Accoun tin g 101 Fin al Exam Study
Guide com plete ver ifi ed solution s +
r ation ales (PASS GUARANTEED)
What is accounting? - answer the action or process of keeping financial
accounts
revenues - answer inflows of assets resulting from the sale of goods and
services
expenses - answer outflow of assets resulting from the sale of goods
and services
internal user - answer managerial accounting
external user - answer financial accounting
who is responsible for GAAP - answer FASB
accounting equation - answer assets = liabilities + owners equity
,international accounting standards board (IFRS) is responsible for -
answer developing a single set of worldwide accounting standards
These standards will help companies to reduce accounting costs, make
it easier to acquire foreign companies, and facilitate comparisons
between foreign companies - answer (IFRS) international accounting
standards board
primary objective of financial reporting - answer provide economic
information to permit users of the information to make informed
decisions
what makes information relevant - answer it must be able to make a
difference in a decision
assets are recorded at historical/original cost because - answer it is
objective and verifiable
financial information should be understandable to whom - answer
those willing to spend the necessary time to understand it
balance sheet - answer lists assets, liabilities, and owner's equity
, income statement - answer revenues minus expenses equal net income
net income - answer revenues - expenses
order of statement preparation - answer income statement, statement
of retained earnings, balance sheet and statement of cash flows
account and types of accounts - answer a record or statement of
financial expenditure or receipts relating to a particular period or
purpose
real, personal, and nominal
how transactions affect the accounting equation - answer the balance is
maintained because every business transaction affects at least two of a
company's accounts such as:
when a company borrows money from a bank
the company's assets will increase and its liabilities will increase by the
same amount
left side - answer debit
Guide com plete ver ifi ed solution s +
r ation ales (PASS GUARANTEED)
What is accounting? - answer the action or process of keeping financial
accounts
revenues - answer inflows of assets resulting from the sale of goods and
services
expenses - answer outflow of assets resulting from the sale of goods
and services
internal user - answer managerial accounting
external user - answer financial accounting
who is responsible for GAAP - answer FASB
accounting equation - answer assets = liabilities + owners equity
,international accounting standards board (IFRS) is responsible for -
answer developing a single set of worldwide accounting standards
These standards will help companies to reduce accounting costs, make
it easier to acquire foreign companies, and facilitate comparisons
between foreign companies - answer (IFRS) international accounting
standards board
primary objective of financial reporting - answer provide economic
information to permit users of the information to make informed
decisions
what makes information relevant - answer it must be able to make a
difference in a decision
assets are recorded at historical/original cost because - answer it is
objective and verifiable
financial information should be understandable to whom - answer
those willing to spend the necessary time to understand it
balance sheet - answer lists assets, liabilities, and owner's equity
, income statement - answer revenues minus expenses equal net income
net income - answer revenues - expenses
order of statement preparation - answer income statement, statement
of retained earnings, balance sheet and statement of cash flows
account and types of accounts - answer a record or statement of
financial expenditure or receipts relating to a particular period or
purpose
real, personal, and nominal
how transactions affect the accounting equation - answer the balance is
maintained because every business transaction affects at least two of a
company's accounts such as:
when a company borrows money from a bank
the company's assets will increase and its liabilities will increase by the
same amount
left side - answer debit
