UTA ACCOUNTING ENTRANCE
COMPREHENSIVE EXAMS SET TESTED
QUESTIONS AND CORRECT ANSWERS
●● Accounting Model
Answer: Start with economic activities (are reviewed), create useful
information (good decisions)
●● Managerial Accounting
Answer: Focuses on information for internal decision makers.
Ex. Company Managers and Employees
●● Financial Acounting
Answer: Provides information for external decision makers
Ex. Outside investors, Lenders, Customers, Federal Government
●● Businesses
Answer: Set goals, measure progress, make adjustment
●● Investors
Answer: Outside investors, provide money to get business going
,●● Creditor
Answer: Any person or business to whom a business owes money
●● Certified Public Accountant (CPA)
Answer: Licensed professional accountants who serve the general
public.
●● Certified Management Accountant (CMA)
Answer: Certified professionals who specialize in accounting and
financial management knowledge. They typically work for a single
company.
●● Financial Accounting Standards Board (FASB)
Answer: Privately funded organization, oversees the creation and
governance of accounting standards
●● Security and Exchange Commission (SEC)
Answer: U.S. governmental agency that oversees the U.S. financial
markets.
●● FASB and SEC
Answer: Work Together
, ●● Generally Accepted Accounting Principles (GAAP)
Answer: Accounting guidelines, formulated by the FASB, the main U.S
accounting rulebook
●● Economic Entity Assumption
Answer: Organization that stands apart as a separate economic unit
●● Sole Proprietorship
Answer: A business owned by one person
●● Partnership
Answer: A business with two or more owners and not organized as a
corporation
●● Corporation
Answer: A business organized under state law that is a separate legal
entity.
●● Limited Liability Company (LLC)
Answer: A company in which each member is only liable for his or her
own actions.
●● Stockholders
COMPREHENSIVE EXAMS SET TESTED
QUESTIONS AND CORRECT ANSWERS
●● Accounting Model
Answer: Start with economic activities (are reviewed), create useful
information (good decisions)
●● Managerial Accounting
Answer: Focuses on information for internal decision makers.
Ex. Company Managers and Employees
●● Financial Acounting
Answer: Provides information for external decision makers
Ex. Outside investors, Lenders, Customers, Federal Government
●● Businesses
Answer: Set goals, measure progress, make adjustment
●● Investors
Answer: Outside investors, provide money to get business going
,●● Creditor
Answer: Any person or business to whom a business owes money
●● Certified Public Accountant (CPA)
Answer: Licensed professional accountants who serve the general
public.
●● Certified Management Accountant (CMA)
Answer: Certified professionals who specialize in accounting and
financial management knowledge. They typically work for a single
company.
●● Financial Accounting Standards Board (FASB)
Answer: Privately funded organization, oversees the creation and
governance of accounting standards
●● Security and Exchange Commission (SEC)
Answer: U.S. governmental agency that oversees the U.S. financial
markets.
●● FASB and SEC
Answer: Work Together
, ●● Generally Accepted Accounting Principles (GAAP)
Answer: Accounting guidelines, formulated by the FASB, the main U.S
accounting rulebook
●● Economic Entity Assumption
Answer: Organization that stands apart as a separate economic unit
●● Sole Proprietorship
Answer: A business owned by one person
●● Partnership
Answer: A business with two or more owners and not organized as a
corporation
●● Corporation
Answer: A business organized under state law that is a separate legal
entity.
●● Limited Liability Company (LLC)
Answer: A company in which each member is only liable for his or her
own actions.
●● Stockholders
