Rutgers Introduction to
Financial Accounting
Exam 1 2026 | Study Guide
& Practice Questions with
Answers and Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Three Basic Activities of Accounting identify, record, communicate
Internal Users marketing, management, finance, human resources
External Users investors and creditors
Ethics standards of conduct by which one's actions are judged as right or wrong; fair or
unfair; honest or dishonest
Generally Accepted Accounting Principles (GAAP) standards that are generally accepted and universally practiced
Historical Cost Principle dictates that companies record assets at their cost
Fair Value Principle states that assets and liabilities should be reported at fair value
Monetary Unit Assumption requires that companies include accounting records only transaction data that
can be expressed in fair terms of money
Economic Entity Assumption requires that activities of the entity kept separate and distinct from the other
activities of its owner and all other economic entities
Forms of Business Ownership proprietorship, partnership, corporation
Proprietorship owned by one person; owner receives all profits and is responsible for all debts
Partnership owned by two or more persons; unlimited personal liability; partnership
agreement
Corporation ownership divided into shares; separate legal entity organized under corp. law;
limited liability
Basic Accounting Equation Assets = Liabilities + Stockholder's Equity
Transactions business's economic events recorded by accountants; external or internal
Retained Earnings Revenues - Expenses - Dividends
Financial Accounting
Exam 1 2026 | Study Guide
& Practice Questions with
Answers and Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Three Basic Activities of Accounting identify, record, communicate
Internal Users marketing, management, finance, human resources
External Users investors and creditors
Ethics standards of conduct by which one's actions are judged as right or wrong; fair or
unfair; honest or dishonest
Generally Accepted Accounting Principles (GAAP) standards that are generally accepted and universally practiced
Historical Cost Principle dictates that companies record assets at their cost
Fair Value Principle states that assets and liabilities should be reported at fair value
Monetary Unit Assumption requires that companies include accounting records only transaction data that
can be expressed in fair terms of money
Economic Entity Assumption requires that activities of the entity kept separate and distinct from the other
activities of its owner and all other economic entities
Forms of Business Ownership proprietorship, partnership, corporation
Proprietorship owned by one person; owner receives all profits and is responsible for all debts
Partnership owned by two or more persons; unlimited personal liability; partnership
agreement
Corporation ownership divided into shares; separate legal entity organized under corp. law;
limited liability
Basic Accounting Equation Assets = Liabilities + Stockholder's Equity
Transactions business's economic events recorded by accountants; external or internal
Retained Earnings Revenues - Expenses - Dividends
