Financial Accounting

NOTE: For multiple-choice and true/false questions, simply place your cursor over what you think is the correct answer. (There is no need to click the answer.) For fill-in-the-blank questions place your cursor over the _________.

If you have difficulty answering the following questions, learn more about this topic by reading our Financial Accounting Explanation.

1.	Financial accounting is focused on the __________ financial statements of a company.
external              internal

2.

Financial statements report the fair market value of a company.

True

False

3.	Large corporations must follow the ___________ basis of accounting..

4.	Corporations whose stock is publicly traded must have their financial statements ________ by independent certified public accountants.

5.	The U.S. government agency with authority over the financial reporting requirements of publicly traded corporations is the _______.
AICPA              FASB              IRS              SEC

6.	The non-government organization that researches and develops new accounting standards is the _______.
AICPA              FASB              IRS              SEC

7.	The acronym for the common rules and standards that companies must follow when preparing its external financial statements is ______.

8.	SEC is the acronym for ____________ ____ ___________ _______________.

9.	FASB is the acronym for __________ ___________ ___________ ________.

10.	GAAP is the acronym for _________ _________ ___________ ___________.

11.	_________ entry bookkeeping will result in at least two accounts being involved in every transaction.

12.	Every transaction will have one account being credited and one account being ___________.

13.	The accounting equation is Assets = ___________ + Stockholders' (or Owner's) Equity.

14.	Matching, cost, and full disclosure are examples of the fundamental or basic accounting ______________.

15.	The profitability of a company for a specified period of time is reported on the ___________ statement.

16.	The main components or elements of the income statement are ___________, expenses, gains, and losses.

17.	Prepaid insurance is reported as an _________ on a company's balance sheet.

18.	The word "___________" is often in the title of liability accounts.

19.	The statement of cash flows explains the changes in cash and cash ______________ during the specified time interval.

20.	The first section of the statement of cash flows is the ____________ activities.