©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
Financial Accounting Exit Exam USD-
Questions 100% Solved
Generally accepted accounting principles (GAAP) - answer✔-Rules that govern accounting,
based on a conceptual framework
-Goal: to provide useful information to those making investment and lending decisions
Types of businesses organizations - answer✔Proprietorship, partnership, corporations, Limited
Liability companies
Accounting period - answer✔Businesses prepare financial statements for specific periods to
evaluate performance
Revenue recognition principle - answer✔Record revenue when it is earned
When service is provided or product delivered at the value or service transferred to customer
Matching principle - answer✔-measure all expenses incurred during the accounting period
-Match the expenses against the revenues earned during the same period
Time period concept - answer✔-Requires that accounting information be reported at regular
intervals
, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
-accounts are updated at the end of each accounting period
Entity concept - answer✔separate the owners (person transactions) of the business from the
transactions the company is involved in
Reliability Principle - answer✔you can verify and look at to make sure what is on the financial
statement is on their and accurate
Cost Principle - answer✔You are being able to record things at a certain value (what dollar value
it cost you for a particular item)
Going concern Principle - answer✔We are able to can believe that the company will be able to
operate in the net year
- the company will be a company next year
Monetary unit Principle - answer✔We are recording things in the books with a dollar value
Consistency Principle - answer✔Businesses should use the same accounting methods from
period to period
Disclosure principle - answer✔Companies should report enough information for outsiders to
make decisions about the company
Materiality principle - answer✔Companies must follow accounting rules for significant items
(significant- cause a user to change decision)
10/11/2024 1:41 PM
Financial Accounting Exit Exam USD-
Questions 100% Solved
Generally accepted accounting principles (GAAP) - answer✔-Rules that govern accounting,
based on a conceptual framework
-Goal: to provide useful information to those making investment and lending decisions
Types of businesses organizations - answer✔Proprietorship, partnership, corporations, Limited
Liability companies
Accounting period - answer✔Businesses prepare financial statements for specific periods to
evaluate performance
Revenue recognition principle - answer✔Record revenue when it is earned
When service is provided or product delivered at the value or service transferred to customer
Matching principle - answer✔-measure all expenses incurred during the accounting period
-Match the expenses against the revenues earned during the same period
Time period concept - answer✔-Requires that accounting information be reported at regular
intervals
, ©SIRJOEL EXAM SOLUTIONS
10/11/2024 1:41 PM
-accounts are updated at the end of each accounting period
Entity concept - answer✔separate the owners (person transactions) of the business from the
transactions the company is involved in
Reliability Principle - answer✔you can verify and look at to make sure what is on the financial
statement is on their and accurate
Cost Principle - answer✔You are being able to record things at a certain value (what dollar value
it cost you for a particular item)
Going concern Principle - answer✔We are able to can believe that the company will be able to
operate in the net year
- the company will be a company next year
Monetary unit Principle - answer✔We are recording things in the books with a dollar value
Consistency Principle - answer✔Businesses should use the same accounting methods from
period to period
Disclosure principle - answer✔Companies should report enough information for outsiders to
make decisions about the company
Materiality principle - answer✔Companies must follow accounting rules for significant items
(significant- cause a user to change decision)
