Exam 1

Question 1

Financial accounting is the ____, ____, and ____, of financial information about economic entities to interested parties

Answer 1

Identification, measurement, and communication

Question 2

Three organizations involved in standard setting:

Answer 2

SEC
AICPA
FASB

Question 3

Fundamental quality faithful representation (3):

Answer 3

• Completeness
• Neutrality
• Free from error

Question 4

Debit =

Credit =

Answer 4

Debit = "Left"
Credit = "Right"

Question 5

Debits and Credits Summary:

Assets

Answer 5

Debit - up

Credit - down

Question 6

Debits and Credits Summary:

Liabilities

Answer 6

Debit - down

Credit - up

Question 7

Debits and Credits Summary:

Stockholders’ Equity

Answer 7

Debit - down

Credit - up

Question 8

Debits and Credits Summary:

Expense

Answer 8

Debit - up

Credit - down

Question 9

Debits and Credits Summary:

Revenue

Answer 9

Debit - down

Credit - up

Question 10

Discontinued operations amounts are reported ____

Answer 10

“Net of tax”

Question 11

Earnings per share formula:

Answer 11

(Net Income - Preferred Dividends) / (Weighted Average of Common Shares Outstanding)