Financial Accounting Quiz

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

Matching, cost, and full disclosure are examples of the fundamental or basic accounting______________.

The profitability of a company for a specified period of time is reported on the___________ statement.

Large corporations must follow the ___________ basis of accounting..

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

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

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

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

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

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

GAAP is the acronym for _________ _________ ___________ ___________.

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

FASB is the acronym for __________ ___________ ___________ ________.

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

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

• AICPA

• FASB

• IRS

• SEC

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

• External

• Internal

SEC is the acronym for ____________ ____ ___________ _______________.

Financial statements report the fair market value of a company.

• True

• False

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

• AICPA

• FASB

• IRS

• SEC