FAC1502 UNIT 1 BASIC PRINCIPLES OF ACCOUNTING EXAM SCRIPT COMPREHENSIVE STUDY GUIDE QUESTIONS WITH ACCURATE SOLUTIONS

FAC1502 UNIT 1 BASIC PRINCIPLES OF
ACCOUNTING EXAM SCRIPT
COMPREHENSIVE STUDY GUIDE
QUESTIONS WITH ACCURATE SOLUTIONS

●● accounting systems
Answer: The branch of accounting that covers the review of a firm's
entire information system, not just the accounting system


●● accrual basis accounting
Answer: System of reporting revenues and expenses in the period in
which they are considered to have been earned or incurred, regardless of
the actual time of collection or payment


●● adjusting entries
Answer: Entries required at the end of an accounting period to record
internal adjustments of various accounts due to the matching principle of
accounting


●● assets
Answer: Resources available for use by the business - that is, anything
owned by the business that has monetary value

, ●● auditing
Answer: The branch of accounting that examines a firm's financial
statements and internal controls for the purpose of expressing opinions
regarding the financial statements


●● balance sheet
Answer: Statement of the financial position of the hospitality
establishment on a given date, giving the account balances for assets,
liabilities, and ownership equity


●● bookkeeping
Answer: The recording and classification of transactions


●● business entity principle
Answer: An accounting principle that requires a business maintain its
own set of records and accounts that are separate from other financial
interests of its owners


●● cash basis accounting
Answer: System of reporting revenues and expenses at the time they are
collected or paid, respectively


●● conservatism principle