SOLUTION MANUAL FOR FINANCIAL
ACCOUNTING ACTUAL TEST BANK
QUESTIONS SOLUTIONS GRADED A PLUS
PREMIUM STUDY RESOURCE
●● Booking/Book Keeping
Answer: The recording of economic events.
●● Identification
Answer: Analyzing the economic events relevant to a business.
●● Recording
Answer: Recording economic events in a systematic, chronological,
diary of events. Measured in dollars and cents.
●● Communication
Answer: Relaying information or accounting reports to interested users.
●● Internal Users
Answer: Users of financial information within a company/organization.
Examples:
- Finances
, - Marketing
- Management
- Human Resources
●● External Users
Answer: Users off financial information that are outside of the
company/organization.
Examples:
- Investors
- Creditors
●● GAAP
Answer: Generally Accepted Accounting Principles
●● Cost Principle (Historical Cost Principle)
Answer: Dictates that companies record assets at their cost at the time
the assets were purchased.
Example:
- "best buy purchases land at $360000, but by the end of the year the
value goes up to $400000. Best buy still declares it $360000 under the
HCP.
●● Fair Value Principle
ACCOUNTING ACTUAL TEST BANK
QUESTIONS SOLUTIONS GRADED A PLUS
PREMIUM STUDY RESOURCE
●● Booking/Book Keeping
Answer: The recording of economic events.
●● Identification
Answer: Analyzing the economic events relevant to a business.
●● Recording
Answer: Recording economic events in a systematic, chronological,
diary of events. Measured in dollars and cents.
●● Communication
Answer: Relaying information or accounting reports to interested users.
●● Internal Users
Answer: Users of financial information within a company/organization.
Examples:
- Finances
, - Marketing
- Management
- Human Resources
●● External Users
Answer: Users off financial information that are outside of the
company/organization.
Examples:
- Investors
- Creditors
●● GAAP
Answer: Generally Accepted Accounting Principles
●● Cost Principle (Historical Cost Principle)
Answer: Dictates that companies record assets at their cost at the time
the assets were purchased.
Example:
- "best buy purchases land at $360000, but by the end of the year the
value goes up to $400000. Best buy still declares it $360000 under the
HCP.
●● Fair Value Principle
