SURVEY OF ACCOUNTING UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS COMPLETE STUDY GUIDE FULL SOLUTION

SURVEY OF ACCOUNTING UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE FULL
SOLUTION

●● Types of Businesses
Answer: -Service business
-Merchandising
-Manufacturing


●● Stakeholders in a business
Answer: -Capital market
-Product or service market
-Government
-Internal


●● Business Activities
Answer: -financing
-investing
-operating

,●● Financing Activities (forms of liability)
Answer: -accounts payable
-bonds payable
-note payable


●● Operating Activities
Answer: -revenues (sales, fees earned)
-expenses
(cost of goods sold, merchandise sold, or cost of sales)


●● Accounting (Branches)
Answer: -Financial (associated with preparing reports for external users
of a business)
-Managerial (used to guide management in making financing, investing,
and operations decisions for the company)


●● Objectives of Financial Accounting
Answer: -to report the financial condition of a business at a point in
time.
-to report changes in the financial condition of a business over a period
of time (Statement of Stockholder's equity, Cash flows)


●● Financial Statements

, Answer: Income, Stockholders, Balance Sheet, Cash Flows (statements
integrate)


●● Accounting Formula
Answer: A=L+SE


●● Matching Concept
Answer: matching expenses with revenues that expenses should be
associated with (revenue recognition, expense recognition, principles)


●● business
Answer: organization in which basic resources (inputs), such as
materials and labor are assembled and processed to provide goods or
services (outputs) to customers.


●● Profit
Answer: The difference between the amounts received from customers
for goods or services provided and the amounts paid for the inputs used
to provide the goods or services.


●● Merchandising
Answer: sell products they purchase from other businesses to customers


●● Manufacturing