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SOLUTION MANUAL FOR FINANCIAL ACCOUNTING TEST PAPER QUESTIONS ANSWERS COMPLETE SOLUTION DETAILED REVIEW SHEET

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SOLUTION MANUAL FOR FINANCIAL ACCOUNTING TEST PAPER QUESTIONS ANSWERS COMPLETE SOLUTION DETAILED REVIEW SHEET

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SOLUTION MANUAL FOR FINANCIAL
ACCOUNTING TEST PAPER QUESTIONS
ANSWERS COMPLETE SOLUTION
DETAILED REVIEW SHEET

●● Financial Accounting
Answer: Info provided for external users.


●● Primary Function of Financial Accounting
Answer: Measure Business Activities.


Communicate measurements for decision making.


●● Framework for Financial Accounting
Answer: 1. Investors/Creditors make decisions about companies and


2. That activity is measured by accountants who


3. Communicate that information to investors and creditors.


●● Sole Proprietorship

, Answer: Business owned by one person.


●● Partnership
Answer: Business owned by two or more persons.


●● Corporation
Answer: Business legally seperate from its owners.


●● Financing Activities
Answer: Transactions the companies has with investors and creditors.


●● Investing Activities
Answer: Transactions involving the purchase and sale of resources that
provide benefit for several years.


●● Operating Activities
Answer: Transactions that relate to the primary operations of the
company.


●● Basic Accounting Equation
Answer: Assets (Resources) = Liabilities (Creditors Claims) -
Stockholders Equity (owners' claims)

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