BUSINESS ACCOUNTING EXAM #1
QUESTIONS WITH CORRECT
ANSWERS
An independent group consisting of individuals from many countries that identify
preferred accounting practices - Answer-IASB
Prescribes that a company report the details behind financial statements that would
impact user decisions - Answer-Full disclosure orinciple
A report that identifies cash receipts and cash payments over a period of time -
Answer-Statement of cash flows
A financial statement that lists cash inflows (receipts) and cash outflows (payments);
the cash flows are arranged by operating, investing, and financing activities -
Answer-Statement of cash flows
Happenings, such as changes in market value, that effect the accounting equation
and are reliably measures - Answer-Events
The principle that assumes transactions and events can be expressed in money
units - Answer-Monetary unit principle
The principle that requires a business to be accounted for separately from its owners
- Answer-Business entity principle
The principle that revenue is recorded when earned through providing goods or
services - Answer-Revenue recognition principle
The relation between a company's assets, liabilities, and equity - Answer-Accounting
equation
Describes a company's revenues and expenses along with the resulting net income
or loss over a period of time - Answer-Income statement
The cost of assets or services used to earn revenue - Answer-Expenses
Creditors claims on assets - Answer-Liabilities
Accounting is an information system that identifies,____, and ____ the economic
events if an organizafion. - Answer-Records, communicates
The mere recording of economic events is called ____, and is just one part of the
____ process. - Answer-Book keeping, accounting
The three major services rendered by a certified public accountant are ____, ____,
and management ____. - Answer-Auditing, taxation, consulting
QUESTIONS WITH CORRECT
ANSWERS
An independent group consisting of individuals from many countries that identify
preferred accounting practices - Answer-IASB
Prescribes that a company report the details behind financial statements that would
impact user decisions - Answer-Full disclosure orinciple
A report that identifies cash receipts and cash payments over a period of time -
Answer-Statement of cash flows
A financial statement that lists cash inflows (receipts) and cash outflows (payments);
the cash flows are arranged by operating, investing, and financing activities -
Answer-Statement of cash flows
Happenings, such as changes in market value, that effect the accounting equation
and are reliably measures - Answer-Events
The principle that assumes transactions and events can be expressed in money
units - Answer-Monetary unit principle
The principle that requires a business to be accounted for separately from its owners
- Answer-Business entity principle
The principle that revenue is recorded when earned through providing goods or
services - Answer-Revenue recognition principle
The relation between a company's assets, liabilities, and equity - Answer-Accounting
equation
Describes a company's revenues and expenses along with the resulting net income
or loss over a period of time - Answer-Income statement
The cost of assets or services used to earn revenue - Answer-Expenses
Creditors claims on assets - Answer-Liabilities
Accounting is an information system that identifies,____, and ____ the economic
events if an organizafion. - Answer-Records, communicates
The mere recording of economic events is called ____, and is just one part of the
____ process. - Answer-Book keeping, accounting
The three major services rendered by a certified public accountant are ____, ____,
and management ____. - Answer-Auditing, taxation, consulting
