Accounting 101 questions & answers.
Accounting ANS - is an information system that provides reports to users about the economic activities
and conditions of a business., the occupation of maintaining and auditing records and preparing
financial reports for a business
Accounting ANS - Is the language of business.
3 Types of Businesses ANS - 1) Service - provide services, rather than products to customers 2)
Merchandising-sell products they purchased from other businesses to customers 3) Manufacturing -
change basic inputs into products that are sold to customers.
GAAP ANS - Generally Accepted Accounting Principles
FASB ANS - Financial Accounting Standards Board (Makes accounting rules)
Cost Concept ANS - determines the amount intially entered into the accounting records for purchases.
Objectivity Concept ANS - requires that entries in the accounting records and the data reported on
financial statements be based on objective evidence.
Business Entity Concept ANS - Financial information is recorded and reported separately from the
owner's personal financial information.
Unit of Measure Concepts ANS - Economic data be recorded in dollars.
Matching Concept ANS - Expenses should be recorded in the same time period as any revenue
associated with those expenses.
Accounting ANS - is an information system that provides reports to users about the economic activities
and conditions of a business., the occupation of maintaining and auditing records and preparing
financial reports for a business
Accounting ANS - Is the language of business.
3 Types of Businesses ANS - 1) Service - provide services, rather than products to customers 2)
Merchandising-sell products they purchased from other businesses to customers 3) Manufacturing -
change basic inputs into products that are sold to customers.
GAAP ANS - Generally Accepted Accounting Principles
FASB ANS - Financial Accounting Standards Board (Makes accounting rules)
Cost Concept ANS - determines the amount intially entered into the accounting records for purchases.
Objectivity Concept ANS - requires that entries in the accounting records and the data reported on
financial statements be based on objective evidence.
Business Entity Concept ANS - Financial information is recorded and reported separately from the
owner's personal financial information.
Unit of Measure Concepts ANS - Economic data be recorded in dollars.
Matching Concept ANS - Expenses should be recorded in the same time period as any revenue
associated with those expenses.
