ACCY 201 TEST 1 BURNEY EXAM PREP
STUDY GUIDE QUESTIONS ANSWERS
COMPLETE SOLUTION BUNDLE
●● External Users
Answer: Not directly involved in running an organization
●● Financial Accounting
Answer: Area of accounting aimed at serving external users
●● Internal Users
Answer: Directly involved in managing and and operating an
organization
●● Managerial Accounting
Answer: Area of accounting that serves decision-making needs of
internal users
●● Ethics
Answer: Key to accounting - beliefs that distinguish right from wrong
●● Fraud Triangle
Answer: Opportunity, Pressure, Rationalization
, ●● Measurement or Cost Principle
Answer: Based on the objective value of goods or services
●● Revenue Recognition Principle
Answer: Sales must be recorded as they are made
●● Expense Recognition Principle
Answer: Record the expenses incurred to generate revenue reported
●● Full Disclosure Principle
Answer: Company must report details behind financial statements
●● Accounting Assumptions (4)
Answer: 1. Going-Concern Assumption
2. Monetary Unit Assumption
3. Time Period Assumption
4. Business Entity Assumption
●● Going-Concern Assumption
Answer: Accounting information reflects presumption that a company
will continue operating
STUDY GUIDE QUESTIONS ANSWERS
COMPLETE SOLUTION BUNDLE
●● External Users
Answer: Not directly involved in running an organization
●● Financial Accounting
Answer: Area of accounting aimed at serving external users
●● Internal Users
Answer: Directly involved in managing and and operating an
organization
●● Managerial Accounting
Answer: Area of accounting that serves decision-making needs of
internal users
●● Ethics
Answer: Key to accounting - beliefs that distinguish right from wrong
●● Fraud Triangle
Answer: Opportunity, Pressure, Rationalization
, ●● Measurement or Cost Principle
Answer: Based on the objective value of goods or services
●● Revenue Recognition Principle
Answer: Sales must be recorded as they are made
●● Expense Recognition Principle
Answer: Record the expenses incurred to generate revenue reported
●● Full Disclosure Principle
Answer: Company must report details behind financial statements
●● Accounting Assumptions (4)
Answer: 1. Going-Concern Assumption
2. Monetary Unit Assumption
3. Time Period Assumption
4. Business Entity Assumption
●● Going-Concern Assumption
Answer: Accounting information reflects presumption that a company
will continue operating
