Principles Of Accounting Exam 1 (2024) | Questions & Answers (Graded A+)

Principles Of Accounting Exam 1 (2024) | Questions & Answers (Graded A+) Principles Of Accounting Exam 1 (2024) | Questions & Answers (Graded A+) Accounting - ANSWER - An information system that provides reports to stakeholders about the economic activities and condition of a business. Business Entity Concept - ANSWER - A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business. generally accepted accounting principles (GAAP) - ANSWER - Generally accepted guidelines for the preparation of financial statements. (In the USA) Financial Accounting Standards Board (FASB) - ANSWER - The authoritative body that has the primary responsibility for developing accounting principles. (Sets the rules for GAAP) Securities and Exchange Commission (SEC) - ANSWER - An agency of the U.S. government that has authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public. International Accounting Standards Board (IASB) - ANSWER - An organization that issues International Financial Reporting Standards for many countries outside the United States. International Financial Reporting Standards (IFRS) - ANSWER - Emerged to reduce cross-country differences in accounting standards, primarily in countries outside of North America. Matching Concept - ANSWER - A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses. Cost Concept - ANSWER - A concept of accounting that determines the amount initially entered into the accounting records for purchases. Forms of Business Entities - ANSWER - Proprietorship, Partnership, Corporation, and Limited Liability Company Revenue Recognition Concept - ANSWER - The accounting concept that supports reporting revenues when the services are provided to customers. Accounting Equation - ANSWER - Assets= Liabilities + Owner's Equity Assets - ANSWER - The resources owned by a business.