The business received cash from customer for the service rendered on account. What is Value Parted with?
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Cash
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Service Income
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Cancellation of Payables
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Cancellation of Receivables
The business rendered service to customer on account. What is Value Received?
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Accounts Receivable
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Accounts Payable
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Cash
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Service Income
In what accounting element can we classify Inventories?
Expense
Asset
Liabilities
Equity
In what accounting element can we classify Salary Expense?
Expense
Liabilities
Equity
Assets
What account type is the rent expense account?
Expense
Liabilities
Revenue
Asset
An accounting standard can be ignored if the net impact on the financial statements that a reader of the financial statements would not be misled.
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Conservatism
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Objectivity
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Full disclosure
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Materiality
The bookkeeper asked for the invoice evidencing the payment before recording it in journal.
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Money measurement
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Materiality
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Going concern
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Objectivity
Failure to keep information confidential could open the door to fraud & other illegal activities if the information is shared with the wrong parties.
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Confidentiality of information
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Integrity standards
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Proffesional skill
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Independence & objectivity
Information is based on actual costs incurred in transactions.
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Full Disclosure
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Business Entity Concept
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Matching Principle
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History Cost Principle
These are broad, general statements or "rules" and "procedures" that serve as guides in the practice of accounting.
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Accounting Ethics
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Accounting Principles
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Professionalism
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General Accounting Procedures
