SOLUTION MANUAL FOR FINANCIAL
ACCOUNTING TEST PAPER QUESTIONS
ANSWERS COMPLETE SOLUTION
DETAILED REVIEW SHEET
●● Financial Accounting
Answer: Info provided for external users.
●● Primary Function of Financial Accounting
Answer: Measure Business Activities.
Communicate measurements for decision making.
●● Framework for Financial Accounting
Answer: 1. Investors/Creditors make decisions about companies and
2. That activity is measured by accountants who
3. Communicate that information to investors and creditors.
●● Sole Proprietorship
, Answer: Business owned by one person.
●● Partnership
Answer: Business owned by two or more persons.
●● Corporation
Answer: Business legally seperate from its owners.
●● Financing Activities
Answer: Transactions the companies has with investors and creditors.
●● Investing Activities
Answer: Transactions involving the purchase and sale of resources that
provide benefit for several years.
●● Operating Activities
Answer: Transactions that relate to the primary operations of the
company.
●● Basic Accounting Equation
Answer: Assets (Resources) = Liabilities (Creditors Claims) -
Stockholders Equity (owners' claims)
ACCOUNTING TEST PAPER QUESTIONS
ANSWERS COMPLETE SOLUTION
DETAILED REVIEW SHEET
●● Financial Accounting
Answer: Info provided for external users.
●● Primary Function of Financial Accounting
Answer: Measure Business Activities.
Communicate measurements for decision making.
●● Framework for Financial Accounting
Answer: 1. Investors/Creditors make decisions about companies and
2. That activity is measured by accountants who
3. Communicate that information to investors and creditors.
●● Sole Proprietorship
, Answer: Business owned by one person.
●● Partnership
Answer: Business owned by two or more persons.
●● Corporation
Answer: Business legally seperate from its owners.
●● Financing Activities
Answer: Transactions the companies has with investors and creditors.
●● Investing Activities
Answer: Transactions involving the purchase and sale of resources that
provide benefit for several years.
●● Operating Activities
Answer: Transactions that relate to the primary operations of the
company.
●● Basic Accounting Equation
Answer: Assets (Resources) = Liabilities (Creditors Claims) -
Stockholders Equity (owners' claims)
