FUNDAMENTAL ACCOUNTING
PRINCIPLES EXAM SCRIPT VERIFIED
QUESTIONS AND SOLUTIONS COMPLETE
REVIEW MATERIAL
●● Recordkeeping
Answer: is the recording of transactions and events, either manually or
electronically. Also called bookkeeping.
●● Bookkeeping
Answer: is the recording of transactions and events, either manually or
electronically. Also called recordkeeping.
●● External users
Answer: Person using accounting information who are not directly
involved in running the organization.
●● Financial accounting
Answer: area of accounting aimed at serving external users by providing
them with general-purpose financial statements.
●● Internal Users
, Answer: Persons using accounting information who are directly
involved in managing the organization.
●● Managerial Accounting
Answer: area of accounting that serves the decision-making needs of
internal users; also called management accounting.
●● Ethics
Answer: Codes of conduct by which actions are judged as right or
wrong, fair or unfair, honest or dishonest.
●● Financial Accounting Standards Boards (FASB)
Answer: Independent group of full time members responsible for setting
accounting rules.
●● Securities and Exchange Commissions (SEC)
Answer: Federal agency Congress has charged to set reporting rules for
organizations that sell ownership shares to the public.
●● InternationalL Accounting Standards Board (IASB)
Answer: Group that identifies preferred accounting practices and
encourages global acceptance; issues International Financial Reporting
Standards (IFRS).
PRINCIPLES EXAM SCRIPT VERIFIED
QUESTIONS AND SOLUTIONS COMPLETE
REVIEW MATERIAL
●● Recordkeeping
Answer: is the recording of transactions and events, either manually or
electronically. Also called bookkeeping.
●● Bookkeeping
Answer: is the recording of transactions and events, either manually or
electronically. Also called recordkeeping.
●● External users
Answer: Person using accounting information who are not directly
involved in running the organization.
●● Financial accounting
Answer: area of accounting aimed at serving external users by providing
them with general-purpose financial statements.
●● Internal Users
, Answer: Persons using accounting information who are directly
involved in managing the organization.
●● Managerial Accounting
Answer: area of accounting that serves the decision-making needs of
internal users; also called management accounting.
●● Ethics
Answer: Codes of conduct by which actions are judged as right or
wrong, fair or unfair, honest or dishonest.
●● Financial Accounting Standards Boards (FASB)
Answer: Independent group of full time members responsible for setting
accounting rules.
●● Securities and Exchange Commissions (SEC)
Answer: Federal agency Congress has charged to set reporting rules for
organizations that sell ownership shares to the public.
●● InternationalL Accounting Standards Board (IASB)
Answer: Group that identifies preferred accounting practices and
encourages global acceptance; issues International Financial Reporting
Standards (IFRS).
