ACCT 105 Exam 1 || with Errorless Solutions 100%.
What is financial accounting? correct answers Providing information about the financial
resources, obligations, and activities of an economic entity that is intended for use primarily by
external decision makers- investors and creditors
What do accountants do today and why are they important? correct answers Prepare fin.
statements
Tax return preparation
Auditing business records and processes
Cost Savings
Who are the users of accounting information? correct answers Owners
Managers
Creditors
Government Agencies
Who are the users of financial accounting? correct answers external parties (shareholders,
investors, creditors, etc.)
What are the qualities of information? correct answers Relevance and faithful representation
What is the FASB correct answers Financial Accounting Standards Board- responsible for
establishing financial reporting standards in US
What is GAAP? correct answers Generally Accepted Accounting Principles- financial reporting
standards
What is the relationship between FASB and GAAP? correct answers FASB made GAAP
What is the IASB and the IFRS and how are they related? correct answers International
Accounting Standards Board
International Financial reporting standards.
IASB establishes IFRS
Why do we have GAAP? correct answers To ensure comparability and consistency
What is SEC, and SOX of 2002 and how are they related? correct answers Securities and
Exchange Commission.
SOX created SEC
What is financial accounting? correct answers Providing information about the financial
resources, obligations, and activities of an economic entity that is intended for use primarily by
external decision makers- investors and creditors
What do accountants do today and why are they important? correct answers Prepare fin.
statements
Tax return preparation
Auditing business records and processes
Cost Savings
Who are the users of accounting information? correct answers Owners
Managers
Creditors
Government Agencies
Who are the users of financial accounting? correct answers external parties (shareholders,
investors, creditors, etc.)
What are the qualities of information? correct answers Relevance and faithful representation
What is the FASB correct answers Financial Accounting Standards Board- responsible for
establishing financial reporting standards in US
What is GAAP? correct answers Generally Accepted Accounting Principles- financial reporting
standards
What is the relationship between FASB and GAAP? correct answers FASB made GAAP
What is the IASB and the IFRS and how are they related? correct answers International
Accounting Standards Board
International Financial reporting standards.
IASB establishes IFRS
Why do we have GAAP? correct answers To ensure comparability and consistency
What is SEC, and SOX of 2002 and how are they related? correct answers Securities and
Exchange Commission.
SOX created SEC
