Survey of Accounting Exam 1
Questions with Accurate Answers
Financial Accounting - ANSWERSfocused on the needs of external users
accounting info->investors->creditors->brokers
Managerial Accounting - ANSWERSfocused on the needs of internal users
accounting info->managers->employees->unions
What rules govern financial accounting - ANSWERSGAAP (Generally Accepted
Accounting Principles)
Assets= - ANSWERSLiabilities+Equity
Balance sheet - ANSWERSAssets=Liabilities+Equity
What are assets (examples) - ANSWERSCash, land, equipment, buildings
Equity= - ANSWERSRetained Earnings+Common Stock
Net Income= - ANSWERSRevenue-Expenses
Income Statement - ANSWERSNet Income=Revenue-Expenses
Permanent accounts - ANSWERSLiabilities, assets, equity
Track financial results from year to year
Temporary accounts - ANSWERSDividends, revenues, expenses
Track financial results for a limited period of time
Asset source - ANSWERSIncrease total assets, increase total claims
Asset exchange - ANSWERSIncrease one asset, decrease another asset
Asset use - ANSWERSDecrease total assets, decrease total claims
Revenue recognition - ANSWERSFormally recording an economic item or event in the
financial statements
Realization - ANSWERScollecting cash, generally from the sale of products or services
Accruals - ANSWERSReceivables
Questions with Accurate Answers
Financial Accounting - ANSWERSfocused on the needs of external users
accounting info->investors->creditors->brokers
Managerial Accounting - ANSWERSfocused on the needs of internal users
accounting info->managers->employees->unions
What rules govern financial accounting - ANSWERSGAAP (Generally Accepted
Accounting Principles)
Assets= - ANSWERSLiabilities+Equity
Balance sheet - ANSWERSAssets=Liabilities+Equity
What are assets (examples) - ANSWERSCash, land, equipment, buildings
Equity= - ANSWERSRetained Earnings+Common Stock
Net Income= - ANSWERSRevenue-Expenses
Income Statement - ANSWERSNet Income=Revenue-Expenses
Permanent accounts - ANSWERSLiabilities, assets, equity
Track financial results from year to year
Temporary accounts - ANSWERSDividends, revenues, expenses
Track financial results for a limited period of time
Asset source - ANSWERSIncrease total assets, increase total claims
Asset exchange - ANSWERSIncrease one asset, decrease another asset
Asset use - ANSWERSDecrease total assets, decrease total claims
Revenue recognition - ANSWERSFormally recording an economic item or event in the
financial statements
Realization - ANSWERScollecting cash, generally from the sale of products or services
Accruals - ANSWERSReceivables
