Accounting test questions and answers 2023/2024

Accounting test questions and answers 2023/2024 The two main qualities of accounting are - ANSWER-Relevance and reliability The largest organization of professional accountants - ANSWER-AICPA The FASB is responsible for establishing - ANSWER-GAAP The owners interest in the assets of a corporation - ANSWER-Stockholders equity Stockholders equity increases as a result of - ANSWER-owner investments, and net income during a period The term double entry accounting indicates that the accountant - ANSWER-uses at least two accounts to record a transaction, two columns to record changes in each account when a company receives cash for issuing stock - ANSWER-increases assets and increases equity When a company performs services for a company on account the transaction: - ANSWER-increases assets and increases revenues what is not a component of stockholders equity - ANSWER-Accounts Payable Accounting transactions are originally recorded in the - ANSWER-journal or database the process of posting in traditional bookkeeping - ANSWER-transferring data from the journal to the ledger