ACC 200 Exam; Questions & Answers 100%
Verified
What are the three types of businesses? Correct answer-Service, Merchandising,
Manufacturing
What does a service business do? Correct answer-Provides services to customers (does
not sell goods).
What does a merchandising business do? Correct...
ACC 200 Exam; Questions & Answers 100%
Verified
What are the three types of businesses? Correct answer-Service, Merchandising,
Manufacturing
What does a service business do? Correct answer-Provides services to customers (does
not sell goods).
What does a merchandising business do? Correct answer-Buys finished goods and sells
them to customers.
What does a manufacturing business do? Correct answer-Makes/manufactures the
products they sell.
What resources are used by businesses? Correct answer-Financial, Physical, Labor
What are financial resources? Correct answer-Money needed to establish and operate
the business.
Where do financial resources come from? Correct answer-Investors and Creditors
What are physical resources? Correct answer-Natural resources
, ACC 200 Exam; Questions & Answers 100%
Verified
What are labor resources? Correct answer-Intellectual and physical labor.
What is accounting? Correct answer-The information system that reports on the
economic activities and the financial condition of a business or other organization.
What is financial accounting? Correct answer-Branch of accounting focused on the
information needs of external users.
What is managerial accounting? Correct answer-Branch of accounting focused on the
information needs of managers and others working within the business.
What are external stakeholders? Correct answer-Lenders/Creditors
Owners/Stakeholders
Suppliers
Customers
Government
What are internal stakeholders? Correct answer-Business managers and employees
Are stockholders always stakeholders? Correct answer-All stockholders are stakeholders,
but not all stakeholders are stockholders.
, ACC 200 Exam; Questions & Answers 100%
Verified
What are types of nonprofit businesses? Correct answer-Foundations
Religious Groups
Governments
ex: Goodwill, YWCA, St. Jude
What are the goals of nonprofit businesses? Correct answer-To meet a societal need.
What do nonprofit businesses need accounting for? Correct answer-To provide donors
and contributors information on the uses of resources and effectiveness of meeting the goal.
When did the stock market crash? Correct answer-October 24th, 1929
What brought on the establishment of standard accounting principles? Correct answer-
After the stock market crashed, the public wanted transparency in reporting and regulation in
capital market.
What does FASB stand for? Correct answer-Financial Accounting Standards Board
, ACC 200 Exam; Questions & Answers 100%
Verified
What is the FASB? Correct answer-A privately funded organization that established the
accounting standards in the U.S.
What is GAAP? Correct answer-Generally Accepted Accounting Principles.
What is IASB? Correct answer-International Accounting Standards Board
What is IFRS? Correct answer-It is a widely accepted set of accounting principles that is in
use outside the USA in most countries.
It has largely replaced the individual country GAAP that existed in the countries that now use
IFRS.
Who created IFRS? Correct answer-IASB
What is the accounting equation? Correct answer-Assets = Liabilities + Stockholders'
Equity
What makes up stockholders' equity in the accounting equation? Correct answer-
Common stock + Retained Earnings
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