ACCCOB1 Module 1 Questions And Answers 2023 Update

ACCCOB1 Module 1 Questions And Answers 2023 Update AICPA definition of accounting - ANS-The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events that are, in part at least, of a financial character, and interpreting the results thereof PICPA definition of accounting - ANS-A system that measures business activities, processes given information into reports, and communicates those findings to decisionmakers 9 basic steps in the accounting cycle - ANS-1. Analyzing business transactions and journalizing 2. Posting to the general ledger 3. Trial balance preparation 4. Worksheet preparation 5. Journalizing and posting adjusting entries 6. Preparing financial statements 7. Journalizing and posting closing entries 8. Preparing post-closing trial balance 9. Journalizing and posting reversing entries Purpose of periodicity - ANS-Allows for a timely measurement of accounting information At the end of each time period, these are prepared - ANS-1. Accounting reports 2. Financial statements Interim period - ANS-Accounting periods shorter than one year (months) Calendar year - ANS-Twelve-month period that begins on January 1 and ends on December 31 Fiscal year - ANS-Twelve-month period that starts from any month other than January Natural business year - ANS-Length of fiscal period is determined by the nature of the business and frequency of need for data Chart of accounts - ANS-An index for account title names; arranged by assets, liabilities, owner's equity, revenues, and expenses. Includes account number. Purpose of the chart of accounts - ANS-Eases the recording and journalizing of transactions General journal - ANS-A book that is used to record business transactions that shows the complete debit and credit effect of transactions in chronological order Roll over - ANS-Decision point at the end of the accounting cycle where the owner decides whether to keep the net income or to reinvest in the business Posting - ANS-The process of transferring journal entries to the ledger accounts Ledger - ANS-Book where all of the accounts listed in the company's chart of accounts are maintained such that it summarizes the increases and decreases of individual accounts Another term for ledger - ANS-Book of final entry Forms of the general ledger - ANS-..,.