WSP Accounting Crash Course Exam Newest Exam
2025 | Updated Questions and Correct Answers |
Graded A+ | Verified Answers | Just Released
What is accounting ---------CORRECT ANSWER-----------------it is the standard
language of business.
It is the standard set of rules for measuring a firm's financial performance.
Assessing a company's financial performance is important for many groups,
including:
- officers, investors, lenders, general public
Standard financial statements serve as ... ---------CORRECT ANSWER-----------------it
serves as a "yardstick" of communicating financial performance to the general
public.
Why is accounting important? ---------CORRECT ANSWER------------------ because
enables managers to make corporate decisions
- it enables you to look at a set of financial figures in a standardized in compared
across different companies
- also to make sound investments
,The order of Generally Accepted Accounting Principles (GAAP) ---------CORRECT
ANSWER-----------------1. the US gov called the Securities and Exchange
Commission (SEC) authorizes the Financial Accounting Standard Board (FASB) to
determine US accounting rules
2. the FASB then communicates these rules through the issuance of statements of
Financial Accounting Standards (SFAS). These statements make up the body of
accounting rules known as the Generally Accepted Accounting Principles (GAAP)
3. These rules have been developed to provide guidelines for financial accounting
in order to ensure that business present their financial information in a fair,
consistent, and straightforward basis. Financial statements must be prepared
according the GAPP.
Summary:
Accounting follows GAAP which are guidelines for measuring and presenting
financial information in fair, consistent, and straighforward basis.
About the International Financial Reporting Standards (IFRS) ---------CORRECT
ANSWER------------------ over 100 countries, including the EU, UK, Canada,
Australia, Russia have adopted a unified set of international accounting standards
(IFRS)
,FASB bases GAAP on several key theoretical assumptions, principles, and
constraints - some of the key underlying assumptions: ---------CORRECT ANSWER--
---------------1st assumption: A company is considered a seprate "living" enterprise,
apart from its owners.
- in other words, a corporation is a "fictional" being:
- has a name
- has incorporation date and place respectively ("birthdate and birthplace"
- it is engaged in clearly-defined activities
- regularly reports its financial health (through financial reports) to the general
public
- pays taxes
2nd assumption: A company is considered a "going concern" for the foreseeable
future (value assets and liabilites)
- in other words, a corporation is assumed to remain in existence indefinitely
3rd assumption: Financial statements must be reported in the national monetary
unit
- They can show only measurable activites of a corporation such as its quantifiable
resources, its liabilites (money owed by it), amount of taxes facing it, etc.
This excludes things like:
customer loyalty, employee satisfaction, environmental awareness - as they are
difficult to quantify
, 4th assumption: periodicity - companies are required to file annual and interim
reports (less than one year)
- quarterly reports and annual financial reports are required
- an accounting year (fiscal year) frequently does not align with calendar year
What are the major underlying principles ---------CORRECT ANSWER-----------------
Principle 1: Historical cost
- it is the easiest measurement method w/o a need for any appraisal and
revaluation
Principle 2 and 3: Accural Accounting (Revenue recoginition and matching
principle)
- #2: accrual basis of accounting dictates that revenues must be recorded when
earned and measurable
- #3: under the matching principle, costs associated with making a product must
be recorded during the same period as revenue generate from that product.
-#4: Full disclosure
2025 | Updated Questions and Correct Answers |
Graded A+ | Verified Answers | Just Released
What is accounting ---------CORRECT ANSWER-----------------it is the standard
language of business.
It is the standard set of rules for measuring a firm's financial performance.
Assessing a company's financial performance is important for many groups,
including:
- officers, investors, lenders, general public
Standard financial statements serve as ... ---------CORRECT ANSWER-----------------it
serves as a "yardstick" of communicating financial performance to the general
public.
Why is accounting important? ---------CORRECT ANSWER------------------ because
enables managers to make corporate decisions
- it enables you to look at a set of financial figures in a standardized in compared
across different companies
- also to make sound investments
,The order of Generally Accepted Accounting Principles (GAAP) ---------CORRECT
ANSWER-----------------1. the US gov called the Securities and Exchange
Commission (SEC) authorizes the Financial Accounting Standard Board (FASB) to
determine US accounting rules
2. the FASB then communicates these rules through the issuance of statements of
Financial Accounting Standards (SFAS). These statements make up the body of
accounting rules known as the Generally Accepted Accounting Principles (GAAP)
3. These rules have been developed to provide guidelines for financial accounting
in order to ensure that business present their financial information in a fair,
consistent, and straightforward basis. Financial statements must be prepared
according the GAPP.
Summary:
Accounting follows GAAP which are guidelines for measuring and presenting
financial information in fair, consistent, and straighforward basis.
About the International Financial Reporting Standards (IFRS) ---------CORRECT
ANSWER------------------ over 100 countries, including the EU, UK, Canada,
Australia, Russia have adopted a unified set of international accounting standards
(IFRS)
,FASB bases GAAP on several key theoretical assumptions, principles, and
constraints - some of the key underlying assumptions: ---------CORRECT ANSWER--
---------------1st assumption: A company is considered a seprate "living" enterprise,
apart from its owners.
- in other words, a corporation is a "fictional" being:
- has a name
- has incorporation date and place respectively ("birthdate and birthplace"
- it is engaged in clearly-defined activities
- regularly reports its financial health (through financial reports) to the general
public
- pays taxes
2nd assumption: A company is considered a "going concern" for the foreseeable
future (value assets and liabilites)
- in other words, a corporation is assumed to remain in existence indefinitely
3rd assumption: Financial statements must be reported in the national monetary
unit
- They can show only measurable activites of a corporation such as its quantifiable
resources, its liabilites (money owed by it), amount of taxes facing it, etc.
This excludes things like:
customer loyalty, employee satisfaction, environmental awareness - as they are
difficult to quantify
, 4th assumption: periodicity - companies are required to file annual and interim
reports (less than one year)
- quarterly reports and annual financial reports are required
- an accounting year (fiscal year) frequently does not align with calendar year
What are the major underlying principles ---------CORRECT ANSWER-----------------
Principle 1: Historical cost
- it is the easiest measurement method w/o a need for any appraisal and
revaluation
Principle 2 and 3: Accural Accounting (Revenue recoginition and matching
principle)
- #2: accrual basis of accounting dictates that revenues must be recorded when
earned and measurable
- #3: under the matching principle, costs associated with making a product must
be recorded during the same period as revenue generate from that product.
-#4: Full disclosure
