UTA ACCOUNTING ENTRANCE EXAM
SCRIPT VERIFIED QUESTIONS WITH FULL
SOLUTION
●● managerial accounting
Answer: internal users (used internally) no rules
●● financial accounting
Answer: external users (external reporting) rules
●● financial accounting follows
Answer: GAAP (Generally Accepted Accounting Principles)
FASB (financial accounting standards board)
●● how do businesses add value?
Answer: by converting financial, physical, and labor resources into
goods and services that consumers want
●● reason resource owners are willing to provide resources to
companies with high profit
Answer: those businesses have more profit to share with owners, are
able to pay more interest to creditors, and are in a better position to pay
higher prices for physical resources and wages
,●● who are rewarded with high profits?
Answer: businesses that efficiently produce products customers want
●● primary purpose of managerial accounting
Answer: to assist mangers within the company in determining how much
it costs to acquire resources and convert them into saleable goods and
services
●● GAAP
Answer: designed to provide guidance for financial accounting
●● requires financial information to operate effectively
Answer: profit businesses
government entities
nonprofit businesses
●● who must conduct an audit of a company's financial information?
Answer: public accountants
●● how accounting transactions are recorded
Answer: varies on the prospective you take
, ●● primary types of reporting entities
Answer: consumers
resource owners
businesses
●● companies and investors
Answer: count as own entities
●● A resource that will be used to produce revenue
Answer: asset
●● Sources of Assets
Answer: creditors
investors
operations
●● if total assets increase
Answer: liabilities or stockholders' equity increases by the same amount
●● liability
Answer: An amount owed by a business
SCRIPT VERIFIED QUESTIONS WITH FULL
SOLUTION
●● managerial accounting
Answer: internal users (used internally) no rules
●● financial accounting
Answer: external users (external reporting) rules
●● financial accounting follows
Answer: GAAP (Generally Accepted Accounting Principles)
FASB (financial accounting standards board)
●● how do businesses add value?
Answer: by converting financial, physical, and labor resources into
goods and services that consumers want
●● reason resource owners are willing to provide resources to
companies with high profit
Answer: those businesses have more profit to share with owners, are
able to pay more interest to creditors, and are in a better position to pay
higher prices for physical resources and wages
,●● who are rewarded with high profits?
Answer: businesses that efficiently produce products customers want
●● primary purpose of managerial accounting
Answer: to assist mangers within the company in determining how much
it costs to acquire resources and convert them into saleable goods and
services
●● GAAP
Answer: designed to provide guidance for financial accounting
●● requires financial information to operate effectively
Answer: profit businesses
government entities
nonprofit businesses
●● who must conduct an audit of a company's financial information?
Answer: public accountants
●● how accounting transactions are recorded
Answer: varies on the prospective you take
, ●● primary types of reporting entities
Answer: consumers
resource owners
businesses
●● companies and investors
Answer: count as own entities
●● A resource that will be used to produce revenue
Answer: asset
●● Sources of Assets
Answer: creditors
investors
operations
●● if total assets increase
Answer: liabilities or stockholders' equity increases by the same amount
●● liability
Answer: An amount owed by a business
