Accounting Competency Exam- Fau

Industry practices convention {Ans: accepted industry practices should be followed even if they differ from GAAP.}Assets {Ans: Things of value owned by the business. Examples include cash, machines, and buildings. To their owners, assets possess service potential or utility that can be measured and expressed in money terms.}Who are the US Standards Setters? {Ans: Financial Accounting Standard Board (FASB) Securities and Exchange Commission (SEC)}Profitability {Ans: Ability to generate income. The income statement reflects a company's profitability.}What is GAAP? {Ans: Rules accountants follow when preparing financial accounting reports. Also customs and norms.}Accounting cycle {Ans: A series of steps performed during the accounting period (some throughout the period and some at the end) to analyze, record, classify, summarize, and report useful financial information for the purpose of preparing financial statements.}