ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
Accounting - ANSWER the recording of the day-to-day financial activities of a
company and the organization of that information into summary reports used to evaluate
the company's financial status
Bookkeeping - ANSWER the preservation of a systematic, quantitative record of an
activity
accounting system - ANSWER used by a business to handle routine bookkeeping
tasks and to structure the information so it can be used to evaluate the performance and
financial status of the business
Accounting information - ANSWER Info that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows -
ANSWER What are the three primary financial statements?
External Users - ANSWER Who is financial accounting information primarily
prepared for and used by?
Managerial Accounting - ANSWER the name given to accounting systems designed
for internal users
1
, Balance Sheet - ANSWER Reports a company's assets, liabilities, and owners' equity
Income Statement - ANSWER reports the amount of net income earned by a
company during a period
Net income - ANSWER the excess of a company's revenues over its expenses
statement of cash flows - ANSWER reports the amount of cash collected and paid
out by a company in the following three types of activities: operating, investing, and
financing
FASB - ANSWER Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - ANSWER a private body established
and supported by the joint efforts of the U.S. business community, financial analysts, and
practicing accountants
The Securities and Exchange Commission (SEC) - ANSWER the organization that
regulates U.S. stock exchanges and seeks to create a fair information environment in which
investors can buy and sell stocks without fear that companies are hiding or manipulating
financial data
American Institute of Certified Public Accountants (AICPA) - ANSWER the
professional organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - ANSWER the organization
that inspects the audit practices of registered audit firms and has statutory authority to
investigate questionable audit practices and to impose sanctions such as barring an audit
firm from auditing SEC-registered companies
2
Accounting - ANSWER the recording of the day-to-day financial activities of a
company and the organization of that information into summary reports used to evaluate
the company's financial status
Bookkeeping - ANSWER the preservation of a systematic, quantitative record of an
activity
accounting system - ANSWER used by a business to handle routine bookkeeping
tasks and to structure the information so it can be used to evaluate the performance and
financial status of the business
Accounting information - ANSWER Info that is intended to be useful in making
decisions about the future.
The balance sheet, the income statement, and the statement of cashflows -
ANSWER What are the three primary financial statements?
External Users - ANSWER Who is financial accounting information primarily
prepared for and used by?
Managerial Accounting - ANSWER the name given to accounting systems designed
for internal users
1
, Balance Sheet - ANSWER Reports a company's assets, liabilities, and owners' equity
Income Statement - ANSWER reports the amount of net income earned by a
company during a period
Net income - ANSWER the excess of a company's revenues over its expenses
statement of cash flows - ANSWER reports the amount of cash collected and paid
out by a company in the following three types of activities: operating, investing, and
financing
FASB - ANSWER Which private body establishes accounting rules in the U.S.?
Financial Accounting Standards Board (FASB) - ANSWER a private body established
and supported by the joint efforts of the U.S. business community, financial analysts, and
practicing accountants
The Securities and Exchange Commission (SEC) - ANSWER the organization that
regulates U.S. stock exchanges and seeks to create a fair information environment in which
investors can buy and sell stocks without fear that companies are hiding or manipulating
financial data
American Institute of Certified Public Accountants (AICPA) - ANSWER the
professional organization of certified public accountants (CPAs) in the United States
Public Company Accounting Oversight Board (PCAOB) - ANSWER the organization
that inspects the audit practices of registered audit firms and has statutory authority to
investigate questionable audit practices and to impose sanctions such as barring an audit
firm from auditing SEC-registered companies
2
