1. The responsibility for establishing generally accepted accounting principles (GAAP) lies with the Financial Accounting Standards Board (FASB).

   True

   False

1. Most companies list assets on the balance sheet in order of the size of the dollar amount of each asset.

   True

   False

1. Rules of Debit and Credit: For each of the following accounts (Q11-Q14), indicate whether the account is an asset (A), liability (L), or stockholders' equity (SE) and whether the account increases with a debit (Dr) or credit (Cr):

   Q13. Retained Earnings

   	A.	(A,Dr)
   	B.	(A,Cr)
   	C.	(L,Dr)
   	D.	(L,Cr)
   	E.	(SE,Cr)

Rules of Debit and Credit: For each of the following accounts (Q11-Q14), indicate whether the account is an asset (A), liability (L), or stockholders' equity (SE) and whether the account increases with a debit (Dr) or credit (Cr):

Q14. Unearned Revenue

	A.	(A,Dr)
	B.	(A,Cr)
	C.	(L,Dr)
	D.	(L,Cr)
	E.	(SE,Cr)

Which of the following list of accounts would normally have a debit balance?

	A.	Accounts Payable, Service Revenue, Common Stock.
	B.	Salary Payable, Unearned Revenue, Cost of Goods Sold
	C.	Income Tax Payable, Service Revenue, Retained Earnings.
	D.	Cash, Insurance Expense, Accounts Receivable.

1. Revenue earned should be reported on the income statement regardless of cash being received from clients.

   True

   False

Answer rating: 100% (QA)

1Answer True Explanation in the United States accounting standard are set by the Financial Accountin... View the full answer