Exam 3: The Accounting Information System

Jenna Jeffries started her business baking dog treats by investing cash of $1000.During May its first month of operations Jenna's Barkery had revenues of $3000 all of which was collected in cash.She paid her assistant $1000 in cash and purchased $200 of supplies on account.The business paid cash dividends of $500. Jenna will record the purchase of the supplies by

Different companies using the same accounting principles is an application of

A company using the same accounting principles from year to year is an application of

Receiving payment of a portion of an accounts receivable will

The payment of a liability decreases both cash and accounts payable.

The principle that indicates that an asset should be reported at the price which would be received to sell the asset is the

The economic entity assumption states that economic events

A paid dividend

Materiality relates to whether an item is significant enough to likely influence the decision of an investor or creditor.

In order for information to be relevant it must be reported on a monthly basis.

Information that is presented in a clear fashion so that users can interpret it is an example of

If services are rendered for cash then

Accounting information should be neutral in order to enhance

The periodicity assumption states that every economic entity can be separately identified and accounted for.

If expenses are paid in cash then

An expense

Revenue increases stockholders' equity and should be recorded whenever cash is received from customers.

Which of the following organizations issues accounting standards for countries outside the United States?

A revenue generally

If services are rendered on account then