FAC1601 Exam Questions and Answers Verified Solutions Latest Update

FAC1601 Exam Questions and Answers
Verified Solutions Latest Update


Question:

What are the four major elements of financial accounting?.

Answer:
Economic entities User groups Environment Financial information


Question:

What are the four basic financial statements?.

Answer:
1. Balance Sheet


Question:

Income Statement


Question:

Statement of Stockholder's Equity


Question:

Statement of Cash Flows


Question:

general-purpose financial statements.

Answer:
provide financial reporting information to a wide variety of users


Question:

Financial Accounting Standards Board (FASB).

Answer:
the primary accounting standard-setting body in the US

, Question:

What is the 7 step process to issue a final standard?.

Answer:
1. Identify the issue


Question:

Decision to pursue issue


Question:

Public meeting


Question:

Exposure draft 5 public round tables


Question:

Re-deliberation


Question:

Public of the final standard


Question:

When did the financial reporting standards setting begin in the United States?.

Answer:
1934 with the 1934 Securities exchange act


Question:

Who had the initial authority to set accounting standards?.

Answer:
The SEC initially had the power to communicate accounting standards that all
publicly-traded firms must follow. However, this power was delegated to the private
sector