ACCT 2101 Exam 1 - (UGA) questions
with verified answers 2025/2026
Generally Accepted Accounting Principles (GAAP) - ANS ✔✔rules and concepts that govern
financial accounting practice
Securities and Exchange Commission (SEC) - ANS ✔✔establishes reporting requirements and
sets GAAP for companies that issue stock to the public
Financial Accounting Standards Board (FASB) - ANS ✔✔private group that sets both broad and
specific principles
Sarbanes-Oxley Act of 2002 - ANS ✔✔requires that public companies apply both accounting
oversight and stringent internal controls to ensure more transparency, accountability, and
truthfulness in reporting transactions
Measurement Principle / Cost Principle - ANS ✔✔accounting information should be based on its
actual cost
Revenue Recognition Principle - ANS ✔✔record revenues in the accounting period when
EARNED
Matching Principle / Expense Recognition - ANS ✔✔a company must record its expenses
incurred to generate the revenue
Full Disclosure Principle - ANS ✔✔a company must include all information in financial
statements that would impact users' decisions
with verified answers 2025/2026
Generally Accepted Accounting Principles (GAAP) - ANS ✔✔rules and concepts that govern
financial accounting practice
Securities and Exchange Commission (SEC) - ANS ✔✔establishes reporting requirements and
sets GAAP for companies that issue stock to the public
Financial Accounting Standards Board (FASB) - ANS ✔✔private group that sets both broad and
specific principles
Sarbanes-Oxley Act of 2002 - ANS ✔✔requires that public companies apply both accounting
oversight and stringent internal controls to ensure more transparency, accountability, and
truthfulness in reporting transactions
Measurement Principle / Cost Principle - ANS ✔✔accounting information should be based on its
actual cost
Revenue Recognition Principle - ANS ✔✔record revenues in the accounting period when
EARNED
Matching Principle / Expense Recognition - ANS ✔✔a company must record its expenses
incurred to generate the revenue
Full Disclosure Principle - ANS ✔✔a company must include all information in financial
statements that would impact users' decisions
