PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING (D196) Q&A LATEST EXAM UPDATE
GRADED A+
financial accounting --CORRECT ANSWER--gather, report, analysis
of information for external users- investors and creditors. summary of
a business
what does managerial accounting review --CORRECT ANSWER--
product cost, breakeven analysis, budgeting, performance analysis,
outsource production
what does financial accounting review --CORRECT ANSWER--
credit analysis, financial health, estimate value of the company
examples of external financial reports for financial accounting --
CORRECT ANSWER--annual report, financial statement, balance
sheet, income statement, statement of cash flow
balance sheet --CORRECT ANSWER--reports assets and liabilities.
basic.
list as of a point in time. as of today, as of yesterday
1|Page
,income statement --CORRECT ANSWER--how much did you ,ake
period of time - from nov to jan
bookkeeping --CORRECT ANSWER--day to day keeping of
transcations
steps of decision making --CORRECT ANSWER--identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting --CORRECT ANSWER--analysis of events
record and report financial effects of business activities
where does capital come from (3) --CORRECT ANSWER--investors
creditors(lenders)
business itself (from earnings retained)
2|Page
,2 main types of accounting --CORRECT ANSWER--financial and
managerial
managerial accounting --CORRECT ANSWER--gather and analysis
of information for internal use and decision making.
statement of cash flow --CORRECT ANSWER--where did the cash
come from and where did the cash go
period of time - from nov to jan
lender --CORRECT ANSWER--lends money with intend to get it
back plus interest. need current income, existing obligations, existing
assets, payroll stub, tax return, monthly payments, bank stmts
investor --CORRECT ANSWER--buys into your company. looks at if
the business is profitable, what they are buying, buying obligations,
potential future projections
what forms will the manager of a business use --CORRECT
ANSWER--both financial and managerial
3|Page
, fasb- what does it stand for, who are they and what do they do --
CORRECT ANSWER--financial accounting standards board
private group, not govt agency, no legal authority, conducted of
people from a variety of business related backgrounds.
establishes financial accounting and reporting standards for private
sector companies
1 of the two boards that make up GAAP
gasb- what does it stand for, who are they, what do they do --
CORRECT ANSWER--governmental accounting standards board
sets accounting and financial reporting standards for state and legal
governments.
authority over financial reporting by government entities
1 of the two boards that make up GAAP
gaap --CORRECT ANSWER--generally accepted accounting
principles
sec --CORRECT ANSWER--Securities and Exchange Commission
4|Page
ACCOUNTING (D196) Q&A LATEST EXAM UPDATE
GRADED A+
financial accounting --CORRECT ANSWER--gather, report, analysis
of information for external users- investors and creditors. summary of
a business
what does managerial accounting review --CORRECT ANSWER--
product cost, breakeven analysis, budgeting, performance analysis,
outsource production
what does financial accounting review --CORRECT ANSWER--
credit analysis, financial health, estimate value of the company
examples of external financial reports for financial accounting --
CORRECT ANSWER--annual report, financial statement, balance
sheet, income statement, statement of cash flow
balance sheet --CORRECT ANSWER--reports assets and liabilities.
basic.
list as of a point in time. as of today, as of yesterday
1|Page
,income statement --CORRECT ANSWER--how much did you ,ake
period of time - from nov to jan
bookkeeping --CORRECT ANSWER--day to day keeping of
transcations
steps of decision making --CORRECT ANSWER--identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting --CORRECT ANSWER--analysis of events
record and report financial effects of business activities
where does capital come from (3) --CORRECT ANSWER--investors
creditors(lenders)
business itself (from earnings retained)
2|Page
,2 main types of accounting --CORRECT ANSWER--financial and
managerial
managerial accounting --CORRECT ANSWER--gather and analysis
of information for internal use and decision making.
statement of cash flow --CORRECT ANSWER--where did the cash
come from and where did the cash go
period of time - from nov to jan
lender --CORRECT ANSWER--lends money with intend to get it
back plus interest. need current income, existing obligations, existing
assets, payroll stub, tax return, monthly payments, bank stmts
investor --CORRECT ANSWER--buys into your company. looks at if
the business is profitable, what they are buying, buying obligations,
potential future projections
what forms will the manager of a business use --CORRECT
ANSWER--both financial and managerial
3|Page
, fasb- what does it stand for, who are they and what do they do --
CORRECT ANSWER--financial accounting standards board
private group, not govt agency, no legal authority, conducted of
people from a variety of business related backgrounds.
establishes financial accounting and reporting standards for private
sector companies
1 of the two boards that make up GAAP
gasb- what does it stand for, who are they, what do they do --
CORRECT ANSWER--governmental accounting standards board
sets accounting and financial reporting standards for state and legal
governments.
authority over financial reporting by government entities
1 of the two boards that make up GAAP
gaap --CORRECT ANSWER--generally accepted accounting
principles
sec --CORRECT ANSWER--Securities and Exchange Commission
4|Page
