ACCT 229 TAMU Exam 1 Review
Questions With 100% Verified Answers
economic entity -
correct answer ✅businesses are accounted for separately from
their owners
cost principle -
correct answer ✅record all assets at the original or historical cost
at which they were bought
going concern -
correct answer ✅the business will continue to exist into the
foreseeable future
monetary unit -
correct answer ✅record everything in the same currency of the
country the business is operating in (dollars)
time period assumption -
correct answer ✅break the life of the business into smaller
increments to be recorded (months, quarters, years)
, ACCT 229 TAMU Exam 1 Review
Questions With 100% Verified Answers
GAAP -
correct answer ✅Generally Accepted Accounting Principles: US set
of rules and principles used for accounting, under FASB and SEC
IASB -
correct answer ✅International versino of GAAP, principles not
always reconciled between the two
7 qualitative characteristics of accounting information -
correct answer ✅relevance, reliability, conservatism, materiality,
comparability, consistency, understandability
relevance -
correct answer ✅information is timely and useful for decision
making
faithful representation/reliability -
correct answer ✅information is complete, neutral, accurate,
unbiased
Questions With 100% Verified Answers
economic entity -
correct answer ✅businesses are accounted for separately from
their owners
cost principle -
correct answer ✅record all assets at the original or historical cost
at which they were bought
going concern -
correct answer ✅the business will continue to exist into the
foreseeable future
monetary unit -
correct answer ✅record everything in the same currency of the
country the business is operating in (dollars)
time period assumption -
correct answer ✅break the life of the business into smaller
increments to be recorded (months, quarters, years)
, ACCT 229 TAMU Exam 1 Review
Questions With 100% Verified Answers
GAAP -
correct answer ✅Generally Accepted Accounting Principles: US set
of rules and principles used for accounting, under FASB and SEC
IASB -
correct answer ✅International versino of GAAP, principles not
always reconciled between the two
7 qualitative characteristics of accounting information -
correct answer ✅relevance, reliability, conservatism, materiality,
comparability, consistency, understandability
relevance -
correct answer ✅information is timely and useful for decision
making
faithful representation/reliability -
correct answer ✅information is complete, neutral, accurate,
unbiased
