ACC 100 Chapter 2 Exam Questions and Answers Latest Update 2024 (100% Pass)
How does financial data become financial information? - Answers After it is Categorised, Analysed and Formatted in the Accounting System.
What is financial information used for? - Answers It is used by stakeholders to att...
How does financial data become financial information? - Answers After it is Categorised, Analysed and
Formatted in the Accounting System.
What is financial information used for? - Answers It is used by stakeholders to attain their objectives.
What does the accounting system do? - Answers It processes and analyses Financial data, converting it
to Financial Information used to produce Financial statements.
Elements of Financial Reporting - Answers Assets, Liabilities, Equity, Revenue, Expenses
Financial Data - Answers A record of daily business transactions.
What are Financial statements for? - Answers They provide a business's financial performance, its
current financial position, and its cash flows.
GAAP? - Answers Generally accepted accounting principles.
Assets - Answers Owned, Due to Past events, Provide future economic Benefit.
Liability - Answers Owed, Due to Past events, Will be settled in the future
Equity - Answers Assets - Liabiliites
Owner's Capital + Retained Profit
Equity = Owner's Capital + Revenue - Expenses - Dividends
Revenue - Answers Income Earned when Job "done" (good delivered or service provided already)
Expenses - Answers Used, Consumed or Incurred to help generate revenue.
Critical Questions - Answers What did the Business get?
What did the Business give away?
Enhancing Questions - Answers What did the Business earn (REVENUE)
What did the Business use, consume or incur (EXPENSES)
What does the Businesss Owe (LIABILITIES or CAPITAL)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
