International Accounting Standards Board (IASB) which is a not-for-profit, public interest organization established to develop a single set of high-quality, understandable, enforceable and globally accepted accounting standards called International Financial Reporting Standards (IFRS). As of the end of 2017, 126 countries now require the use of International Financial Reporting Standards for all or most publicly listed companies, whilst a further 12 countries permit its use. On the other hand, The Financial Accounting Standards Board (FASB) is the primary accounting standard-setting body in the United States and issues Financial Accounting Standards that are called Generally Accepted Accounting Principles (GAAP) which is a common set of standards used by accountants in United States. 

Residual value as land has an indefinite useful life, it is not subject to depreciation.

The correct answer is B.

The correct answer is an adjusted trial balance. Adjusted trial balance is the last step to prepare financial statements. 

Beginning of the period activities deal with the opening transactions of the company. After the closing entries done for the previous term, the accounts have to be opened for the new fiscal year. The opening of the accounts is based on the opening balance sheet.

At the end of the period, the company must calculate the results of its operations. In other words, the company must ascertain the term’s profit or loss. For this aim, the balances of revenue accounts and expense accounts have to be posted to Income Summary account. By accounting meaning, the revenue accounts and expense accounts have to be closed and their balances have to be posted to Income Summary account. Because the company has so many different revenue and expense accounts separately, they have to be accumulated under one account in order to figure out the exact result. This account is the Income Summary account. After the accumulation of revenues and expenses under Income Summary account, the final result is clear. 

Transferring the balances of the revenue and expense accounts to Income summary account, and transferring Income Summary account’s balance to Capital account are called the “Closing Entries”. The accounts which are closed at the end of the term are called “temporary accounts” because they hold only one period’s transactions and they have to be zeroed for the next period. 

Assets

Balance sheet reports the assets, liabilities and the owner’s equity in a specific date.Statement of owner’s equity reports the changes in the capital throughout the period caused by the owner’s capital investments or withdrawals, net profit or loss.

At the end of the period, we have to get the adjustment data. Data needed for adjusting entries include the following:
a. Office supplies on hand 
b. Companies' equipment
c. Accrued salary expense 
d. Accrued service revenue 

The correct answer is C. Balance sheet reports the assets, liabilities, and owner’s equity of the business at a specific date. İncome statement and cash flow statement cover a specific period. The statement of changes in shareholders' equity includes an accounting period.

Expense is the cost of assets consumed or
services used during the revenue earning
process.

The correct answer is D. Because in a journal entry, debits are always entered first, and credits are intended and listed second.

Identification of transaction includes analyzing of each transaction in terms of its effect on the items of the accounting equation, identifying the specific items affected and determining the amount of the change in each item.

It is important to know when companies should recognize revenue, in other words, when the companies earned the revenue. Revenue recognition principle will guide us. But first of all we will start with the definition of revenue and expense terms. Revenue is the gross inflow of economic benefits during the period arising from the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants. Expense is outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations. 

Transfer the journal information to the appropriate accounts in the ledger.

In the basic accounting equation, assets must always equal the sum of liabilities and owner’s equity. The order and position of the assets, liabilities, and owner’s equity in the equation does not reflect a random situation. Assets are always showed on the left side of the equation while liabilities and owner’s equity are always showed on the right side of the equation. The logic of this positioning creates the background of using debits and credits in recording process. C is the right answer.

In the basic accounting equation, assets must always equal the sum of liabilities and owner’s equity. The order and position of the assets, liabilities, and owner’s equity in the equation does not reflect a random situation. Assets are always showed on the left side of the equation while liabilities and owner’s equity are always showed on the right side of the equation.

Assets are recorded at their cost when acquired by the company and this value stays same over the time according to the historical cost principle. On the other hand, the fair value principle dictates that assets and liabilities should be reported at their fair values. Simply, fair value refers the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, contrary to historical cost principle, the recorded monetary amount of the asset should be revalued at reporting date according to the fair value principle. E is the right answer.

Journal  

In a general sense, Accounting is an information system which provides financial information about the entity for decision makers. This system includes three kinds of basic activities which are identifying, recording and communicating of the financial transactions of an entity.

The correct answer is E.