ACTG 210 - Anderson Test 1
With Correct Answers
Financial Accounting - ANSWER Keeping the financial score for the entity
Follows GAAP
External users such as stockholders, bankers, lenders, creditors, vendors
Managerial Accounting - ANSWER Using accounting and non-accounting
information to make decisions
Follows Conventions (No GAAP)
Internal users such as people making decisions about costs
FASB - ANSWER Financial Accounting Standards Board
GAAP - ANSWER Generally Accepted Accounting Principles
Cost - ANSWER all costs are historical
Earned Revenue Recognition - ANSWER rendered goods and services
Recognized Revenue Service - ANSWER expectation of payment
Matching - ANSWER match expenses with revenue in the period they occur
Materiality - ANSWER if you knew the fact, it could change your mind; 5% of
something
Assets - ANSWER something of future economic value
Are all assets shown on the balance sheet? - ANSWER No. Assets must be
, objectively quantifiable to be recorded on the balance sheet
Liabilty - ANSWER something owed
Are all liabilities shown on the balance sheet? - ANSWER No. Liabilities must
be objectively quantifiable to be recorded on the balance sheet
Contingent Liability - ANSWER liability that cannot be objectively
quantifiable
Stockholder's Equity - ANSWER capital plus retained earnings
Capital - ANSWER investment by the stockholders
Retained Earnings - ANSWER earnings retained in the business
Ending RE - ANSWER Beginning RE plus NIAT minus Dividends
Dividend - ANSWER distribution of retained earnings to stockholders
Expense - ANSWER expired asset
Revenue - ANSWER rendered goods and/or services with the expectation of
payment
Chart of Accounts - ANSWER "Accountant's Bible" or "Index" - lists the
names and account numbers for all accounts
General Journal - ANSWER "Book of Original Entry" - shows the debits and
credits for each accounting transaction
General Ledger - ANSWER list of all transactions for the accounting period
sorted by account number
Debit - ANSWER entry on the left side of a general ledger account
With Correct Answers
Financial Accounting - ANSWER Keeping the financial score for the entity
Follows GAAP
External users such as stockholders, bankers, lenders, creditors, vendors
Managerial Accounting - ANSWER Using accounting and non-accounting
information to make decisions
Follows Conventions (No GAAP)
Internal users such as people making decisions about costs
FASB - ANSWER Financial Accounting Standards Board
GAAP - ANSWER Generally Accepted Accounting Principles
Cost - ANSWER all costs are historical
Earned Revenue Recognition - ANSWER rendered goods and services
Recognized Revenue Service - ANSWER expectation of payment
Matching - ANSWER match expenses with revenue in the period they occur
Materiality - ANSWER if you knew the fact, it could change your mind; 5% of
something
Assets - ANSWER something of future economic value
Are all assets shown on the balance sheet? - ANSWER No. Assets must be
, objectively quantifiable to be recorded on the balance sheet
Liabilty - ANSWER something owed
Are all liabilities shown on the balance sheet? - ANSWER No. Liabilities must
be objectively quantifiable to be recorded on the balance sheet
Contingent Liability - ANSWER liability that cannot be objectively
quantifiable
Stockholder's Equity - ANSWER capital plus retained earnings
Capital - ANSWER investment by the stockholders
Retained Earnings - ANSWER earnings retained in the business
Ending RE - ANSWER Beginning RE plus NIAT minus Dividends
Dividend - ANSWER distribution of retained earnings to stockholders
Expense - ANSWER expired asset
Revenue - ANSWER rendered goods and/or services with the expectation of
payment
Chart of Accounts - ANSWER "Accountant's Bible" or "Index" - lists the
names and account numbers for all accounts
General Journal - ANSWER "Book of Original Entry" - shows the debits and
credits for each accounting transaction
General Ledger - ANSWER list of all transactions for the accounting period
sorted by account number
Debit - ANSWER entry on the left side of a general ledger account
