Foundations of accounting Questions and Correct Answers/ Latest Update / Already Graded

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Foundations of accounting Questions and
Correct Answers/ Latest Update / Already
Graded
Financial accounting

Ans: Provides the information to decision makers which ar e
external to the business. They need information such as the
performance of the business, and the advisability of retaining
their investment in the business. Share holders determine to
buy more or less shares.


Managerial Accounting

Ans: responsibilities.
1. Wether to build a new plant
2. how much to spend for advertising, research and
development.
3. wether to lear or buy equipment and facilities.


Balance sheet

Ans: shows the firm's assets, liabilities, and owners equit y.


Assets


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Ans: valuable resources that a firm owns or control


Inventory

Ans: merchandise acquired that is to be sold to costumers.


Liabilities

Ans: obligations of the business to convey something of value
in the future


Accounts payable (liability)

Ans: Things that a business owes.


Notes payable

Ans: formal, written obligations-loans that a business has.


Owner's equity

Ans: refers to owner's interest in the business. It is a residual
amount that equals assets minus liabilities.


Income Statement

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