INTERMEDIATE ACCOUNTING 11TH EDITION
EXAM SCRIPT TESTED QUESTIONS AND
SOLUTIONS 100 PERCENT CORRECT
◉ Financial Accounting. Answer: The field of accounting that focuses
on providing information for external decision makers.
◉ Managerial Accounting. Answer: The field of accounting that
focuses on providing information for internal decision makers.
◉ Certified Management Accountants (CMAs). Answer: Certified
professionals who specialize in accounting and financial management
knowledge. They typically work for a single company.
◉ Certified Public Accountants (CPAs). Answer: Licensed
professional accountants who serve the general public.
◉ Creditor. Answer: Any person or business to whom a business owes
money.
◉ Corporation. Answer: A business organized under state law that is a
separate legal entity.
, ◉ Economic Entity Assumption. Answer: An organization that stands
apart as a separate economic unit.
◉ Financial Accounting Standards Board (FASB). Answer: The
private organization that oversees the creation and governance of
accounting standards in the United States.
◉ Generally Accepted Accounting Principles (GAAP). Answer:
Accounting guidelines, currently formulated by the Financial
Accounting Standards Board (FASB); the main U.S. accounting rule
book.
◉ Limited-Liability Company (LLC). Answer: A company in which
each member is only liable for his or her own actions.
◉ Partnership. Answer: A business with two or more owners that is
not organized as a corporation.
◉ Securities and Exchange Commission (SEC). Answer: U.S.
governmental agency that oversees the U.S. financial markets.
◉ Sole Proprietorship. Answer: A business with a single owner.
◉ Cost Principle. Answer: A principle that states that acquired assets
and services should be recorded at their actual cost.
EXAM SCRIPT TESTED QUESTIONS AND
SOLUTIONS 100 PERCENT CORRECT
◉ Financial Accounting. Answer: The field of accounting that focuses
on providing information for external decision makers.
◉ Managerial Accounting. Answer: The field of accounting that
focuses on providing information for internal decision makers.
◉ Certified Management Accountants (CMAs). Answer: Certified
professionals who specialize in accounting and financial management
knowledge. They typically work for a single company.
◉ Certified Public Accountants (CPAs). Answer: Licensed
professional accountants who serve the general public.
◉ Creditor. Answer: Any person or business to whom a business owes
money.
◉ Corporation. Answer: A business organized under state law that is a
separate legal entity.
, ◉ Economic Entity Assumption. Answer: An organization that stands
apart as a separate economic unit.
◉ Financial Accounting Standards Board (FASB). Answer: The
private organization that oversees the creation and governance of
accounting standards in the United States.
◉ Generally Accepted Accounting Principles (GAAP). Answer:
Accounting guidelines, currently formulated by the Financial
Accounting Standards Board (FASB); the main U.S. accounting rule
book.
◉ Limited-Liability Company (LLC). Answer: A company in which
each member is only liable for his or her own actions.
◉ Partnership. Answer: A business with two or more owners that is
not organized as a corporation.
◉ Securities and Exchange Commission (SEC). Answer: U.S.
governmental agency that oversees the U.S. financial markets.
◉ Sole Proprietorship. Answer: A business with a single owner.
◉ Cost Principle. Answer: A principle that states that acquired assets
and services should be recorded at their actual cost.
