Financial Accounting Quiz and Test

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Financial accounting is focused on the financial statements of a company.

External

Internal

Financial statements report the fair market value of a company.

True

False

Large corporations must follow the basis of accounting.

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

The U.S. government agency with authority over the financial reporting requirements of publicly traded corporations is the .

AICPA

FASB

IRS

SEC

The non-government organization that researches and develops new accounting standards is the .

AICPA

FASB

IRS

SEC

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

SEC is the acronym for .

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 pertains to activities.

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Financial Accounting (Practice Quiz)

Financial Accounting Outline

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Financial Accounting (Practice Quiz)

Financial Accounting Outline

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