CFIN FINANCIAL ACCOUNTING FINAL EXAM 2024
NEWEST ACTUAL EXAM COMPLETE 450 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) /ALREADY GRADED A+ //BRAND NEW!!
GAAP - ANSWER: Generally Accepted Accounting Principles: Common set of
standards that the accounting proessions has developed and generally accepted and
universally praticed.
SEC - ANSWER: Securities and Exchange Commision: the agency of the U.S.
Government that oversees U.S. financial markets and accounting standard-setting
bodies
FASB - ANSWER: Financial Accounting Standards Board: The rimary accounting
standard- setting body in the United States.
Cost Principle - ANSWER: Dictates the companies record asset at their cost. This
information can be verified by documentation and is therfore reliable.
Monetary Unit - ANSWER: An assumption that requires companies to include in the
accounting recrds only transaction data that can be epressed in terms of money. This
enable accounting to quantify (measure) economic events and is vital to applying the
cost principle.
Economic Entity - ANSWER: Any organization or unit in society. It may be a company,
a governmental unit, a municipality, a schoo district or a church.
Economic Enity Assumption - ANSWER: Requires activites of an entity be kept
separate and distinct from the activities of its owner and all other economic entities
Assets - ANSWER: The resources a business owns. The business uses its assets in
carry out such activites as production and sales. Assets typically have capacity to
provide future services or benefits which can reslut in cash inflows.
Liabilites - ANSWER: Claims aganist assets- That is existing debts and obligations.
Accounts payable, notes payable, wages payable, wages payable, sales and real
estate taxes payable, and unearned revenue are a few examples.
Stockholders Equity - ANSWER: The ownership clain on total assets. Equal to total
assets minus total liabilites. The SHE section of corporations balanace sheet consits o
1) paid-in capital 2)retained earnings
Revenues - ANSWER: Gross increses in stockholders equity resulting from business
activities entered into for the purpose of earning income. Generally, revenue result
from selling merchandise, performing services, renting property and lending money.
, Expenses - ANSWER: the cost of assets consumed or services used in the process of
earning revenue. They are decreases in stocholders equity that result from operation
the business. EX. ingredient exp, telephone exp, utilites, supplies exp, rent exp,
intrest exp, property tax...etc
Sole Proprietorship - ANSWER: A business owned by own person. Usally only a
relatively small amount of money is necessary to start in business. The owner
receives any profits, suffers any losses, and is personally liable for all debts of the
business.
Partnerships - ANSWER: A business owned by two or more persons associated as
partners. Typically a partnership agreement sets forth such terms as inital
investment, duties of each partner, divison of net income, and settlement upon
death or withdrawl of a partner
Corporations - ANSWER: A business organized as a separate legal entity under state
corporation law and having ownership divided in transferable shares of stock.
Stockholders enjoy limited liability, may transfer all or part of their shares to ther
investers at any time. A corporation enjoys an unlimited life.
Corporation Advantages and Disadvantages - ANSWER: Advantage: limited liability,
ease of transferring ownership, profession management, unlimited life
Disadvantage: government regulations, double taxation
Accounting Equation - ANSWER: Assets= Liabilites+ Stockholders Equity
Investment by stockholder - ANSWER: Investment of cash in exchange for common
stock. Assets will increase and SHE will Increse.
Journal entry: Increase Cash & Incease Common Stock
Purchase of Equipment for Cash - ANSWER: Changes the composition of Assets
Journal entry: Cash decreases and Equipment Increases
Purchase of Supplies on credit - ANSWER: Supplies account under assets will increase
and liabilites (accounts payable) increases
Service Provided for cash - ANSWER: cash under assets will increase and service
revenue account under SHE will increase
Purchase of advertising on credit - ANSWER: result in a increase in liabilies (accounts
payable) and decrease in SHE (retained earnings) The advertising is an expenses for
your company (expenses increase, net income decreses retained earnings decreases,
and SHE decreases.
