Accounting 231 - KSU - M. Woods
Final Question and answers already
passed 2025/2026
Risk Adverse - correct answer ✔reluctant to take chances
Risk Takers - correct answer ✔Open to taking chances
Internal Users of Accounting Information - correct answer ✔Employee of the business with the power
to influence decisions within the company
External Users of accounting information - correct answer ✔individual making decisions for their own
benefit
Historical Cost - correct answer ✔Nyx & Frank's Wildland Adventures has completed loan paperwork.
The bank reviews the company's asset valuation and notes that the fair market value of the resources is
$2 million dollars more than what the company originally paid for those resources. What accounting
concept is illustrated by Nyx & Frank's Wildland Adventures' paperwork?
False - correct answer ✔T/F - Rainy Day Books has two retail locations for buying and selling used
books. This business is a manufacturing business.
Corporation - correct answer ✔Harley Company has one owner with limited liability. Harley Company is
organized in what business form?
Internal User - correct answer ✔Paula works for the Securities and Exchange Commission. She is
reviewing the most recent quarterly filing made by Facebook to determine if they are in compliance.
From the SEC's viewpoint, Paula would likely be considered an ........ user of accounting information.
,Materiality and Complete - correct answer ✔Concepts Statement #8 tells accountants about the most
useful decision information. Enhancing Information Characteristics make up useful decision information.
Which of the following characteristics is not part of the Enhancing Information group?
Internal Auditor - correct answer ✔An accountant who has the training and authority to perform a
review of the financial records of only the company that they work for is called a/an:
Business - correct answer ✔Enterprise design to provide goods to users
Accounting - correct answer ✔Financial communication
not-for-profit - correct answer ✔objective to provide cultural, educational, societal, or religious beliefs.
for-profit - correct answer ✔objective is to create an influx of resources greater then the outflow of
resources
risk - correct answer ✔exposure to chance or unfavorable outcomes
AICPA - correct answer ✔the professional organization of certified public accountants
SEC - correct answer ✔Governmental organization granted the statutory authority to oversee financial
markets and accounting
FASB - correct answer ✔privately funded organization of accounting and business experts
business entity - correct answer ✔Casey Carlson, owner of Carlson Enterprises, maintains two checking
accounts - one for personal affairs, one for the business. What basic accounting concept does this
illustrate?
,False - correct answer ✔T/F - Buster's Welding repairs heavy construction equipment, specializing in
the repair and replacement of bulldozer blades and front loader buckets. This business would be
classified as a merchandising business.
Relevance - correct answer ✔Identify the correct qualitative characteristic of useful financial
information:
The information is capable of making a difference in the decision. This characteristic has three sub-
components, including predictive value.
Certified Public Accountant - correct answer ✔An accountant who has the legal authority to attest to
the fair presentation of information in the financial statements of any company is called a/an:
Relevance - correct answer ✔Identify the Key Component for each of these sub components
Confirmatory Value
Relevance - correct answer ✔Identify the Key Component for each of these sub components
Materiality
Faithful Representation - correct answer ✔Identify the Key Component for each of these sub
components
Neutrality
, Faithful Representation - correct answer ✔Identify the Key Component for each of these sub
components
Complete
Faithful Representation - correct answer ✔Identify the Key Component for each of these sub
components
Free-from error
Relevance - correct answer ✔Identify the Key Component for each of these sub components
Predictive Value
objective - correct answer ✔Safeguarding Assets is an Internal Control ..............
Procedure - correct answer ✔Physically Controlling Assets and Documents is an internal control ........
Preventative - correct answer ✔Physically Controlling Assets and Documents is an internal control ........
It is classified as a preventative or detective control
procedure - correct answer ✔Physically controlling assets and documents is an Internal Control ...........
Maintaining Adequate Documents and Records - correct answer ✔Special Orders are captured using a
different form than a standard order. This is to ensure that all aspects of the special order process are
Final Question and answers already
passed 2025/2026
Risk Adverse - correct answer ✔reluctant to take chances
Risk Takers - correct answer ✔Open to taking chances
Internal Users of Accounting Information - correct answer ✔Employee of the business with the power
to influence decisions within the company
External Users of accounting information - correct answer ✔individual making decisions for their own
benefit
Historical Cost - correct answer ✔Nyx & Frank's Wildland Adventures has completed loan paperwork.
The bank reviews the company's asset valuation and notes that the fair market value of the resources is
$2 million dollars more than what the company originally paid for those resources. What accounting
concept is illustrated by Nyx & Frank's Wildland Adventures' paperwork?
False - correct answer ✔T/F - Rainy Day Books has two retail locations for buying and selling used
books. This business is a manufacturing business.
Corporation - correct answer ✔Harley Company has one owner with limited liability. Harley Company is
organized in what business form?
Internal User - correct answer ✔Paula works for the Securities and Exchange Commission. She is
reviewing the most recent quarterly filing made by Facebook to determine if they are in compliance.
From the SEC's viewpoint, Paula would likely be considered an ........ user of accounting information.
,Materiality and Complete - correct answer ✔Concepts Statement #8 tells accountants about the most
useful decision information. Enhancing Information Characteristics make up useful decision information.
Which of the following characteristics is not part of the Enhancing Information group?
Internal Auditor - correct answer ✔An accountant who has the training and authority to perform a
review of the financial records of only the company that they work for is called a/an:
Business - correct answer ✔Enterprise design to provide goods to users
Accounting - correct answer ✔Financial communication
not-for-profit - correct answer ✔objective to provide cultural, educational, societal, or religious beliefs.
for-profit - correct answer ✔objective is to create an influx of resources greater then the outflow of
resources
risk - correct answer ✔exposure to chance or unfavorable outcomes
AICPA - correct answer ✔the professional organization of certified public accountants
SEC - correct answer ✔Governmental organization granted the statutory authority to oversee financial
markets and accounting
FASB - correct answer ✔privately funded organization of accounting and business experts
business entity - correct answer ✔Casey Carlson, owner of Carlson Enterprises, maintains two checking
accounts - one for personal affairs, one for the business. What basic accounting concept does this
illustrate?
,False - correct answer ✔T/F - Buster's Welding repairs heavy construction equipment, specializing in
the repair and replacement of bulldozer blades and front loader buckets. This business would be
classified as a merchandising business.
Relevance - correct answer ✔Identify the correct qualitative characteristic of useful financial
information:
The information is capable of making a difference in the decision. This characteristic has three sub-
components, including predictive value.
Certified Public Accountant - correct answer ✔An accountant who has the legal authority to attest to
the fair presentation of information in the financial statements of any company is called a/an:
Relevance - correct answer ✔Identify the Key Component for each of these sub components
Confirmatory Value
Relevance - correct answer ✔Identify the Key Component for each of these sub components
Materiality
Faithful Representation - correct answer ✔Identify the Key Component for each of these sub
components
Neutrality
, Faithful Representation - correct answer ✔Identify the Key Component for each of these sub
components
Complete
Faithful Representation - correct answer ✔Identify the Key Component for each of these sub
components
Free-from error
Relevance - correct answer ✔Identify the Key Component for each of these sub components
Predictive Value
objective - correct answer ✔Safeguarding Assets is an Internal Control ..............
Procedure - correct answer ✔Physically Controlling Assets and Documents is an internal control ........
Preventative - correct answer ✔Physically Controlling Assets and Documents is an internal control ........
It is classified as a preventative or detective control
procedure - correct answer ✔Physically controlling assets and documents is an Internal Control ...........
Maintaining Adequate Documents and Records - correct answer ✔Special Orders are captured using a
different form than a standard order. This is to ensure that all aspects of the special order process are
