ACT210 CSU FINAL EXAM 2025
QUESTIONS AND ANSWERS
Accounting - ....ANSWER ...-A system of maintaining records of a
company's operations and communicating that information to decision makers
Accounting Equation - ....ANSWER ...-Equation that shows a company's
resources (assets) equal creditors' and owners' claims to those resources (liabilities
and stockholders' equity).
Assets - ....ANSWER ...-Resources of a company
Auditors - ....ANSWER ...-Trained individuals hired by a company as an
independent party to express a professional opinion of the conformity of that
company's financial statements with GAAP
Balance Sheet - ....ANSWER ...-A financial statement that presents the
financial position of the company on a particular date
Comparability - ....ANSWER ...-The ability of users to see similarities and
differences between two different business activities
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,Consistency - ....ANSWER ...-the use of similar accounting procedures
either over time for the same company, or across companies at the same point in
time
Corporation - ....ANSWER ...-an entity that is legally separate from its
owners
Cost constraint - ....ANSWER ...-financial accounting information is
provided only when the benefits of doing so exceed the costs
Decision usefulness - ....ANSWER ...-The ability of the information to be
useful in decision making
dividends - ....ANSWER ...-cash payments to stockholders
economic entity assumption - ....ANSWER ...-all economic events with a
particular economic entity can be identified
ethics - ....ANSWER ...-a code or moral system that provides criteria for
evaluating right and wrong behavior
expenses - ....ANSWER ...-cost of providing products and services
faithful representation - ....ANSWER ...-accounting information that is
complete, neutral, and free from error
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,financial accounting - ....ANSWER ...-measurement of business activities of
a company and communication of those measurements to external parties for
decision-making purposes
Financial Accounting Standards Board (FASB) - ....ANSWER ...-An
independent, private body that has primary responsibility for the establishment of
GAAP in the United States.
financial statements - ....ANSWER ...-periodic reports published by the
company for the purpose of providing information to external users
Generally Accepted Accounting Principles (GAAP) - ....ANSWER ...-the
rules of financial accounting
Going Concern Assumption - ....ANSWER ...-in the absences of
information to the contrary, a business entity will continue to operate indefinitely
income statement - ....ANSWER ...-A financial statement that reports a
company's revenues and expenses over an interval of time
International Accounting Standards Board (IASB) - ....ANSWER ...-An
international accounting standard-setting body responsible for the convergence of
accounting standards worldwide.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, International Financial Reporting Standards (IFRS) - ....ANSWER ...-The
standards being developed and promoted by the International Accounting
Standards Board.
Liabilities - ....ANSWER ...-Amounts owed to creditors
Monetary Unit Assumption - ....ANSWER ...-a unit or scale of measurement
can be used to measure financial statement elements
net income - ....ANSWER ...-the difference between total revenue and total
expenses
partnership - ....ANSWER ...-a business owned by two or more people
Periodicity Assumption - ....ANSWER ...-the economic life of an enterprise
(presumed to be indefinite) can be divided into artificial time periods for financial
reporting
relevance - ....ANSWER ...-Accounting information that possesses
confirmatory value and/or predictive value, and that is material
retained earnings - ....ANSWER ...-cumulative amount of net income earned
over the life of the company that has been kept (retained) in the business rather
than distributed to stockholders as dividends (not retained)
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
QUESTIONS AND ANSWERS
Accounting - ....ANSWER ...-A system of maintaining records of a
company's operations and communicating that information to decision makers
Accounting Equation - ....ANSWER ...-Equation that shows a company's
resources (assets) equal creditors' and owners' claims to those resources (liabilities
and stockholders' equity).
Assets - ....ANSWER ...-Resources of a company
Auditors - ....ANSWER ...-Trained individuals hired by a company as an
independent party to express a professional opinion of the conformity of that
company's financial statements with GAAP
Balance Sheet - ....ANSWER ...-A financial statement that presents the
financial position of the company on a particular date
Comparability - ....ANSWER ...-The ability of users to see similarities and
differences between two different business activities
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Consistency - ....ANSWER ...-the use of similar accounting procedures
either over time for the same company, or across companies at the same point in
time
Corporation - ....ANSWER ...-an entity that is legally separate from its
owners
Cost constraint - ....ANSWER ...-financial accounting information is
provided only when the benefits of doing so exceed the costs
Decision usefulness - ....ANSWER ...-The ability of the information to be
useful in decision making
dividends - ....ANSWER ...-cash payments to stockholders
economic entity assumption - ....ANSWER ...-all economic events with a
particular economic entity can be identified
ethics - ....ANSWER ...-a code or moral system that provides criteria for
evaluating right and wrong behavior
expenses - ....ANSWER ...-cost of providing products and services
faithful representation - ....ANSWER ...-accounting information that is
complete, neutral, and free from error
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,financial accounting - ....ANSWER ...-measurement of business activities of
a company and communication of those measurements to external parties for
decision-making purposes
Financial Accounting Standards Board (FASB) - ....ANSWER ...-An
independent, private body that has primary responsibility for the establishment of
GAAP in the United States.
financial statements - ....ANSWER ...-periodic reports published by the
company for the purpose of providing information to external users
Generally Accepted Accounting Principles (GAAP) - ....ANSWER ...-the
rules of financial accounting
Going Concern Assumption - ....ANSWER ...-in the absences of
information to the contrary, a business entity will continue to operate indefinitely
income statement - ....ANSWER ...-A financial statement that reports a
company's revenues and expenses over an interval of time
International Accounting Standards Board (IASB) - ....ANSWER ...-An
international accounting standard-setting body responsible for the convergence of
accounting standards worldwide.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, International Financial Reporting Standards (IFRS) - ....ANSWER ...-The
standards being developed and promoted by the International Accounting
Standards Board.
Liabilities - ....ANSWER ...-Amounts owed to creditors
Monetary Unit Assumption - ....ANSWER ...-a unit or scale of measurement
can be used to measure financial statement elements
net income - ....ANSWER ...-the difference between total revenue and total
expenses
partnership - ....ANSWER ...-a business owned by two or more people
Periodicity Assumption - ....ANSWER ...-the economic life of an enterprise
(presumed to be indefinite) can be divided into artificial time periods for financial
reporting
relevance - ....ANSWER ...-Accounting information that possesses
confirmatory value and/or predictive value, and that is material
retained earnings - ....ANSWER ...-cumulative amount of net income earned
over the life of the company that has been kept (retained) in the business rather
than distributed to stockholders as dividends (not retained)
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
