ACCOUNTING CRASH COURSE EXAM 2026
FINAL PAPER COMPLETE SOLVED QUESTIONS
PRACTICE REVISION PACK EXPERT ANSWERS
40 ITEMS
◉ accounting consists of 3 basic activities.
Answer: 1. IDENTIFYING economic events relevant to business
2. RECORDING those events to provide a history of financial activity
3. COMMUNICATING information to interested users
◉ Who uses accounting data?.
Answer: internal and external users
--we only studied external
◉ who are external users.
Answer: investors, creditors, regulators
◉ objective of financial accounting.
Answer: to provide financial information about an entity that is
useful to present and potential investors and creditors in decisions
about providing resources to the entity
,----simple: provide useful info to externals so they can make
informed decisions about the company
◉ Capital Allocation.
Answer: the process of determining how and at what cost the money
is allocated among competing interests
◉ Business Entities.
Answer: sole proprietorship, partnership, corporation
◉ non-business entities.
Answer: Government, charities, education, non-profit organizations
◉ GAAP.
Answer: Generally Accepted Accounting Principles
-standards about how to measure and report economic events in the
US
◉ who makes the rules?.
Answer: SEC, FASB, IASB
◉ SEC.
, Answer: securities and exchange commission
-US governmental agency overseeing the US markets
◉ FASB.
Answer: Financial Accounting Standards Board
-primary standard setter in US
◉ IASB.
Answer: International Accounting Standards Board
◉ historical cost.
Answer: Financial elements are measured based on their cost
◉ fair value.
Answer: Financial elements are measured based on what they are
worth
◉ accounting equation!!!!.
Answer: Assets = Liabilities + Equity
◉ assets.
Answer: resources a business owns/controls
FINAL PAPER COMPLETE SOLVED QUESTIONS
PRACTICE REVISION PACK EXPERT ANSWERS
40 ITEMS
◉ accounting consists of 3 basic activities.
Answer: 1. IDENTIFYING economic events relevant to business
2. RECORDING those events to provide a history of financial activity
3. COMMUNICATING information to interested users
◉ Who uses accounting data?.
Answer: internal and external users
--we only studied external
◉ who are external users.
Answer: investors, creditors, regulators
◉ objective of financial accounting.
Answer: to provide financial information about an entity that is
useful to present and potential investors and creditors in decisions
about providing resources to the entity
,----simple: provide useful info to externals so they can make
informed decisions about the company
◉ Capital Allocation.
Answer: the process of determining how and at what cost the money
is allocated among competing interests
◉ Business Entities.
Answer: sole proprietorship, partnership, corporation
◉ non-business entities.
Answer: Government, charities, education, non-profit organizations
◉ GAAP.
Answer: Generally Accepted Accounting Principles
-standards about how to measure and report economic events in the
US
◉ who makes the rules?.
Answer: SEC, FASB, IASB
◉ SEC.
, Answer: securities and exchange commission
-US governmental agency overseeing the US markets
◉ FASB.
Answer: Financial Accounting Standards Board
-primary standard setter in US
◉ IASB.
Answer: International Accounting Standards Board
◉ historical cost.
Answer: Financial elements are measured based on their cost
◉ fair value.
Answer: Financial elements are measured based on what they are
worth
◉ accounting equation!!!!.
Answer: Assets = Liabilities + Equity
◉ assets.
Answer: resources a business owns/controls
