact on the accounting equation. If an owner makes a withdrawal of cash from a proprietorship, then O assets will decrease and owner's equity will decrease. Othere has been a violation of accounting principles. O assets will decrease and owner's equity will increase. O assets will decrease and liabilities will increase