FAC2601 FINAL PAPER UPDATED
COMPLETE QUESTIONS AND CORRECT
ANSWERS BUNDLED REVIEW GUIDE
●● Financial Accounting
Answer: process that results in preparation and reporting of financial
statements for an entity.
●● Certified Public Accountant (CPA)
Answer: A professional designation earned by fulfilling certain
education and experience requirements, in addition to passing a
comprehensive, four-part examination.
●● Financial Accounting Standards Board (FASB)
Answer: The primary accounting standard-setting body in the United
States.
●● Transactions
Answer: Economic interchanges between entities that are accounted for
and reflected in financial statements.
●● Accounts
, Answer: used to organize transactions; record in which transactions
affecting assets, liabilities, stockholders' equity, revenue and expenses
are recorded.
●● Balance Sheet
Answer: presents financial position of entity at end of an accounting
period; point in time; both side must be equal.
●● Assets
Answer: resources owned by a business
●● Current Assets
Answer: items that can or will be converted into cash within one year;
cash, accounts receivable, inventory
●● long term assets
Answer: assets that are expected to be used in business operations for
longer than one year; building, land, equipment & Less: accumulated
depreciation
●● Liabilities
Answer: Amounts owed to creditors
●● Current Liabilities
COMPLETE QUESTIONS AND CORRECT
ANSWERS BUNDLED REVIEW GUIDE
●● Financial Accounting
Answer: process that results in preparation and reporting of financial
statements for an entity.
●● Certified Public Accountant (CPA)
Answer: A professional designation earned by fulfilling certain
education and experience requirements, in addition to passing a
comprehensive, four-part examination.
●● Financial Accounting Standards Board (FASB)
Answer: The primary accounting standard-setting body in the United
States.
●● Transactions
Answer: Economic interchanges between entities that are accounted for
and reflected in financial statements.
●● Accounts
, Answer: used to organize transactions; record in which transactions
affecting assets, liabilities, stockholders' equity, revenue and expenses
are recorded.
●● Balance Sheet
Answer: presents financial position of entity at end of an accounting
period; point in time; both side must be equal.
●● Assets
Answer: resources owned by a business
●● Current Assets
Answer: items that can or will be converted into cash within one year;
cash, accounts receivable, inventory
●● long term assets
Answer: assets that are expected to be used in business operations for
longer than one year; building, land, equipment & Less: accumulated
depreciation
●● Liabilities
Answer: Amounts owed to creditors
●● Current Liabilities
