ACCOUNTING EXAM 1 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Account Balance
Answer:
Difference between total debits and total credits (including the beginning
balance) for an account.
Question:
2. Accounting
Answer:
comprehensive system for collecting, analyzing, and communicating financial
information
Question:
3. Accounting Cycle
Answer:
for a given time period, the cycle of recording accounting data, adjusting the
accounts, preparing the financial statements, and closing the temporary accounts;
when one accounting cycle ends a new one begins
Question:
4. Accounting Event
Answer:
Economic occurrence that changes a company's assets, liabilities, or equity
Question:
5. Accounting Period
Answer:
Time span covered by the financial statements; normally one year, but may be a
quarter, month or some other time interval
Question:
6. Accrual
Answer:
Accounting recognition of revenue or expense in a period before cash is
exchanged
, Question:
7. Accrual Accounting
Answer:
Accounting system which recognizes revenues when earned and expenses when
incurred regardless of when the related cash is exchanged
Question:
8. Adverse Opinion
Answer:
Opinion issued by a certified public accountant that means one or more
departures from GAAP in a company's financial statements are so very material
the auditors believe the financial statements do not fairly represent the company's
status
Question:
9. Adjusting Entry
Answer:
Entry that updates account balances prior to preparing financial statements; a
bookkeeping tool. Adjusting entries never affect the Cash account
Question:
10. Allocations
Answer:
Recognizing expenses by systematically assigning the cost of an asset to periods
of use
Question:
11. American Institute of CPA's
Answer:
National association that serves the education and professional interests of
member of the public accounting profession; membership is voluntary
Question:
12. Annual Reports
Answer:
Document companies publish to provide information, including financial
statements, to stockholders
QUESTIONS AND CORRECT ANSWERS
Question:
1. Account Balance
Answer:
Difference between total debits and total credits (including the beginning
balance) for an account.
Question:
2. Accounting
Answer:
comprehensive system for collecting, analyzing, and communicating financial
information
Question:
3. Accounting Cycle
Answer:
for a given time period, the cycle of recording accounting data, adjusting the
accounts, preparing the financial statements, and closing the temporary accounts;
when one accounting cycle ends a new one begins
Question:
4. Accounting Event
Answer:
Economic occurrence that changes a company's assets, liabilities, or equity
Question:
5. Accounting Period
Answer:
Time span covered by the financial statements; normally one year, but may be a
quarter, month or some other time interval
Question:
6. Accrual
Answer:
Accounting recognition of revenue or expense in a period before cash is
exchanged
, Question:
7. Accrual Accounting
Answer:
Accounting system which recognizes revenues when earned and expenses when
incurred regardless of when the related cash is exchanged
Question:
8. Adverse Opinion
Answer:
Opinion issued by a certified public accountant that means one or more
departures from GAAP in a company's financial statements are so very material
the auditors believe the financial statements do not fairly represent the company's
status
Question:
9. Adjusting Entry
Answer:
Entry that updates account balances prior to preparing financial statements; a
bookkeeping tool. Adjusting entries never affect the Cash account
Question:
10. Allocations
Answer:
Recognizing expenses by systematically assigning the cost of an asset to periods
of use
Question:
11. American Institute of CPA's
Answer:
National association that serves the education and professional interests of
member of the public accounting profession; membership is voluntary
Question:
12. Annual Reports
Answer:
Document companies publish to provide information, including financial
statements, to stockholders
