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ACCOUNTING 101 CHAPTERS 1-4 Exam
Questions With 100% Correct Answers
Guaranteed Pass.
Financial accounting - Answer✔Provides information for external decision makers
Managerial accounting - Answer✔Accounting that focuses on providing information for internal
decision makers
Certified public accountant - Answer✔Licensed professional accounts who serve the general
public
Certified management accountants - Answer✔Certified professionals who typically work for a
single company
Financial Accounting Standards - Answer✔Private organization that oversees the creation and
governance of accounting standards in the US
Generally Accepted Accounting Principles - Answer✔Currently formulated by the FASB, the
main US accounting rule book
Securities and Exchange Commission - Answer✔Oversees the US financial markets
Economic entity assumption - Answer✔Organization that stands apart as a separate economic
unit
Cost principle - Answer✔States that acquired assets and services should be recorded at their
actual cost
Monetary Unit Assumption - Answer✔Requires the items on the financial statements to be
measured in terms of a monetary unit
Going concern assumption - Answer✔Assumes that the entity will remain in operation for the
foreseeable future
International accounting standards board - Answer✔Private organization that oversees the
creation and governance of international reporting standards
Retained earnings - Answer✔Equity that is earned but not distributed to stockholders (increases
with revenue and decreases with expenses)
1|Page
ACCOUNTING 101 CHAPTERS 1-4 Exam
Questions With 100% Correct Answers
Guaranteed Pass.
Financial accounting - Answer✔Provides information for external decision makers
Managerial accounting - Answer✔Accounting that focuses on providing information for internal
decision makers
Certified public accountant - Answer✔Licensed professional accounts who serve the general
public
Certified management accountants - Answer✔Certified professionals who typically work for a
single company
Financial Accounting Standards - Answer✔Private organization that oversees the creation and
governance of accounting standards in the US
Generally Accepted Accounting Principles - Answer✔Currently formulated by the FASB, the
main US accounting rule book
Securities and Exchange Commission - Answer✔Oversees the US financial markets
Economic entity assumption - Answer✔Organization that stands apart as a separate economic
unit
Cost principle - Answer✔States that acquired assets and services should be recorded at their
actual cost
Monetary Unit Assumption - Answer✔Requires the items on the financial statements to be
measured in terms of a monetary unit
Going concern assumption - Answer✔Assumes that the entity will remain in operation for the
foreseeable future
International accounting standards board - Answer✔Private organization that oversees the
creation and governance of international reporting standards
Retained earnings - Answer✔Equity that is earned but not distributed to stockholders (increases
with revenue and decreases with expenses)
1|Page
