Ole Miss Accounting 201 Burney Test
1 Questions Fully Solved.
FASB (Financial Accounting Standards Board) - Answer The authoritative body that has the
primary responsibility for developing accounting principles.
SEC (Securities and Exchange Commission) - Answer The agency of the U.S. government that
oversees U.S. financial markets and accounting standard-setting bodies.
IASB (International Accounting Standards Board) - Answer organization that issues
International Financial Reporting Standards for many countries outside the United States
Bookkeeping - Answer Recording of transactions and events; only one part of accounting
External Users - Answer Not directly involved in running an organization
Financial Accounting - Answer Area of accounting aimed at serving external users
Internal Users - Answer Directly involved in managing and and operating an organization
Managerial Accounting - Answer Area of accounting that serves decision-making needs of
internal users
Ethics - Answer Key to accounting - beliefs that distinguish right from wrong
Fraud Triangle - Answer Opportunity, Pressure, Rationalization
Measurement or Cost Principle - Answer Based on the objective value of goods or services
Revenue Recognition Principle - Answer Sales must be recorded as they are made
Expense Recognition Principle - Answer Record the expenses incurred to generate revenue
reported
Full Disclosure Principle - Answer Company must report details behind financial statements
, Accounting Assumptions (4) - Answer 1. Going-Concern Assumption
2. Monetary Unit Assumption
3. Time Period Assumption
4. Business Entity Assumption
Going-Concern Assumption - Answer Accounting information reflects presumption that a
company will continue operating
Monetary Unit Assumption - Answer Express transactions in monetary units
Time Period Assumption - Answer Life of a company can be broken down into time periods
Business Entity Assumption - Answer Business is separate from its owner and and other
entities
Types of Businesses (3) - Answer 1. Sole Proprietorship
2. Partnership
3. Corporation
Sole Proprietorship - Answer One owner
Owner is taxed
Unlimited liability
Business is separate entity
Not a legal entity
Limited life
Partnership - Answer Multiple owners
Owners taxed
Unlimited Liability
Business is separate entity
Not a legal entity
Limited life
Corporation - Answer One owner allowed
Business is taxed
1 Questions Fully Solved.
FASB (Financial Accounting Standards Board) - Answer The authoritative body that has the
primary responsibility for developing accounting principles.
SEC (Securities and Exchange Commission) - Answer The agency of the U.S. government that
oversees U.S. financial markets and accounting standard-setting bodies.
IASB (International Accounting Standards Board) - Answer organization that issues
International Financial Reporting Standards for many countries outside the United States
Bookkeeping - Answer Recording of transactions and events; only one part of accounting
External Users - Answer Not directly involved in running an organization
Financial Accounting - Answer Area of accounting aimed at serving external users
Internal Users - Answer Directly involved in managing and and operating an organization
Managerial Accounting - Answer Area of accounting that serves decision-making needs of
internal users
Ethics - Answer Key to accounting - beliefs that distinguish right from wrong
Fraud Triangle - Answer Opportunity, Pressure, Rationalization
Measurement or Cost Principle - Answer Based on the objective value of goods or services
Revenue Recognition Principle - Answer Sales must be recorded as they are made
Expense Recognition Principle - Answer Record the expenses incurred to generate revenue
reported
Full Disclosure Principle - Answer Company must report details behind financial statements
, Accounting Assumptions (4) - Answer 1. Going-Concern Assumption
2. Monetary Unit Assumption
3. Time Period Assumption
4. Business Entity Assumption
Going-Concern Assumption - Answer Accounting information reflects presumption that a
company will continue operating
Monetary Unit Assumption - Answer Express transactions in monetary units
Time Period Assumption - Answer Life of a company can be broken down into time periods
Business Entity Assumption - Answer Business is separate from its owner and and other
entities
Types of Businesses (3) - Answer 1. Sole Proprietorship
2. Partnership
3. Corporation
Sole Proprietorship - Answer One owner
Owner is taxed
Unlimited liability
Business is separate entity
Not a legal entity
Limited life
Partnership - Answer Multiple owners
Owners taxed
Unlimited Liability
Business is separate entity
Not a legal entity
Limited life
Corporation - Answer One owner allowed
Business is taxed
