27/06/2025, 09:06 Rutgers Introduction to Financial Accounting Exam 1 (2025) 100%VERIFIED |complete QUESTIONS AND ANSWERS | GRADED …
Rutgers Introduction to Financial Accounting
Exam 1 (2025) 100%VERIFIED |complete
QUESTIONS AND ANSWERS | GRADED A+.
Save
Terms in this set (58)
Three Basic Activities of identify, record, communicate
Accounting
Internal Users marketing, management, finance, human resources
External Users investors and creditors
standards of conduct by which one's actions are
Ethics judged as right or wrong; fair or unfair; honest or
dishonest
Generally Accepted standards that are generally accepted and universally
Accounting Principles practiced
(GAAP)
Historical Cost Principle dictates that companies record assets at their cost
states that assets and liabilities should be reported at
Fair Value Principle
fair value
requires that companies include accounting records
Monetary Unit Assumption only transaction data that can be expressed in fair
terms of money
requires that activities of the entity kept separate and
Economic Entity
distinct from the other activities of its owner and all
Assumption
other economic entities
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, 27/06/2025, 09:06 Rutgers Introduction to Financial Accounting Exam 1 (2025) 100%VERIFIED |complete QUESTIONS AND ANSWERS | GRADED …
Forms of Business proprietorship, partnership, corporation
Ownership
owned by one person; owner receives all profits and
Proprietorship
is responsible for all debts
owned by two or more persons; unlimited personal
Partnership
liability; partnership agreement
ownership divided into shares; separate legal entity
Corporation
organized under corp. law; limited liability
Basic Accounting Equation Assets = Liabilities + Stockholder's Equity
business's economic events recorded by accountants;
Transactions
external or internal
Retained Earnings Revenues - Expenses - Dividends
Income Statement; retained earnings; balance sheet;
Financial Statements
statement of cash flows
reports profitability of the company's operations over
Income Statement
a specific time
Income Statement Format Revenues - Expenses = Net Income (Loss)
Retained Earnings reports the changes in retained earning for a specific
Statement period of time; same time period as income statement
reports assets, liabilities, and stockholder's equity at a
Balance Sheet
specific date -> In that order
information on the cash receipts and payments for a
Statement of Cash Flows
specific period of time
record of increases and decreases in a specific asset,
Account
liability, equity, revenue, or expense item
each transaction must affect two or more accounts;
Double Entry System
Debits = Credits
Steps in the Recording Analyze, Journalize, Post
Process
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Rutgers Introduction to Financial Accounting
Exam 1 (2025) 100%VERIFIED |complete
QUESTIONS AND ANSWERS | GRADED A+.
Save
Terms in this set (58)
Three Basic Activities of identify, record, communicate
Accounting
Internal Users marketing, management, finance, human resources
External Users investors and creditors
standards of conduct by which one's actions are
Ethics judged as right or wrong; fair or unfair; honest or
dishonest
Generally Accepted standards that are generally accepted and universally
Accounting Principles practiced
(GAAP)
Historical Cost Principle dictates that companies record assets at their cost
states that assets and liabilities should be reported at
Fair Value Principle
fair value
requires that companies include accounting records
Monetary Unit Assumption only transaction data that can be expressed in fair
terms of money
requires that activities of the entity kept separate and
Economic Entity
distinct from the other activities of its owner and all
Assumption
other economic entities
https://quizlet.com/1057226962/rutgers-introduction-to-financial-accounting-exam-1-2025-100verified-complete-questions-and-answers-graded-a-flash… 1/5
, 27/06/2025, 09:06 Rutgers Introduction to Financial Accounting Exam 1 (2025) 100%VERIFIED |complete QUESTIONS AND ANSWERS | GRADED …
Forms of Business proprietorship, partnership, corporation
Ownership
owned by one person; owner receives all profits and
Proprietorship
is responsible for all debts
owned by two or more persons; unlimited personal
Partnership
liability; partnership agreement
ownership divided into shares; separate legal entity
Corporation
organized under corp. law; limited liability
Basic Accounting Equation Assets = Liabilities + Stockholder's Equity
business's economic events recorded by accountants;
Transactions
external or internal
Retained Earnings Revenues - Expenses - Dividends
Income Statement; retained earnings; balance sheet;
Financial Statements
statement of cash flows
reports profitability of the company's operations over
Income Statement
a specific time
Income Statement Format Revenues - Expenses = Net Income (Loss)
Retained Earnings reports the changes in retained earning for a specific
Statement period of time; same time period as income statement
reports assets, liabilities, and stockholder's equity at a
Balance Sheet
specific date -> In that order
information on the cash receipts and payments for a
Statement of Cash Flows
specific period of time
record of increases and decreases in a specific asset,
Account
liability, equity, revenue, or expense item
each transaction must affect two or more accounts;
Double Entry System
Debits = Credits
Steps in the Recording Analyze, Journalize, Post
Process
https://quizlet.com/1057226962/rutgers-introduction-to-financial-accounting-exam-1-2025-100verified-complete-questions-and-answers-graded-a-flash… 2/5
