ACC 406 Quiz 1 || Questions and Correct Detailed Answers.
What is the purpose of accounting? correct answers The purpose is to decide which events to
capture data, what data relating to each event should be captured, how the data is to be captured
while preventing input errors, how the data should be stored to optimize its usability while
maintaining its intefrity, and how meaningful reports can be generated on demand in real time.
Accounting involves processing raw data into what? correct answers Information that can be
comunicated to interested parties
Processed raw data is then communicated to whom? correct answers Interested Parties
Financial reports serve as what? correct answers Information Outputs
Basic accounting classes cover what types of accounting model? correct answers Double Entry
Accounting Model
Who is credited with developing this model? correct answers Franciscan Monk Luca Pacioli
What year did he develop it? correct answers 1494
The basic accounting model focuses on what? correct answers financial and most easily
measurable
What are the two types of information customers? correct answers internal or external
Internal customers work where? correct answers employees of all levels
, Meeting internal information needs has been the domain of what? correct answers Management
accounting
The IMA stands for what? correct answers Institue of management accounting
Investors and stockholders are what type of information customers? correct answers External
What does GAAP stand for? correct answers Generally Accepted Accounting Principles
The accounting Equation states what? correct answers Assets = Stockholder Equity + Liabilities
Owner's Equity decreases when what occurs? correct answers dividends
What is the starting point for the accounting process? correct answers The Transaction
What is purpose of special journals? correct answers simplify the tasks of recording.
What are some examples of transactions that would be placed in a special journal? correct
answers Sales, Purchases, cash receipts and cash disbursements
Define journals. correct answers Temporary stores of transaction information
Define ledgers. correct answers Holds all other accounts including summary accounts
Are ledgers or journals "closed out" at the end of each accounting period? correct answers
Journals
What is the purpose of accounting? correct answers The purpose is to decide which events to
capture data, what data relating to each event should be captured, how the data is to be captured
while preventing input errors, how the data should be stored to optimize its usability while
maintaining its intefrity, and how meaningful reports can be generated on demand in real time.
Accounting involves processing raw data into what? correct answers Information that can be
comunicated to interested parties
Processed raw data is then communicated to whom? correct answers Interested Parties
Financial reports serve as what? correct answers Information Outputs
Basic accounting classes cover what types of accounting model? correct answers Double Entry
Accounting Model
Who is credited with developing this model? correct answers Franciscan Monk Luca Pacioli
What year did he develop it? correct answers 1494
The basic accounting model focuses on what? correct answers financial and most easily
measurable
What are the two types of information customers? correct answers internal or external
Internal customers work where? correct answers employees of all levels
, Meeting internal information needs has been the domain of what? correct answers Management
accounting
The IMA stands for what? correct answers Institue of management accounting
Investors and stockholders are what type of information customers? correct answers External
What does GAAP stand for? correct answers Generally Accepted Accounting Principles
The accounting Equation states what? correct answers Assets = Stockholder Equity + Liabilities
Owner's Equity decreases when what occurs? correct answers dividends
What is the starting point for the accounting process? correct answers The Transaction
What is purpose of special journals? correct answers simplify the tasks of recording.
What are some examples of transactions that would be placed in a special journal? correct
answers Sales, Purchases, cash receipts and cash disbursements
Define journals. correct answers Temporary stores of transaction information
Define ledgers. correct answers Holds all other accounts including summary accounts
Are ledgers or journals "closed out" at the end of each accounting period? correct answers
Journals
