Acct. Exam 1 Questions & Answers 2023/2024

Acct. Exam 1 Questions & Answers 2023/2024 Financial Statements Required by GAAP - ANSWER--Balance Sheet -Income Statement -Statement of Cash Flows -Statement of Changes in Stock Equity Who is the audience of Financial Accounting? - ANSWER-Focuses on the needs of external users -Investors -Creditors -Brokers List of Transactions on Balance Sheet - ANSWER--Asset Source (+,+) - borrowing money from a bank -Asset Exchange (- cash, + supplies)-buy equipment for $ -Asset Use (-,-) - pay $ off of the debt in part 1) -Claims Exchange (liabilities+, SE -) - recording in $ in salaries owed to employees. What is the matching principle/concept? - ANSWER-Practice of pairing revenues with expenses on Income Statement: Rev-Exp=N.I. What is Revenue? - ANSWER-The economic benefit a company derives from providing goods and services to its customers (charges for goods & services) What is GAAP? - ANSWER-Generally Accepted Accounting Principles -measurement rules established by the FASB (financial accounting standards board)