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Accounting 2301 UTA Exam 1 QUESTIONS AND ANSWERS RATED A+ 2024/2025
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Accounting 2301 UTA Exam 1 QUESTIONS AND ANSWERS RATED A+ 2024/2025
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Accounting 2301 UTA Exam 1Why is accounting essential? - ANSInformation gadget that measures commercial enterprise
activities, tactics the facts into reviews, and communicates the effects to selection makers.
Language of Business.
Accounting Model - ANSStart with economic sports (are reviewed), create beneficial records
(excellent decisions)
Managerial Accounting - ANSFocuses on records for internal choice makers.
Ex. Company Managers and Employees
Financial Acounting - ANSProvides records for external selection makers
Ex. Outside investors, Lenders, Customers, Federal Government
Businesses - ANSSet desires, degree progress, make adjustment
Investors - ANSOutside investors, offer money to get business going
Creditor - ANSAny individual or commercial enterprise to whom a business owes cash
Certified Public Accountant (CPA) - ANSLicensed expert accountants who serve most of the
people.
Certified Management Accountant (CMA) - ANSCertified professionals who specialise in
accounting and economic control information. They normally paintings for a single employer.
Financial Accounting Standards Board (FASB) - ANSPrivately funded organization, oversees
the creation and governance of accounting requirements
Security and Exchange Commission (SEC) - ANSU.S. Governmental organization that oversees
the U.S. Monetary markets.
FASB and SEC - ANSWork Together
Generally Accepted Accounting Principles (GAAP) - ANSAccounting tips, formulated through
the FASB, the main U.S accounting rulebook
Economic Entity Assumption - ANSOrganization that stands aside as a separate monetary unit
Sole Proprietorship - ANSA business owned by one man or woman
, Partnership - ANSA commercial enterprise with two or more owners and no longer organized as
a business enterprise
Corporation - ANSA business prepared below state law that may be a separate felony entity.
Limited Liability Company (LLC) - ANSA organization in which each member is most effective
answerable for his or her personal movements.
Stockholders - ANSA individual who owns stock in a enterprise
Cost Principle - ANSStates that received assets and offerings must be recorded at their actual
price
Going Concern Assumption - ANSAssumes that the entity will continue to be in operation for the
foreseeable future.
Monetary Unit Assumption - ANSAccountants expect that the dollar is the only method to speak
financial activity, its maximum strong.
International Financial Reporting Standards (IFRS) - ANSAccounting requirements, issued by
the IASB, which have been adopted through many countries out of doors of the US.
Accounting Equation - ANSAssets = Liabilities + Equity
Assets - ANSEconomic sources, anticipated to gain commercial enterprise in destiny
Ex. Cash, Furniture, Land, Office Supplies
Liabilities - ANSDebts owed to lenders, have the word payable in name
Ex. Accounts payable
Accounts Payable - ANSA short-time period liability so one can be paid in the destiny.
Equity (Stockholders' Equity) - ANSOwner's claims to the belongings of the commercial
enterprise
Increase in Equity Contributed Capital & Revenues
Decrease in Equity Dividend & Expenses
Contributed Capital - ANSOwner contributions to a company
Revenues - ANSSales of goods and offerings, should exceed costs
Dividens - ANSEarnings allotted to stockholders
Expenses - ANSThe fees of operating a commercial enterprise
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