SOLUTION MANUAL FOR FINANCIAL ACCOUNTING ACTUAL TEST BANK QUESTIONS SOLUTIONS GRADED A PLUS PREMIUM STUDY RESOURCE

SOLUTION MANUAL FOR FINANCIAL
ACCOUNTING ACTUAL TEST BANK
QUESTIONS SOLUTIONS GRADED A PLUS
PREMIUM STUDY RESOURCE

●● Booking/Book Keeping
Answer: The recording of economic events.


●● Identification
Answer: Analyzing the economic events relevant to a business.


●● Recording
Answer: Recording economic events in a systematic, chronological,
diary of events. Measured in dollars and cents.


●● Communication
Answer: Relaying information or accounting reports to interested users.


●● Internal Users
Answer: Users of financial information within a company/organization.
Examples:
- Finances

, - Marketing
- Management
- Human Resources


●● External Users
Answer: Users off financial information that are outside of the
company/organization.
Examples:
- Investors
- Creditors


●● GAAP
Answer: Generally Accepted Accounting Principles


●● Cost Principle (Historical Cost Principle)
Answer: Dictates that companies record assets at their cost at the time
the assets were purchased.
Example:
- "best buy purchases land at $360000, but by the end of the year the
value goes up to $400000. Best buy still declares it $360000 under the
HCP.


●● Fair Value Principle