Accounting 2301 UTA Exam 1
Questions And Answers 100% Correct
Creditor Any person or business to whom a business owes money
Certified Public Accountant (CPA) Licensed professional accountants who serve the
general public.
Certified Management Accountant (CMA) Certified professionals who specialize in
accounting and financial management knowledge. They typically work for a single company.
Financial Accounting Standards Board (FASB) Privately funded organization, oversees
the creation and governance of accounting standards
Security and Exchange Commission (SEC) U.S. governmental agency that oversees the
U.S. financial markets.
FASB and SEC Work Together
, Accounting 2301 UTA Exam 1
Questions And Answers 100% Correct
Generally Accepted Accounting Principles (GAAP) Accounting guidelines, formulated by
the FASB, the main U.S accounting rulebook
Economic Entity Assumption Organization that stands apart as a separate economic unit
Sole Proprietorship A business owned by one person
Partnership A business with two or more owners and not organized as a corporation
Corporation A business organized under state law that is a separate legal entity.
Limited Liability Company (LLC) A company in which each member is only liable for his
or her own actions.
Stockholders A person who owns stock in a corporation
, Accounting 2301 UTA Exam 1
Questions And Answers 100% Correct
Cost Principle States that acquired assets and services should be recorded at their actual
cost
Going Concern Assumption Assumes that the entity will remain in operation for the
foreseeable future.
Monetary Unit Assumption Accountants assume that the dollar is the most effective
means to communicate economic activity, its most stable.
International Financial Reporting Standards (IFRS) Accounting standards, issued by the
IASB, that have been adopted by many countries outside of the United States.
Accounting Equation Assets = Liabilities + Equity
Assets Economic resources, expected to benefit business in future
Questions And Answers 100% Correct
Creditor Any person or business to whom a business owes money
Certified Public Accountant (CPA) Licensed professional accountants who serve the
general public.
Certified Management Accountant (CMA) Certified professionals who specialize in
accounting and financial management knowledge. They typically work for a single company.
Financial Accounting Standards Board (FASB) Privately funded organization, oversees
the creation and governance of accounting standards
Security and Exchange Commission (SEC) U.S. governmental agency that oversees the
U.S. financial markets.
FASB and SEC Work Together
, Accounting 2301 UTA Exam 1
Questions And Answers 100% Correct
Generally Accepted Accounting Principles (GAAP) Accounting guidelines, formulated by
the FASB, the main U.S accounting rulebook
Economic Entity Assumption Organization that stands apart as a separate economic unit
Sole Proprietorship A business owned by one person
Partnership A business with two or more owners and not organized as a corporation
Corporation A business organized under state law that is a separate legal entity.
Limited Liability Company (LLC) A company in which each member is only liable for his
or her own actions.
Stockholders A person who owns stock in a corporation
, Accounting 2301 UTA Exam 1
Questions And Answers 100% Correct
Cost Principle States that acquired assets and services should be recorded at their actual
cost
Going Concern Assumption Assumes that the entity will remain in operation for the
foreseeable future.
Monetary Unit Assumption Accountants assume that the dollar is the most effective
means to communicate economic activity, its most stable.
International Financial Reporting Standards (IFRS) Accounting standards, issued by the
IASB, that have been adopted by many countries outside of the United States.
Accounting Equation Assets = Liabilities + Equity
Assets Economic resources, expected to benefit business in future
