Ac550 Essay

370 WordsMar 13, 20122 Pages
CA1-1 1) True 2) False; Any company that is claiming compliance with GAPP must comply with all standards and interpretations , this includes disclosure requirements 3) True 4) False; The FASB should be held responsible to the needs and view points of the entire economic community not just the public accounting principle and it also should operate in full view of the public. CA1-3 1) (d) 2) (d) 3) (d) 4) (a) 5) (a) 6) (b) 7) (d) 8) (b) E2-5 a) Gains, Losses b) Liabilities c) Investment by owners, comprehensive income d) Distribute to owners e) Comprehensive income f) Asset g) Comprehensive income h) Revenue, expenses i) Equity j) Revenue k) Distribution to owners l) Comprehensive income E2-7 a) Historical cost principle b) Full disclosure principle c) Matching principle d) Materiality e) Industry practices f) Economic entity assumptions g) Full disclosure principle h) Revenue recognition principle i) Full disclosure principle j) Matching principle k) Economic entity principle l) Periodicity assumption m) Matching principle n) Historical cost principle o) Matching principle E3-1 April 2 Cash …………………………….30,000 Equipment ………………….14,000 Christine ewing capital……………………….44,000 April 3 Supplies……………………..700 Accounts payable……………………………700 April 7 Rent expense …………….600 Cash……………………………………………….600 April 11 Accounts receivable….1,100 Service revenue……………………………1,100 April 12 Cash…………………………3,200 Unearned services………………………3,200 April 17 Cash……………………….2,300 Earned services………………………….2,300 April 21 Insurance expense….. 110 Cash……………………………………….110 April 30 Salaries expense……..1,160 Cash……………………………………..1,160 E3-5

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