ACC 100 MIDTERM EXAM ALL POSSIBLE
QUESTIONS AND ANSWERS 2024/2025 SOLVED
100%;University of Toronto
Business - ANSWERActivity of making, buying, or selling goods or providing services in
exchange for money (for-profit business)
Primary sector - ANSWERDeal with growing / gathering raw materials or resources i.e..
farms, coal mining, oil drilling
Secondary Sector - ANSWERTurns raw materials into products ie. car manufactures,
factories
Tertiary sector - ANSWERprovides goods or services that are sold to consumers ie.
restaurants, hair dressers, music shops
Retailers - ANSWERearn profit by reselling or providing services to consumers to
satisfy wants or needs
Wholesalers - ANSWERBuy large quantities of goods from manufacturers, warehouses
them, and sells them to retailers
Stakeholders - ANSWERIndividuals or groups who affect or affected by business and
have objectives / wants from relationship with business
Internal stakeholders - ANSWERWork for business and their objective is to keep job,
get promoted, do job more efficiently, and get payed. ie. tax manager, owners,
employees
External Stakeholder - ANSWERindividuals or groups outside of business with
objectives of making decisions about money (resource allocation decisions) or how
business affects them ie. shareholders, government, customer, suppliers, creditors, and
society
Internal users - ANSWERUsers of financial info from within the company i.e..
employees: accounting, cash flows, collection
External Users - ANSWERUsers of financial info from outside the company ie. creditors:
use to determine if they should loan money
, Accounting System - ANSWERinformation system that collects, groups, and
communicates a business's financial position. Process changes financial data into
financial info in form of financial statements
Financial Statement - ANSWERProvide financial performance, current financial position
and cash flows
Qualitative characteristics - ANSWERqualities that stakeholders want in financial
statements
Faithful Quality - ANSWERtruthful, complete, free of error, and neutral / unbiased
Relevant Quality - ANSWERApplicable to decisions, help predict future / confirm past
decisions
Comparable Quality - ANSWERCan compare businesses from different years or two
different businesses
Verifiable Quality - ANSWERAnyone looking at information would determine similar
amounts or come up with same information learned
Timely Quality - ANSWERinformation provided quickly and recently
Understandable Quality - ANSWERGroup and present information clearly and concisely
Separate entity assumption - ANSWEROnly activities of business is included in
business' financial information
Unit-of-measure - ANSWERAll transactions must be reported using same monetary unit
Going concern assumption - ANSWERBusiness will continue to operate well into the
future
Historic Cost Assumption - ANSWERAll purchases are recorded at amount that was
payed
Time period / periodicity Assumption - ANSWERinformation is broken into artificial time
periods (monthly, quarterly, or yearly)
Full Disclosure Assumption - ANSWERIf something will affect decisions of stakeholders,
information must be reported
GAAP - ANSWERGenerally accepted Accounting principles followed to make financial
statements
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