ACC100 (LATEST UPDATE) REAL QUESTIONS AND
VERIFIED ANSWERS |100% CORRECT | ALREADY GRADED
A
What is a sole proprietorship? Ans✓✓✓Single owner
What is a partnership? Ans✓✓✓Two or more owners
What is a corporation? Ans✓✓✓Many owners, can issue shares/bonds
What are non-business entities purpose? Ans✓✓✓Other than generating
income
What are financing activities? Ans✓✓✓Ways a company gets their
money
What is a creditor? Ans✓✓✓Someone the company owes money to
What are investing activities? Ans✓✓✓Doing something with future
economic benefit
What are operating activities? Ans✓✓✓Day-to-day costs
If something comes into the company as an investing activity it goes out
as a? Ans✓✓✓Investing activity
,Who are the users of accounting info? (2) Ans✓✓✓Internal and External
users
What is an external user? Ans✓✓✓Shareholders, creditors
What is an internal user? Ans✓✓✓Managers
What is the economic entity concept? Ans✓✓✓Personal accounts
separate from company accounts
What is the cost principle? Ans✓✓✓Record assets for what you paid for
them
What is the going concern? Ans✓✓✓Assumption an entity is not in
liquidation
What are the 5 qualitative characteristics? Ans✓✓✓Comparability,
Relevance, Understandability, Comparability, Reliability
What is comparability? (qualitative characteristics) Ans✓✓✓Able to
compare two companies
, What is relevance? (qualitative characteristics) Ans✓✓✓Is the info
relevant and up to date
What is understandability? (qualitative characteristics) Ans✓✓✓Is the
info understandable to someone needing the info
What is consistency? (qualitative characteristics) Ans✓✓✓Compare
financial periods in one company
What is reliability? (qualitative characteristics) Ans✓✓✓Info is
verifiable, neutral, and represented faithfully
What is the primary objective of financial reporting? Ans✓✓✓Give info
to users to make informed decisions
What is the supporting objective 1 of financial reporting? Ans✓✓✓To
provide info to potential investors
What is the supporting objective 2 of financial reporting?
Ans✓✓✓Reflect managements handling of assets
Where does prepaid rent go on the balance sheet? Ans✓✓✓Assets
VERIFIED ANSWERS |100% CORRECT | ALREADY GRADED
A
What is a sole proprietorship? Ans✓✓✓Single owner
What is a partnership? Ans✓✓✓Two or more owners
What is a corporation? Ans✓✓✓Many owners, can issue shares/bonds
What are non-business entities purpose? Ans✓✓✓Other than generating
income
What are financing activities? Ans✓✓✓Ways a company gets their
money
What is a creditor? Ans✓✓✓Someone the company owes money to
What are investing activities? Ans✓✓✓Doing something with future
economic benefit
What are operating activities? Ans✓✓✓Day-to-day costs
If something comes into the company as an investing activity it goes out
as a? Ans✓✓✓Investing activity
,Who are the users of accounting info? (2) Ans✓✓✓Internal and External
users
What is an external user? Ans✓✓✓Shareholders, creditors
What is an internal user? Ans✓✓✓Managers
What is the economic entity concept? Ans✓✓✓Personal accounts
separate from company accounts
What is the cost principle? Ans✓✓✓Record assets for what you paid for
them
What is the going concern? Ans✓✓✓Assumption an entity is not in
liquidation
What are the 5 qualitative characteristics? Ans✓✓✓Comparability,
Relevance, Understandability, Comparability, Reliability
What is comparability? (qualitative characteristics) Ans✓✓✓Able to
compare two companies
, What is relevance? (qualitative characteristics) Ans✓✓✓Is the info
relevant and up to date
What is understandability? (qualitative characteristics) Ans✓✓✓Is the
info understandable to someone needing the info
What is consistency? (qualitative characteristics) Ans✓✓✓Compare
financial periods in one company
What is reliability? (qualitative characteristics) Ans✓✓✓Info is
verifiable, neutral, and represented faithfully
What is the primary objective of financial reporting? Ans✓✓✓Give info
to users to make informed decisions
What is the supporting objective 1 of financial reporting? Ans✓✓✓To
provide info to potential investors
What is the supporting objective 2 of financial reporting?
Ans✓✓✓Reflect managements handling of assets
Where does prepaid rent go on the balance sheet? Ans✓✓✓Assets
