D774 INTRODUCTION TO BUSINESS ACCOUNTING SECTION
1 LESSON 1 & 2 QUESTIONS WITH VERIFIED ACCURATE
ANSWERS
The world's earliest system of taxation was used in ___ somewhere around 3,000 BCE -
Answers - Egypt
Bartering - Answers - was the system used for most transactions until near the end of
the Middle Ages
Early monetary systems using __or __ currency first emerged in the Near East and
China - Answers - coins or paper
Europe and other parts of the world started using monetary systems more widely in
about the 12th or 13th century CE. In a monetary economy - Answers - some form of
money (gold, currencies such as the dinar in Iraq, etc.) Is used to trade for and buy
goods.
The Father of accounting - Answers - Luca Pacioli
What did Luca Pacioli develop? - Answers - a double-entry accounting system that
provided a systematic, quantitative record of activity
The key development in accounting in the last 500 years has been the use of
accounting data not just to keep track of transactions but to - Answers - evaluate the
performance and health of a business.
Another major development in the world of finance and accounting took place as part of
the - Answers - Industrial Revolution of the 18th century
From about 1760 to 1840, the development of machines led to - Answers - great
changes in agriculture, manufacturing, mining, and transportation, which had a major
impact on the social, cultural, and economic conditions of the world.
The Industrial Revolution brought the need for - Answers - increased amounts of
money, or capital, to buy and build bigger and better machinery and factories
Capital - Answers - Financial assets that an individual or organization uses for
investment or generating profit
His need for capital led to the development - Answers - of capital markets, including
stock exchanges such as the London and New York Stock Exchanges
, Investors wanted to know how a company performed in the past to determine whether -
Answers - an investment might generate returns in the future.
How would an investor know how a company performed in the past? - Answers -
accounting information
Accounting information, - Answers - specifically financial statements, is designed to
report a company's financial status and financial performance. These financial
statements are a direct output of a company's accounting system
To attract investors, a company's management needed to be able to - Answers -
demonstrate, through financial statements, how the company had performed in the past.
As companies competed for investor funds, the market for funds - Answers - grew more
competitive, and managers got more clever and more creative in portraying their
company's performance.
Following a period of rapid growth and speculation in the U.S. stock market, the world
experienced the - Answers - Great Wall Street Crash of 1929, also known as the Great
Crash, Crash of '29, or Black Tuesday. This "crash" began in October when share
prices on the New York Stock Exchange (NYSE) collapsed and lasted for several years
He stock market crash led to the - Answers - worldwide Great Depression, which lasted
from 1929 to 1941. It was the most devastating economic downturn in the history of the
United States and the world.
There were several reasons for the crash, including - Answers -
First, traders and even company owners simultaneously bought and sold their own
stocks to create the - Answers - illusion that there was significant interest in their stocks,
which resulted in overinflated stock prices.
"pump and dump" schemes - Answers - traders, dishonest business owners, and other
fraudsters typically spread false or misleading information to create a buying frenzy that
"pumped" up the price of a stock. Then, they "dumped" shares of the stock by selling
their own shares at the inflated prices, making a profit.
Companies and bankers who supported them provided dishonest information to the
public, including overly optimistic expectations about stocks. This created - Answers -
stock values that could not be supported by the values of the companies they
represented. Disclosures were often not honest, major risks were not disclosed, and
many disclosures significantly overstated what companies could practically accomplish.
The market crash and the Great Depression led Congress to - Answers - take action to
restore confidence in the financial markets, resulting in the 1933 and 1934 Securities
Acts.
1 LESSON 1 & 2 QUESTIONS WITH VERIFIED ACCURATE
ANSWERS
The world's earliest system of taxation was used in ___ somewhere around 3,000 BCE -
Answers - Egypt
Bartering - Answers - was the system used for most transactions until near the end of
the Middle Ages
Early monetary systems using __or __ currency first emerged in the Near East and
China - Answers - coins or paper
Europe and other parts of the world started using monetary systems more widely in
about the 12th or 13th century CE. In a monetary economy - Answers - some form of
money (gold, currencies such as the dinar in Iraq, etc.) Is used to trade for and buy
goods.
The Father of accounting - Answers - Luca Pacioli
What did Luca Pacioli develop? - Answers - a double-entry accounting system that
provided a systematic, quantitative record of activity
The key development in accounting in the last 500 years has been the use of
accounting data not just to keep track of transactions but to - Answers - evaluate the
performance and health of a business.
Another major development in the world of finance and accounting took place as part of
the - Answers - Industrial Revolution of the 18th century
From about 1760 to 1840, the development of machines led to - Answers - great
changes in agriculture, manufacturing, mining, and transportation, which had a major
impact on the social, cultural, and economic conditions of the world.
The Industrial Revolution brought the need for - Answers - increased amounts of
money, or capital, to buy and build bigger and better machinery and factories
Capital - Answers - Financial assets that an individual or organization uses for
investment or generating profit
His need for capital led to the development - Answers - of capital markets, including
stock exchanges such as the London and New York Stock Exchanges
, Investors wanted to know how a company performed in the past to determine whether -
Answers - an investment might generate returns in the future.
How would an investor know how a company performed in the past? - Answers -
accounting information
Accounting information, - Answers - specifically financial statements, is designed to
report a company's financial status and financial performance. These financial
statements are a direct output of a company's accounting system
To attract investors, a company's management needed to be able to - Answers -
demonstrate, through financial statements, how the company had performed in the past.
As companies competed for investor funds, the market for funds - Answers - grew more
competitive, and managers got more clever and more creative in portraying their
company's performance.
Following a period of rapid growth and speculation in the U.S. stock market, the world
experienced the - Answers - Great Wall Street Crash of 1929, also known as the Great
Crash, Crash of '29, or Black Tuesday. This "crash" began in October when share
prices on the New York Stock Exchange (NYSE) collapsed and lasted for several years
He stock market crash led to the - Answers - worldwide Great Depression, which lasted
from 1929 to 1941. It was the most devastating economic downturn in the history of the
United States and the world.
There were several reasons for the crash, including - Answers -
First, traders and even company owners simultaneously bought and sold their own
stocks to create the - Answers - illusion that there was significant interest in their stocks,
which resulted in overinflated stock prices.
"pump and dump" schemes - Answers - traders, dishonest business owners, and other
fraudsters typically spread false or misleading information to create a buying frenzy that
"pumped" up the price of a stock. Then, they "dumped" shares of the stock by selling
their own shares at the inflated prices, making a profit.
Companies and bankers who supported them provided dishonest information to the
public, including overly optimistic expectations about stocks. This created - Answers -
stock values that could not be supported by the values of the companies they
represented. Disclosures were often not honest, major risks were not disclosed, and
many disclosures significantly overstated what companies could practically accomplish.
The market crash and the Great Depression led Congress to - Answers - take action to
restore confidence in the financial markets, resulting in the 1933 and 1934 Securities
Acts.
