Top Mark Questions and Correct Verified Answers
ACC 210 Accounting & Finance-
Questions and Correct Verified Answers
Assets
✓ what a company owns
Liability
✓ what a company owes
Equity
✓ what is kept; residual assets
net income
✓ profit
Assets =
✓ Liability + Equity
Liability =
✓ Assets - Equity
Equity =
✓ Assets - Liabilities
Assets Examples
Top Mark !!!
11
, Top Mark Questions and Correct Verified Answers
✓ cash; investments; inventory; property, plant & equipment (buildings, land,
equipment)
Accounting
✓ The information system that measures business activities, processes that
information into reports, and communicates the results to decision makers
Financial accounting
✓ field of accounting that focuses on providing information for external decision
makers
Managerial accounting
✓ field of accounting that focuses on providing information for internal decision
makers
Creditor
✓ Any person or business to whom a business owes money
Certified Public Accountants (CPAs)
✓ Licensed professional accountants who serve the general public
Certified Management Accountants (CMAs)
✓ Professional accountants who specialize and work for a single company
Financial Accounting Standards Board (FASB)
✓ The private organization that oversees the creation and governance of accounting
standards in the United States
Securities and Exchange Commission (SEC)
Top Mark !!!
22
, Top Mark Questions and Correct Verified Answers
✓ U.S. governmental agency that oversees the U.S. financial markets.
Generally Accepted Accounting Principles (GAAP)
✓ Accounting guidelines, formulated by the Financial Accounting Standards Board
(FASB), the main U.S. accounting rulebook.
Faithful Representation
✓ Providing information that is complete, neutral, and free from error
Cost Principle
✓ states that acquired assets and services should be recorded at their actual cost
Monetary Unit Assumption
✓ assumes that items on the financial statements are recorded in a monetary unit
Economic Entity Assumption
✓ requires an organization to be a separate economic unit
Going Concern Assumption
✓ assumes that an entity will remain in operation for the foreseeable future
International Accounting Standards Board (IASB)
✓ creates International Financial Reporting Standards
Sole Proprietorship
✓ A business with a single owner
Top Mark !!!
33
ACC 210 Accounting & Finance-
Questions and Correct Verified Answers
Assets
✓ what a company owns
Liability
✓ what a company owes
Equity
✓ what is kept; residual assets
net income
✓ profit
Assets =
✓ Liability + Equity
Liability =
✓ Assets - Equity
Equity =
✓ Assets - Liabilities
Assets Examples
Top Mark !!!
11
, Top Mark Questions and Correct Verified Answers
✓ cash; investments; inventory; property, plant & equipment (buildings, land,
equipment)
Accounting
✓ The information system that measures business activities, processes that
information into reports, and communicates the results to decision makers
Financial accounting
✓ field of accounting that focuses on providing information for external decision
makers
Managerial accounting
✓ field of accounting that focuses on providing information for internal decision
makers
Creditor
✓ Any person or business to whom a business owes money
Certified Public Accountants (CPAs)
✓ Licensed professional accountants who serve the general public
Certified Management Accountants (CMAs)
✓ Professional accountants who specialize and work for a single company
Financial Accounting Standards Board (FASB)
✓ The private organization that oversees the creation and governance of accounting
standards in the United States
Securities and Exchange Commission (SEC)
Top Mark !!!
22
, Top Mark Questions and Correct Verified Answers
✓ U.S. governmental agency that oversees the U.S. financial markets.
Generally Accepted Accounting Principles (GAAP)
✓ Accounting guidelines, formulated by the Financial Accounting Standards Board
(FASB), the main U.S. accounting rulebook.
Faithful Representation
✓ Providing information that is complete, neutral, and free from error
Cost Principle
✓ states that acquired assets and services should be recorded at their actual cost
Monetary Unit Assumption
✓ assumes that items on the financial statements are recorded in a monetary unit
Economic Entity Assumption
✓ requires an organization to be a separate economic unit
Going Concern Assumption
✓ assumes that an entity will remain in operation for the foreseeable future
International Accounting Standards Board (IASB)
✓ creates International Financial Reporting Standards
Sole Proprietorship
✓ A business with a single owner
Top Mark !!!
33
