ACC 201 Exam 1 Questions With Correct Answers.

ACC 201 Exam 1 Questions With Correct
Answers

Order of Financial Statements - CORRECT ANSWER✔✔-1. Income Statements
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2. Statement of Retained Earnings
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3. Balance Sheet
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4. Statements of Cash Flows
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What is accounting? - CORRECT ANSWER✔✔-The process of identifying,
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measuring and communicating economic information to permit informed
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decisions


What are users? - CORRECT ANSWER✔✔-The decision makers
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Accountants need to understand: - CORRECT ANSWER✔✔-1) The users of the
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information
2) Judgements/decisions they make
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Users need to understand: - CORRECT ANSWER✔✔-1) What accountants due
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2) Judgements/decisions they make
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What is financial accounting? - CORRECT ANSWER✔✔-External users
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, Ex. Buyers, Investors, Bankers
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What is Managerial accounting? - CORRECT ANSWER✔✔-Internal users
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Ex. Managers, Owners
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GAAP - CORRECT ANSWER✔✔-Standards that indicate how to report economic
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events.


FASB - CORRECT ANSWER✔✔-The primary accounting standards for the United
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States. This also formulates GAAP.
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IASB - CORRECT ANSWER✔✔-...
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IFRS - CORRECT ANSWER✔✔-...
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SEC - CORRECT ANSWER✔✔-Requires companies to have their financial
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statements audited by external accountants
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SOX - CORRECT ANSWER✔✔-...
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2 Documents publicly held companies must submit - CORRECT ANSWER✔✔-1)
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Annual report |




2) Quarterly report filings(10-K and 10-Q)
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