Accounting Principles Final Exam
comprehensive Questions and Answers
with Verified Solutions
Question 1:
The process of recording, summarizing, and analyzing financial
transactions
Answer:
Accounting
Question 2:
Designed primarily for decision makers outside the company
Answer:
Financial Accounting
Question 3:
Designed primarily for decision makers within the company
Answer:
Managerial Accounting
Question 4:
business is owned by one person
Answer:
sole proprietorship
,Question 5:
voluntary association of two or more persons for the purpose of
conducting a business
Answer:
partnership
Question 6:
business is legally separated from its owners. The owners are the
stockholders and they have limited liability.
Answer:
Corporation
Question 7:
Nonowner claims on assets Liabilities
Answer:
Question 8:
Owner claims on assets
Answer:
Equity
Question 9:
Activities that consist of acquiring and disposing of resources (assets)
that a company uses to produce and
Answer:
Investing Activities
, Question 10:
Resources used quickly such as inventory
Answer:
Short-term Assets
Question 11:
Resources used over longer periods of time, such as equipment
Answer:
Long-Term Assets
Question 12:
Activities that include the production, promotion, and selling of a
company's products and services
Answer:
Operating activities
Question 13:
Increase in equity resulting from the sale of goods and services
Answer:
Revenues
Question 14:
transactions that company has with investors and creditors
Answer:
Financing activties
comprehensive Questions and Answers
with Verified Solutions
Question 1:
The process of recording, summarizing, and analyzing financial
transactions
Answer:
Accounting
Question 2:
Designed primarily for decision makers outside the company
Answer:
Financial Accounting
Question 3:
Designed primarily for decision makers within the company
Answer:
Managerial Accounting
Question 4:
business is owned by one person
Answer:
sole proprietorship
,Question 5:
voluntary association of two or more persons for the purpose of
conducting a business
Answer:
partnership
Question 6:
business is legally separated from its owners. The owners are the
stockholders and they have limited liability.
Answer:
Corporation
Question 7:
Nonowner claims on assets Liabilities
Answer:
Question 8:
Owner claims on assets
Answer:
Equity
Question 9:
Activities that consist of acquiring and disposing of resources (assets)
that a company uses to produce and
Answer:
Investing Activities
, Question 10:
Resources used quickly such as inventory
Answer:
Short-term Assets
Question 11:
Resources used over longer periods of time, such as equipment
Answer:
Long-Term Assets
Question 12:
Activities that include the production, promotion, and selling of a
company's products and services
Answer:
Operating activities
Question 13:
Increase in equity resulting from the sale of goods and services
Answer:
Revenues
Question 14:
transactions that company has with investors and creditors
Answer:
Financing activties
