Intro To Financial Accounting Exam 1 Latest Actual With Verified Questions & Correct Answers

INTRO TO FINANCIAL ACCOUNTING EXAM 1 LATEST
ACTUAL WITH VERIFIED QUESTIONS & CORRECT
ANSWERS

Question 1.
Accounting consists of three basic activities

ANSWER
Identifies, records, communicates


Question 2.
Who uses Accounting Data

ANSWER
External Users: Creditors and Investors


Question 3.
Recent Financial Scandals

ANSWER
Enron, WorldCom, HealthSouth, AIG


Question 4.
Sarbanes-Oxley Act of (SOX).

ANSWER
Added new criminal charges for accounting scandals


Question 5.
Financial Statements

ANSWER
Balance Sheet Income Statement Statement of Stock Holder's Equity Statement of Cash Flows
Note Disclosure






, Question 6.
Generally Accept ed Accounting Principles (GAAP)

ANSWER
- Standards generally accepted and universally practiced


Question 7.
Standard Setting Bodies

ANSWER
Financial Accounting Standards Board (FASB) (SEC) International Accounting Standards Board
(IASB)


Question 8.
Historical Cost Principle

ANSWER
dictates that companies record assets at their cost.


Question 9.
Fair Value Principle

ANSWER
states that assets and liabilities should be reported at a fair value


Question 10.
Monetary Unit Assumption

ANSWER
companies include in accounting records only transaction data expressed in money.


Question 11.
Economic Entity Assumption

ANSWER
Requires that activities of the entity be kept separate and distinct from activities of the owner