JMU COB 241 Exam 1 (Chapters 1-4) Exam Questions and Answers accounting - Correct Answers ✅Information system that reports on the economic activities and financial condition of a business or other organization profit - Correct Answers ✅The financial gain made in a transaction Revenue-Cost resources used to satisfy consumer demand - Correct Answers ✅1. Financial Resources
- Physical Resources
- Labor Resources
Investors - Correct Answers ✅provide $ in exchange for ownership interests. expect a return (share), including portion of earned income Creditors - Correct Answers ✅lend $ resources. expect to repay what was borrowed + interest stakeholders - Correct Answers ✅the many users of accounting information 1 / 2
JMU COB 241 Exam 1 (Chapters 1-4) Exam Questions and Answers Financial Accounting - Correct Answers ✅the branch of accounting that prepares financial statements for use by owners, creditors, suppliers, and other external stakeholders Managerial Accounting - Correct Answers ✅the area of accounting that focuses on reporting information to internal users Financial Accounting Standards Board (FASB) - Correct Answers ✅The primary accounting standard-setting body in the United States.Generally Accepted Accounting Principles (GAAP) - Correct Answers ✅the rules of financial accounting Financial Statements - Correct Answers ✅Financial reports that summarize the financial condition and operations of a business Income Statement - Correct Answers ✅A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time.Balance Sheet - Correct Answers ✅A financial statement that reports assets, liabilities, and owner's equity on a specific date.
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