Specific Accounting Principles Are Basic Assumptions, Concepts, and Guidelines for Preparing

question 190

True/False

Specific accounting principles are basic assumptions, concepts, and guidelines for preparing financial statements and arise out of long-used accounting practice.

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Definitions:

Increase in Long-term Debt

An increase in long-term debt indicates a company has borrowed more funds that are due for repayment beyond the next twelve months.

Acquisition of Fixed Assets

The process of obtaining physical assets that are expected to be used in producing goods or services for a period longer than one fiscal year.

Notes Payable

Short or long-term financial obligations represented by promissory notes that a business owes and has promised to pay by a certain date.

Common Stock

Equity securities that represent ownership shares in a company, providing voting rights and potential dividends to shareholders.