CORRECT ANSWERS|LATEST !!!!2026|GRADED
Accounting - ANSWER a system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in making economic
decisions"
AICPA - ANSWER American Institute of Certified Public Accountants-the professional
organization of certified public accountants in the united states
Balance Sheet - ANSWER document which reports the resources of a company
(assets), the company's obligations (liabilities), and the owner's equity, which represents
how much money has been invested in the company by its owners.
Bookkeeping - ANSWER The preservation of a systematic, quantitative record of an
activity
CPA - ANSWER Certified Public Accountant-a person who has taken a minimum
number of college level accounting classes, has passed the dreaded CPA exam, and has met
other requirements set by his or her state.
Financial Accounting - ANSWER the name given to accounting information provided
for and used by external users
FASB - ANSWER Financial Accounting Standards Board - governmental body that sets
accounting standards in the United States
1
,Financial Statements - ANSWER the three primary financial information documents:
the balance sheet, income statement, and statement of cash flows
Income Statement - ANSWER this document reports the amount of net income
earned by a company during a period, with annual and quarterly income statements being
the most common
IRS - ANSWER Internal Revenue Service m- the government agency responsible for
tax collection and tax law enforcement
IASB - ANSWER International Accounting Standards Board - an independent,
international body formed to develop worldwide accounting standards
IFRS - ANSWER International Financial Reporting Standards - the accounting
standards produced by the IASB
Managerial Accounting - ANSWER the name given to accounting systems designed
for internal users
PCAOB - ANSWER Public Company Accounting Oversight Board - a private, non-
profit organization that effectively serves as an arm of the SEC in registering, inspecting, and
disciplining the auditors of all publicly traded companies.
Statement of Cash Flows - ANSWER a document that reports the amount of cash
collected and paid out by a company in the following three types of activities: operating,
investing, and financing.
Accounting Equation - ANSWER assets = liabilities + owner's equity
2
, Accumulated Other Comprehensive Income - ANSWER the source of theses
increased assets
Assets - ANSWER the firm's economic resources, formally defined as "probable
future economic benefits obtained or controlled by a particular entity as a result of past
transactions or events"
Balance Sheet - ANSWER a statement of financial position - shows the financial
resources the company owns or controls and the claims on those resources
Book Value - ANSWER the book value of an asset is the asset's cost minus the asset's
accumulated depreciation
Comparability - ANSWER information that becomes much more useful when it can
be related to a benchmark or standard
Conservatism - ANSWER a pervasive factor in accounting summarized as, when in
doubt, recognize all losses but don't recognize any gains
Consistency - ANSWER the principle that, once you adopt an accounting principle or
method, continue to follow it consistently in future accounting periods
Disclosure - ANSWER Disclosure in the notes that accompany the financial
statements is the accepted way to convey information to users when the information is too
uncertain to be able to be boiled down into one concrete number
EPS - ANSWER Earnings per Share = tells the owner of one share of stock what she
or she really wanted to know
3
Accounting - ANSWER a system of providing "quantitative information, primarily
financial in nature, about economic entities that is intended to be useful in making economic
decisions"
AICPA - ANSWER American Institute of Certified Public Accountants-the professional
organization of certified public accountants in the united states
Balance Sheet - ANSWER document which reports the resources of a company
(assets), the company's obligations (liabilities), and the owner's equity, which represents
how much money has been invested in the company by its owners.
Bookkeeping - ANSWER The preservation of a systematic, quantitative record of an
activity
CPA - ANSWER Certified Public Accountant-a person who has taken a minimum
number of college level accounting classes, has passed the dreaded CPA exam, and has met
other requirements set by his or her state.
Financial Accounting - ANSWER the name given to accounting information provided
for and used by external users
FASB - ANSWER Financial Accounting Standards Board - governmental body that sets
accounting standards in the United States
1
,Financial Statements - ANSWER the three primary financial information documents:
the balance sheet, income statement, and statement of cash flows
Income Statement - ANSWER this document reports the amount of net income
earned by a company during a period, with annual and quarterly income statements being
the most common
IRS - ANSWER Internal Revenue Service m- the government agency responsible for
tax collection and tax law enforcement
IASB - ANSWER International Accounting Standards Board - an independent,
international body formed to develop worldwide accounting standards
IFRS - ANSWER International Financial Reporting Standards - the accounting
standards produced by the IASB
Managerial Accounting - ANSWER the name given to accounting systems designed
for internal users
PCAOB - ANSWER Public Company Accounting Oversight Board - a private, non-
profit organization that effectively serves as an arm of the SEC in registering, inspecting, and
disciplining the auditors of all publicly traded companies.
Statement of Cash Flows - ANSWER a document that reports the amount of cash
collected and paid out by a company in the following three types of activities: operating,
investing, and financing.
Accounting Equation - ANSWER assets = liabilities + owner's equity
2
, Accumulated Other Comprehensive Income - ANSWER the source of theses
increased assets
Assets - ANSWER the firm's economic resources, formally defined as "probable
future economic benefits obtained or controlled by a particular entity as a result of past
transactions or events"
Balance Sheet - ANSWER a statement of financial position - shows the financial
resources the company owns or controls and the claims on those resources
Book Value - ANSWER the book value of an asset is the asset's cost minus the asset's
accumulated depreciation
Comparability - ANSWER information that becomes much more useful when it can
be related to a benchmark or standard
Conservatism - ANSWER a pervasive factor in accounting summarized as, when in
doubt, recognize all losses but don't recognize any gains
Consistency - ANSWER the principle that, once you adopt an accounting principle or
method, continue to follow it consistently in future accounting periods
Disclosure - ANSWER Disclosure in the notes that accompany the financial
statements is the accepted way to convey information to users when the information is too
uncertain to be able to be boiled down into one concrete number
EPS - ANSWER Earnings per Share = tells the owner of one share of stock what she
or she really wanted to know
3
