FAC1503 Exam Questions and Answers
Financial Accounting Principles for Law
Basic accounting principles
.Accounting - ANSWER-systematic recording, reporting and analysis of financial transactions according
to accepted principles in order to provide meaningful financial information
.Accounts Payable - ANSWER-comprised of all short-term obligations owed by your business to
creditors,
suppliers and other vendors
.Accounts Receivable - ANSWER-money owed to the business for purchases made by customers,
suppliers and
other vendors
.Assets - ANSWER-are items of value owned by the company
.Cash - ANSWER-is money available immediately
.Cost of Goods Sold - ANSWER-cost directly associated with making or acquiring products
.Current Assets - ANSWER-are any assets easily converted into cash within one calendar year
.Discretionary Expenses - ANSWER-expenses which are not necessary to daily operation of the business
Financial Accounting Principles for Law
Basic accounting principles
.Accounting - ANSWER-systematic recording, reporting and analysis of financial transactions according
to accepted principles in order to provide meaningful financial information
.Accounts Payable - ANSWER-comprised of all short-term obligations owed by your business to
creditors,
suppliers and other vendors
.Accounts Receivable - ANSWER-money owed to the business for purchases made by customers,
suppliers and
other vendors
.Assets - ANSWER-are items of value owned by the company
.Cash - ANSWER-is money available immediately
.Cost of Goods Sold - ANSWER-cost directly associated with making or acquiring products
.Current Assets - ANSWER-are any assets easily converted into cash within one calendar year
.Discretionary Expenses - ANSWER-expenses which are not necessary to daily operation of the business
