ACCT 2000 Practice Exam (Verified Q’s & Answers)
True - ✔✔True or False: Economic advisors are not considered to be primary users
of financial statements in countries outside the U.S.
GAAP is rules based, IFRS is principles based - ✔✔the most common description of IFRS
as contrasted to GAAP is that:
International financial reporting standards - ✔✔IFRS stands for:
Assets, liabilities, equity, income, expenses - ✔✔Which financial statement elements
does the IASB's definitional structure recognize
sole proprietorship - ✔✔form of business; simple, control, tax advantages, personal liability
partnership - ✔✔form of business; easy, broader skills, tax advantages, personal liability
corporation - ✔✔easy to sell, raise capital, no liability, double taxation
, False - ✔✔True or False: Accounting data is prepared for two broad groups of users:
owners and management
finance, human resources, marketing, management - ✔✔internal users of accounting
investors, creditors - ✔✔external users of accounting
income statement - ✔✔performance by a company during a period of time
(financial statement)
retained earnings statement - ✔✔how much income was distributed as dividends and
how much was retained in the business during a period of time (financial statement)
balance sheet - ✔✔what a business owns and owes at a specific point in time
statement of cash flow - ✔✔shows sources of cash and how cash was used during a
period of time
assets - ✔✔resources owned by the business which are expected to provide value or
service to the business at some future point in time
liabilities - ✔✔creditors claims, obligations or debts of the business, on total assets
for resources or services provided to the business in the past
Stockholders equity - ✔✔ownership claim on total assets
balance sheet - ✔✔shows relationship between assets, liabilities, and stockholders equity
at a particular date
True - ✔✔True or False: Economic advisors are not considered to be primary users
of financial statements in countries outside the U.S.
GAAP is rules based, IFRS is principles based - ✔✔the most common description of IFRS
as contrasted to GAAP is that:
International financial reporting standards - ✔✔IFRS stands for:
Assets, liabilities, equity, income, expenses - ✔✔Which financial statement elements
does the IASB's definitional structure recognize
sole proprietorship - ✔✔form of business; simple, control, tax advantages, personal liability
partnership - ✔✔form of business; easy, broader skills, tax advantages, personal liability
corporation - ✔✔easy to sell, raise capital, no liability, double taxation
, False - ✔✔True or False: Accounting data is prepared for two broad groups of users:
owners and management
finance, human resources, marketing, management - ✔✔internal users of accounting
investors, creditors - ✔✔external users of accounting
income statement - ✔✔performance by a company during a period of time
(financial statement)
retained earnings statement - ✔✔how much income was distributed as dividends and
how much was retained in the business during a period of time (financial statement)
balance sheet - ✔✔what a business owns and owes at a specific point in time
statement of cash flow - ✔✔shows sources of cash and how cash was used during a
period of time
assets - ✔✔resources owned by the business which are expected to provide value or
service to the business at some future point in time
liabilities - ✔✔creditors claims, obligations or debts of the business, on total assets
for resources or services provided to the business in the past
Stockholders equity - ✔✔ownership claim on total assets
balance sheet - ✔✔shows relationship between assets, liabilities, and stockholders equity
at a particular date
