|
Domanda |
Risposta |
What is the main purpose of accounting? inizia ad imparare
|
|
To measure, process, and communicate financial information to decision-makers.
|
|
|
Who are the external users of financial accounting? inizia ad imparare
|
|
Investors, creditors, and taxing authorities.
|
|
|
What is managerial accounting used for? inizia ad imparare
|
|
Providing financial information to internal decision-makers like managers.
|
|
|
What are the types of accounting professions? inizia ad imparare
|
|
Certified Public Accountant (CPA), Certified Management Accountant (CMA).
|
|
|
Who sets U.S. accounting standards? inizia ad imparare
|
|
The Financial Accounting Standards Board (FASB).
|
|
|
What does GAAP stand for? inizia ad imparare
|
|
Generally Accepted Accounting Principles.
|
|
|
What are the three main components of the accounting equation? inizia ad imparare
|
|
Assets, Liabilities, and Equity.
|
|
|
|
inizia ad imparare
|
|
An economic resource expected to benefit the business in the future.
|
|
|
|
inizia ad imparare
|
|
Owner contributions and revenues.
|
|
|
|
inizia ad imparare
|
|
Owner withdrawals and expenses.
|
|
|
What is the formula for the basic accounting equation? inizia ad imparare
|
|
Assets = Liabilities + Equity.
|
|
|
What is the difference between cash and accrual accounting? inizia ad imparare
|
|
Cash records transactions when cash changes hands; accrual records when earned or incurred.
|
|
|
Is cash basis accounting allowed under GAAP? inizia ad imparare
|
|
|
|
|
What does the time period concept refer to? inizia ad imparare
|
|
Dividing business operations into specific time periods for reporting.
|
|
|
When should revenue be recorded under the revenue recognition principle? inizia ad imparare
|
|
|
|
|
What does the matching principle state? inizia ad imparare
|
|
Expenses should be recorded in the same period as the related revenues.
|
|
|
|
inizia ad imparare
|
|
Transactions where cash is received or paid before the revenue or expense is recognized.
|
|
|
|
inizia ad imparare
|
|
Transactions where revenue or expense is recognized before cash is received or paid.
|
|
|
|
inizia ad imparare
|
|
Allocation of a plant asset’s cost over its useful life.
|
|
|
What is the purpose of adjusting entries? inizia ad imparare
|
|
To update account balances before financial statements are prepared.
|
|
|
What is the adjusted trial balance? inizia ad imparare
|
|
A list of all accounts and their adjusted balances.
|
|
|
What financial statements are prepared at period end? inizia ad imparare
|
|
Income statement, statement of owner's equity, and balance sheet.
|
|
|
What is the purpose of closing entries? inizia ad imparare
|
|
To reset temporary accounts for the next accounting period.
|
|
|
Which accounts are considered temporary? inizia ad imparare
|
|
Revenues, expenses, and owner’s withdrawals.
|
|
|
Which accounts are permanent? inizia ad imparare
|
|
Assets, liabilities, and owner’s capital.
|
|
|
What is the Income Summary account used for? inizia ad imparare
|
|
To temporarily hold net income or loss before closing to capital.
|
|
|
What is a post-closing trial balance? inizia ad imparare
|
|
A list of all permanent account balances after closing entries.
|
|
|
What does the current ratio measure? inizia ad imparare
|
|
A company’s ability to pay current liabilities with current assets.
|
|
|
What is the formula for current ratio? inizia ad imparare
|
|
Current Assets / Current Liabilities.
|
|
|
What are reversing entries? inizia ad imparare
|
|
Optional entries to simplify next period accounting by reversing certain adjustments.
|
|
|
