CSCC ACCOUNTING 1212 1
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ What are the rules of accounting?.
Answer: The rules of accounting are known as Generally Accepted
Accounting Principles (GAAP), which are created by the Financial
Accounting Standards Board (FASB).
◍ What are the two functions of accounting?.
Answer: To measure business activities To communicate information to
decision makers
◍ What is the economic entity assumption?.
Answer: The economic entity assumption states that the transactions of a
business must be kept separate from the personal transactions of its owners.
◍ What are the two types of Accounting.
Answer: Managerial accounting- inside the companyFinancial Accounting-
outside the company
◍ What are the three types of business forms?.
Answer: Corporation Sole Proprietors Partnership-business
◍ What is revenue recognition?.
Answer: Revenue recognition is the accounting principle that dictates when
revenue should be recognized in the financial statements, typically when it
is earned and realizable.
◍ What is expense recognition?.
Answer: Expense recognition is the principle that expenses should be
, recognized in the same period as the revenues they help to generate.
◍ What are cost principles?.
Answer: Cost principles state that assets should be recorded at their cost at
the time of acquisition, and this cost should be used for financial reporting.
◍ What does accounting measure?.
Answer: Financing/ Investing/ Operating
◍ What does financing activities include?.
Answer: transactions the company has with stockholders/investors/lendors/
and creditors
◍ What does investing activities include?.
Answer: transactions to purchase and sell long-term resources
◍ What are the differences between corporations, partnerships, and sole
proprietorships?.
Answer: Corporations are separate legal entities that provide limited liability
to their owners, partnerships involve two or more individuals sharing profits
and liabilities, and sole proprietorships are owned by a single individual
who is personally liable for business debts.
◍ assets.
Answer: resources owned by company
◍ What is the accounting equation?.
Answer: The accounting equation is Assets = Liabilities + Equity, which
represents the relationship between a company's resources and the claims
against those resources.
◍ Liabilities.
Answer: lenders/ creditors claim to resources
◍ Stockholders Equity.
Answer: owners claim to the resources
◍ What does operating activities include.
Answer: transactions where the company provides products or services to
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ What are the rules of accounting?.
Answer: The rules of accounting are known as Generally Accepted
Accounting Principles (GAAP), which are created by the Financial
Accounting Standards Board (FASB).
◍ What are the two functions of accounting?.
Answer: To measure business activities To communicate information to
decision makers
◍ What is the economic entity assumption?.
Answer: The economic entity assumption states that the transactions of a
business must be kept separate from the personal transactions of its owners.
◍ What are the two types of Accounting.
Answer: Managerial accounting- inside the companyFinancial Accounting-
outside the company
◍ What are the three types of business forms?.
Answer: Corporation Sole Proprietors Partnership-business
◍ What is revenue recognition?.
Answer: Revenue recognition is the accounting principle that dictates when
revenue should be recognized in the financial statements, typically when it
is earned and realizable.
◍ What is expense recognition?.
Answer: Expense recognition is the principle that expenses should be
, recognized in the same period as the revenues they help to generate.
◍ What are cost principles?.
Answer: Cost principles state that assets should be recorded at their cost at
the time of acquisition, and this cost should be used for financial reporting.
◍ What does accounting measure?.
Answer: Financing/ Investing/ Operating
◍ What does financing activities include?.
Answer: transactions the company has with stockholders/investors/lendors/
and creditors
◍ What does investing activities include?.
Answer: transactions to purchase and sell long-term resources
◍ What are the differences between corporations, partnerships, and sole
proprietorships?.
Answer: Corporations are separate legal entities that provide limited liability
to their owners, partnerships involve two or more individuals sharing profits
and liabilities, and sole proprietorships are owned by a single individual
who is personally liable for business debts.
◍ assets.
Answer: resources owned by company
◍ What is the accounting equation?.
Answer: The accounting equation is Assets = Liabilities + Equity, which
represents the relationship between a company's resources and the claims
against those resources.
◍ Liabilities.
Answer: lenders/ creditors claim to resources
◍ Stockholders Equity.
Answer: owners claim to the resources
◍ What does operating activities include.
Answer: transactions where the company provides products or services to
