ACCT 201 ACCOUNTING EXAM 1 QUESTIONS AND WELL ELABORATED SOLUTION
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Course
ACCT 201 ACCOUNTING
Institution
ACCT 201 ACCOUNTING
ACCT 201 ACCOUNTING
EXAM 1 QUESTIONS AND
WELL ELABORATED
SOLUTION
Accounting Period - ANSWER -Time span covered by the financial statements;
normally one year, but may be a quarter, month or some other time interval
Accrual - ANSWER -Accounting recognition of revenue or expense in a period...
ACCT 201 ACCOUNTING
EXAM 1 QUESTIONS AND
WELL ELABORATED
SOLUTION
Accounting Period - ANSWER -Time span covered by the financial statements;
normally one year, but may be a quarter, month or some other time interval
Accrual - ANSWER -Accounting recognition of revenue or expense in a period
before cash is exchanged
Accrual Accounting - ANSWER -Accounting system which recognizes revenues
when earned and expenses when incurred regardless of when the related cash is
exchanged
Adverse Opinion - ANSWER -Opinion issued by a certified public accountant that
means one or more departures from GAAP in a company's financial statements
are so very material the auditors believe the financial statements do not fairly
represent the company's status
, Adjusting Entry - ANSWER -Entry that updates account balances prior to
preparing financial statements; a bookkeeping tool. Adjusting entries never affect
the Cash account
Allocations - ANSWER -Recognizing expenses by systematically assigning the
cost of an asset to periods of use
American Institute of CPA's - ANSWER -National association that serves the
education and professional interests of member of the public accounting
profession; membership is voluntary
Annual Reports - ANSWER -Document companies publish to provide information,
including financial statements, to stockholders
Asset Exchange Transaction - ANSWER -A transaction that decreases one asset
and increases another asset; total asset remain unchanged.
Asset Source Transaction - ANSWER -A transaction that increases both an asset
and a claim on assets ; the three types of asset source transactions are
aquisitions from owners (equity), borrowing from creditors (liabilities), or
earnings from operations (revenues).
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