FREE ACCOUNTING AND STUDY GAMES ABOUT FINANCIAL

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FREE ACCOUNTING AND STUDY GAMES ABOUT FINANCIAL

ACCOUNTING EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -34 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: accounts

Answer:

detailed information about the elements is maintained in records

Question 2: asset source transaction

Answer:

increases the business's assets (cash) and its stockholders' equity (common stock)

Question 3: liabilities

Answer:

obligations a business has to its creditors

Question 4: labor resources

Answer:

intellectual and physical labor

Question 5: common stock

Answer:

specific commitments made to the investors are described in certificates

Question 6: international accounting standards board (iasb)

Answer:

address the need for a common set of financial standards - international financial reporting standards (ifrs)

Question 7: managerial accounting

Answer:

provide accounting information to internal users

Question 8: asset use transactions

Answer:

decrease the total amount of assets and the total amount of claims on assets (liabilities or stockholders' equity)

Question 9: stockholders

Answer:

terms investors

Question 10: assets

Answer:

the resources controlled by a business

Question 11: financial resources

Answer:

money

Question 12: retained earnings

Answer:

increase in the business's commitments to its stockholders

Question 13: going concern

Answer:

assumes that a business is able to continue its operations into the foreseeable future

Question 14: asset exchange transaction

Answer:

amount of total assets is not affected

Question 15: stakeholders

Answer:

the many users of accounting information

Question 16: creditors

Answer:

lend financial resources to businesses

Question 17: profit (income or earnings)

Answer:

added value created in the transformation process

Question 18: financial accounting standards board (fasb)

Answer:

privately funded organization with primary authority for establishing accounting standards in the u.s.

Question 19: not-for-profit entities

Answer:

organizations that are not motivated by profit

Question 20: revenue

Answer:

economic benefit a company obtains by providing costumers with goods and services

Question 21: physical resources

Answer:

natural resourses

Question 22: stockholders' equity

Answer:

business' commitment to the stockholders

Question 23: liquidation

Answer:

the process by which, if a business ceases to operate, its remaining assets are sold and the sale proceeds are returned to the creditors and investors

Question 24: financial accounting

Answer:

provide accounting information to external users

Question 25: generally accepted accounting principles (gaap)

Answer:

measurement rules established by the fasb

Question 26: accounting

Answer:

an information system that reports on the economic activities and financial condition of a business or other organization

Question 27: accounting equation

Answer:

relationship between a business's asset and the claims on its assets is frequently expressed in an equality

Question 28: double-entry bookkeeping

Answer:

all transactions affect the accounting equation in at least two places