(GCU) ACC 240 Fundamentals of Accounting - Latest Final Exam Review Q & S 2024
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(GCU) ACC 240 Fundamentals of Accounting - Latest Final Exam Review Q & S 2024(GCU) ACC 240 Fundamentals of Accounting - Latest Final Exam Review Q & S 2024(GCU) ACC 240 Fundamentals of Accounting - Latest Final Exam Review Q & S 2024
,1. Multiple Choice: What is the primary purpose of financial
accounting?
a) Decision making
b) Tax optimization
c) Internal auditing
d) Cost measurement
Correct Answer: a) Decision making
Rationale: Financial accounting provides information that helps
stakeholders make informed decisions about allocating resources.
2. Fill-in-the-Blank: The ______ principle requires that revenue is
recognized when it is earned, regardless of when the cash is
received.
Correct Answer: Revenue Recognition
Rationale: This principle ensures that income is matched with the
expenses that brought it, providing a more accurate picture of
financial health.
, Rationale: The historical cost principle dictates that assets are
recorded based on their original cost at the time of purchase, not
the current market value.
4. Multiple Response: Which of the following are considered
intangible assets? (Select all that apply)
a) Patents
b) Trademarks
c) Buildings
d) Goodwill
Correct Answers: a) Patents, b) Trademarks, d) Goodwill
Rationale: Intangible assets are non-physical assets that have
value, such as patents, trademarks, and goodwill. Buildings are
tangible assets.
, 6. Fill-in-the-Blank: The statement that summarizes a company's
financial performance over a period is the ______ statement.
Correct Answer: Income
Rationale: The income statement provides a summary of the
company's revenues, expenses, and profits over a specific period.
7. True/False: A balance sheet shows a company's financial
position at a single point in time.
Correct Answer: True
Rationale: The balance sheet provides a snapshot of a company's
assets, liabilities, and equity at a specific point in time.
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