Business Accounting Exam 1 Question
and answers rated A+
What is the role of accounting is business? - correct answer Identifying,
recording and communicate
Who are the main two types of users of accounting information - correct
answer External and Internal Users
external users type of accounting information - correct answer financial
accounting which provides external users with financial statements
Internal users type of accounting information - correct answer Managerial
accounting which provides information needs for internal decision-makers
What is business fraud? - correct answer Business fraud is a lack of ethics
which is a failure of individual character.
A. What is Sarbanes-Oxley and how does it affect management? - correct
answer Is a law placed with the purpose of restoring the publics confidence
and trust in the financial statements of a company.
What is GAAP - correct answer Generally Accepted Accounting Principles
? What are the 3 criteria for all accounting information created by GAAP? -
correct answer The three criteria are relevant information, reliable information
and comparable information.
, Principles and Assumptions of Accounting - correct answer Measurement
(cost) principle
Revenue Recognition Principle
Matching principle
Full Disclosure Principle
Going-concern assumption
Monetary Unit assumption
Time-period assumption
Business entity assumption
Measurement/Cost Principle - correct answer Objective evidence must be
used (not opinion) cost is market driven.
Revenue Recognition Principle - correct answer Record revenue when goods
or services are provided to customer at the amount expected to be received.
Matching Principle - correct answer See what expenses incurred to generate
that revenue and record that as well.
Full Disclosure Principle - correct answer A company must report details
behind the financial statement that would impact a user's decisions. Must tell
the whole truth.
Going-concern assumption - correct answer There is a presumption that the
business will continue operating instead of being closed or sold.
Monetary Unit Assumption - correct answer Principle that assumes
transactions and events can be expressed in money units.
and answers rated A+
What is the role of accounting is business? - correct answer Identifying,
recording and communicate
Who are the main two types of users of accounting information - correct
answer External and Internal Users
external users type of accounting information - correct answer financial
accounting which provides external users with financial statements
Internal users type of accounting information - correct answer Managerial
accounting which provides information needs for internal decision-makers
What is business fraud? - correct answer Business fraud is a lack of ethics
which is a failure of individual character.
A. What is Sarbanes-Oxley and how does it affect management? - correct
answer Is a law placed with the purpose of restoring the publics confidence
and trust in the financial statements of a company.
What is GAAP - correct answer Generally Accepted Accounting Principles
? What are the 3 criteria for all accounting information created by GAAP? -
correct answer The three criteria are relevant information, reliable information
and comparable information.
, Principles and Assumptions of Accounting - correct answer Measurement
(cost) principle
Revenue Recognition Principle
Matching principle
Full Disclosure Principle
Going-concern assumption
Monetary Unit assumption
Time-period assumption
Business entity assumption
Measurement/Cost Principle - correct answer Objective evidence must be
used (not opinion) cost is market driven.
Revenue Recognition Principle - correct answer Record revenue when goods
or services are provided to customer at the amount expected to be received.
Matching Principle - correct answer See what expenses incurred to generate
that revenue and record that as well.
Full Disclosure Principle - correct answer A company must report details
behind the financial statement that would impact a user's decisions. Must tell
the whole truth.
Going-concern assumption - correct answer There is a presumption that the
business will continue operating instead of being closed or sold.
Monetary Unit Assumption - correct answer Principle that assumes
transactions and events can be expressed in money units.
