FAC 1502 UNIT 1 BASIC PRINCIPLES OF ACCOUNTING FINAL PAPER EXAM QUESTIONS

FAC 1502 UNIT 1 BASIC PRINCIPLES OF ACCOUNTING FINAL PAPER EXAM QUESTIONS
ACCURATE ANSWERS FULL SOLUTION




Question:
● accounting systems

Answer:
The branch of accounting that covers the review of a firm's entire information system, not just the
accounting system



Question:
● accrual basis accounting

Answer:
System of reporting revenues and expenses in the period in which they are considered to have been
earned or incurred, regardless of the actual time of collection or payment



Question:
● adjusting entries

Answer:
Entries required at the end of an accounting period to record internal adjustments of various
accounts due to the matching principle of accounting



Question:
● assets

Answer:
Resources available for use by the business - that is, anything owned by the business that has
monetary value

, Question:
● auditing

Answer:
The branch of accounting that examines a firm's financial statements and internal controls for the
purpose of expressing opinions regarding the financial statements



Question:
● balance sheet

Answer:
Statement of the financial position of the hospitality establishment on a given date, giving the
account balances for assets, liabilities, and ownership equity



Question:
● bookkeeping

Answer:
The recording and classification of transactions



Question:
● business entity principle

Answer:
An accounting principle that requires a business maintain its own set of records and accounts that
are separate from other financial interests of its owners



Question:
● cash basis accounting

Answer:
System of reporting revenues and expenses at the time they are collected or paid, respectively