BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Dr Capital Cr Computer equipment
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Dr Computer equipment Cr Capital
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Dr Computer equipment Cr Drawings
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Dr Drawings Cr Computer equipment
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Detailed explanation-1: -Financial accounting involves recording, summarizing, and reporting the stream of transactions and economic activity resulting from business operations over a period of time.
Detailed explanation-2: -The going concern assumption: Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. Means that we can express transactions and events in monetary, or money, units.
Detailed explanation-3: -Recordkeeping/Bookkeeping-is recording of transactions and events, either manually or electronically of an organization’s day-to-day activities. Recordkeeping is only ONE part of accounting. Accounting-is the process of analyzing and drawing conclusions from this information.
Detailed explanation-4: -What Is an Example of Financial Accounting? A public company’s income statement is an example of financial accounting. The company must follow specific guidance on what transactions to record.