Financial Accounting Principles Quiz

Financial accounting is concerned with the summary, analysis, and reporting of financial transactions related to a business.

Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders.

GAAP is the standard framework of guidelines for financial accounting used in any given jurisdiction. It includes the standards, conventions, and rules that accountants follow in recording, summarizing, and preparing financial statements.

<p>IFRS is a set of accounting standards stating how particular types of transactions and other events should be reported in financial statements.</p> Signup and view all the answers

<p>Financial accountancy is governed by both local and international accounting standards.</p> Signup and view all the answers

<p>Financial accounting is concerned with the summary, analysis, and reporting of financial transactions related to a business, with the aim of providing information for decision-making purposes to stakeholders such as stockholders, suppliers, banks, employees, and government agencies.</p> Signup and view all the answers

<p>The two main sets of accounting standards governing financial accountancy are Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).</p> Signup and view all the answers

<p>Stakeholders interested in the information provided by financial accounting include stockholders, suppliers, banks, employees, government agencies, and business owners.</p> Signup and view all the answers

<p>GAAP includes the standards, conventions, and rules that accountants follow in recording, summarizing, and preparing financial statements.</p> Signup and view all the answers

<p>IFRS is a set of accounting standards stating how particular types of transactions and other events should be reported in financial statements.</p> Signup and view all the answers