Accounting I Final Exam (2026/2027) WITH
WELL DETAILED ANSWERS ALREADY
GRADED A+
GAAP (generally accepted accounting principles) - ANSWERS-Financial
accounting is governed by concepts & rules.
1. Relevant info affects decision of user
2. Reliable info trusted by users
3. Comparable info aids in contrasting organizations
SEC- Securities and Exchange Commission - ANSWERS-Federal agency
congress has charged to set reporting rules for org that sell ownership
shares to public
FASB (Financial Accounting Standards Board) - ANSWERS-Independent
group of full-time members responsible for setting accounting rules
IASB (international accounting standards board) - ANSWERS-Group
that identifies preferred accounting practices & encourages global
acceptance; issues IFRS
Measurement/cost principle - ANSWERS-Accounting info based on
actual cost.
-if cash is given for a service, cost is measured by cash paid
, -if other is exchanged (car traded for truck), cost is measured as cash
value of what is given up or received
This ensure reliability, verifiability
Revenue Recognition Principle - ANSWERS-Recognition = recording
-happens when goods or services are provided to customers
-is recorded at the amount received
Expense Recognition Principle - ANSWERS-A company records the
expenses it incurred to generate revenue reported
Assets - ANSWERS-Things company owns & uses to generate revenue
Liabilities - ANSWERS-Amount that company owes
Equity - ANSWERS-Amount invested in company by owners; owners
claim no assets
Accounting equation - ANSWERS-Assets = liabilities + equity
Truism in business - ANSWERS-Company never receives greater than it
gives & never gives greater than it receives
4 Rules of debits & credits - ANSWERS-1. Debit amount received;
credit amount given up
WELL DETAILED ANSWERS ALREADY
GRADED A+
GAAP (generally accepted accounting principles) - ANSWERS-Financial
accounting is governed by concepts & rules.
1. Relevant info affects decision of user
2. Reliable info trusted by users
3. Comparable info aids in contrasting organizations
SEC- Securities and Exchange Commission - ANSWERS-Federal agency
congress has charged to set reporting rules for org that sell ownership
shares to public
FASB (Financial Accounting Standards Board) - ANSWERS-Independent
group of full-time members responsible for setting accounting rules
IASB (international accounting standards board) - ANSWERS-Group
that identifies preferred accounting practices & encourages global
acceptance; issues IFRS
Measurement/cost principle - ANSWERS-Accounting info based on
actual cost.
-if cash is given for a service, cost is measured by cash paid
, -if other is exchanged (car traded for truck), cost is measured as cash
value of what is given up or received
This ensure reliability, verifiability
Revenue Recognition Principle - ANSWERS-Recognition = recording
-happens when goods or services are provided to customers
-is recorded at the amount received
Expense Recognition Principle - ANSWERS-A company records the
expenses it incurred to generate revenue reported
Assets - ANSWERS-Things company owns & uses to generate revenue
Liabilities - ANSWERS-Amount that company owes
Equity - ANSWERS-Amount invested in company by owners; owners
claim no assets
Accounting equation - ANSWERS-Assets = liabilities + equity
Truism in business - ANSWERS-Company never receives greater than it
gives & never gives greater than it receives
4 Rules of debits & credits - ANSWERS-1. Debit amount received;
credit amount given up
