Accounting 101 Final questions n
answers rated A+
What are assets recorded at? - ANS ✔✔The historical/original cost because it is objective and
verifiable.
Left side - ANS ✔✔Debit
Right side - ANS ✔✔Credit
The 3 forms of business entities - ANS ✔✔Proprietorship, Partnership, Corperation
What is the definition of a revenue? - ANS ✔✔inflows of resources that increase retained
earnings by delivering goods or service to customers
What is the definition of an expense? - ANS ✔✔resource outflows that decrease retained
earnings due to operations
What is the difference between internal and external users? - ANS ✔✔Financial accounting is
for those externally - that way investors, creditors, government agencies, and the public can
make decisions.
Management accounting is for those internally - information for managers to base their
decisions upon.
What does FASB stand for? - ANS ✔✔Financial
Accounting
Standards
, Board
What is FASB responsible for? - ANS ✔✔GAAP (Generally Accepted Accounting Principles)
What is the accounting equation? - ANS ✔✔Assets = Liabilities + Owners Equity
What are the 3 activities a business engages in? - ANS ✔✔Operating -
Investing -
Financing -
What does IFSB stand for? - ANS ✔✔International Accounting Standards Board
Who set the worldwide accounting standards? - ANS ✔✔IASB ( International Accounting
Standards Board)
What is the primary objective of financial accounting? - ANS ✔✔To provide useful information
for decision making.
What makes information relevant? - ANS ✔✔It has to be a material that would make the
decision maker decide for or against an idea.
Financial information should be understandable to whom? - ANS ✔✔Everyone looking to make
financial decisions
What is on the balance sheet? - ANS ✔✔assets, liabilities, and owners equity
What is on the income statement? - ANS ✔✔revenues - expenses = net income
answers rated A+
What are assets recorded at? - ANS ✔✔The historical/original cost because it is objective and
verifiable.
Left side - ANS ✔✔Debit
Right side - ANS ✔✔Credit
The 3 forms of business entities - ANS ✔✔Proprietorship, Partnership, Corperation
What is the definition of a revenue? - ANS ✔✔inflows of resources that increase retained
earnings by delivering goods or service to customers
What is the definition of an expense? - ANS ✔✔resource outflows that decrease retained
earnings due to operations
What is the difference between internal and external users? - ANS ✔✔Financial accounting is
for those externally - that way investors, creditors, government agencies, and the public can
make decisions.
Management accounting is for those internally - information for managers to base their
decisions upon.
What does FASB stand for? - ANS ✔✔Financial
Accounting
Standards
, Board
What is FASB responsible for? - ANS ✔✔GAAP (Generally Accepted Accounting Principles)
What is the accounting equation? - ANS ✔✔Assets = Liabilities + Owners Equity
What are the 3 activities a business engages in? - ANS ✔✔Operating -
Investing -
Financing -
What does IFSB stand for? - ANS ✔✔International Accounting Standards Board
Who set the worldwide accounting standards? - ANS ✔✔IASB ( International Accounting
Standards Board)
What is the primary objective of financial accounting? - ANS ✔✔To provide useful information
for decision making.
What makes information relevant? - ANS ✔✔It has to be a material that would make the
decision maker decide for or against an idea.
Financial information should be understandable to whom? - ANS ✔✔Everyone looking to make
financial decisions
What is on the balance sheet? - ANS ✔✔assets, liabilities, and owners equity
What is on the income statement? - ANS ✔✔revenues - expenses = net income