NEWEST ACTUAL EXAM COMPLETE 450 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) /ALREADY GRADED A+ //BRAND NEW!!
GAAP - ANSWER: Generally Accepted Accounting Principles: Common set of
standards that the accounting proessions has developed and generally accepted and
universally praticed.
SEC - ANSWER: Securities and Exchange Commision: the agency of the U.S.
Government that oversees U.S. financial markets and accounting standard-setting
bodies
FASB - ANSWER: Financial Accounting Standards Board: The rimary accounting
standard- setting body in the United States.
Cost Principle - ANSWER: Dictates the companies record asset at their cost. This
information can be verified by documentation and is therfore reliable.
Monetary Unit - ANSWER: An assumption that requires companies to include in the
accounting recrds only transaction data that can be epressed in terms of money. This
enable accounting to quantify (measure) economic events and is vital to applying the
cost principle.
Economic Entity - ANSWER: Any organization or unit in society. It may be a company,
a governmental unit, a municipality, a schoo district or a church.
Economic Enity Assumption - ANSWER: Requires activites of an entity be kept
separate and distinct from the activities of its owner and all other economic entities
Assets - ANSWER: The resources a business owns. The business uses its assets in
carry out such activites as production and sales. Assets typically have capacity to
provide future services or benefits which can reslut in cash inflows.
Liabilites - ANSWER: Claims aganist assets- That is existing debts and obligations.
Accounts payable, notes payable, wages payable, wages payable, sales and real
estate taxes payable, and unearned revenue are a few examples.
Stockholders Equity - ANSWER: The ownership clain on total assets. Equal to total
assets minus total liabilites. The SHE section of corporations balanace sheet consits o
1) paid-in capital 2)retained earnings
Revenues - ANSWER: Gross increses in stockholders equity resulting from business
activities entered into for the purpose of earning income. Generally, revenue result
from selling merchandise, performing services, renting property and lending money.
, Expenses - ANSWER: the cost of assets consumed or services used in the process of
earning revenue. They are decreases in stocholders equity that result from operation
the business. EX. ingredient exp, telephone exp, utilites, supplies exp, rent exp,
intrest exp, property tax...etc
Sole Proprietorship - ANSWER: A business owned by own person. Usally only a
relatively small amount of money is necessary to start in business. The owner
receives any profits, suffers any losses, and is personally liable for all debts of the
business.
Partnerships - ANSWER: A business owned by two or more persons associated as
partners. Typically a partnership agreement sets forth such terms as inital
investment, duties of each partner, divison of net income, and settlement upon
death or withdrawl of a partner
Corporations - ANSWER: A business organized as a separate legal entity under state
corporation law and having ownership divided in transferable shares of stock.
Stockholders enjoy limited liability, may transfer all or part of their shares to ther
investers at any time. A corporation enjoys an unlimited life.
Corporation Advantages and Disadvantages - ANSWER: Advantage: limited liability,
ease of transferring ownership, profession management, unlimited life
Disadvantage: government regulations, double taxation
Accounting Equation - ANSWER: Assets= Liabilites+ Stockholders Equity
Investment by stockholder - ANSWER: Investment of cash in exchange for common
stock. Assets will increase and SHE will Increse.
Journal entry: Increase Cash & Incease Common Stock
Purchase of Equipment for Cash - ANSWER: Changes the composition of Assets
Journal entry: Cash decreases and Equipment Increases
Purchase of Supplies on credit - ANSWER: Supplies account under assets will increase
and liabilites (accounts payable) increases
Service Provided for cash - ANSWER: cash under assets will increase and service
revenue account under SHE will increase
Purchase of advertising on credit - ANSWER: result in a increase in liabilies (accounts
payable) and decrease in SHE (retained earnings) The advertising is an expenses for
your company (expenses increase, net income decreses retained earnings decreases,
and SHE decreases.
