D196- Principles of Financial and
Managerial Accounting Questions and
answers Graded A+(WGU)
bookkeeping - ANSWER-day to day keeping of transactions
steps of decision making - ANSWER-identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - ANSWER-analysis of events
record and report financial effects of business activities
where does capital come from (3) - ANSWER-investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - ANSWER-financial and managerial
managerial accounting - ANSWER-gather and analysis of information for internal
use and decision making.
financial accounting - ANSWER-gather, report, analysis of information for
external users- investors and creditors. summary of a business
what does managerial accounting review - ANSWER-product cost, breakeven
analysis, budgeting, performance analysis, outsource production
what does financial accounting review - ANSWER-credit analysis, financial
health, estimate value of the company
,examples of external financial reports for financial accounting - ANSWER-annual
report, financial statement, balance sheet, income statement, statement of cash
flow
balance sheet - ANSWER-reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - ANSWER-how much did you ,ake
period of time - from nov to jan
statement of cash flow - ANSWER-where did the cash come from and where did
the cash go
period of time - from nov to jan
lender - 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 - 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 - ANSWER-both financial and
managerial
fasb- what does it stand for, who are they and what do they do -
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 -
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 - ANSWER-generally accepted accounting principles
sec - ANSWER-Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair information
about publicly traded companies.
legal punishment
iasb - ANSWER-International Accounting Standards Board
develop international accounting standards. made up of members from many
countries
aicpa - ANSWER-american institute of certified public accountants
administers the cpa exam.
enforces professional sanction by taking away cpa license when acted
unethically.
role and purpose of accounting - ANSWER-accumulate and report on financial
information about performance, financial position, cash flow of a business. used
to reach decisions about how to manage the business, invest in it, or lend money
to it
what is a balance sheet - ANSWER-statement of what they have and how they
financed it at a specific point in time.
balance sheet equation - ANSWER-assets = liabilities + owners equity
what are assets and examples - ANSWER-what they own or control that will
provide probable future benefits
cash, accts receivable, inventory, buildings, land.
what are liabilities and examples - ANSWER-what we owe. obligations that
require future sacrifice.
phone bill, car loan, accts payable, fed and state govt tax, mortgage, unearned
revenue
Managerial Accounting Questions and
answers Graded A+(WGU)
bookkeeping - ANSWER-day to day keeping of transactions
steps of decision making - ANSWER-identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - ANSWER-analysis of events
record and report financial effects of business activities
where does capital come from (3) - ANSWER-investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - ANSWER-financial and managerial
managerial accounting - ANSWER-gather and analysis of information for internal
use and decision making.
financial accounting - ANSWER-gather, report, analysis of information for
external users- investors and creditors. summary of a business
what does managerial accounting review - ANSWER-product cost, breakeven
analysis, budgeting, performance analysis, outsource production
what does financial accounting review - ANSWER-credit analysis, financial
health, estimate value of the company
,examples of external financial reports for financial accounting - ANSWER-annual
report, financial statement, balance sheet, income statement, statement of cash
flow
balance sheet - ANSWER-reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - ANSWER-how much did you ,ake
period of time - from nov to jan
statement of cash flow - ANSWER-where did the cash come from and where did
the cash go
period of time - from nov to jan
lender - 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 - 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 - ANSWER-both financial and
managerial
fasb- what does it stand for, who are they and what do they do -
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 -
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 - ANSWER-generally accepted accounting principles
sec - ANSWER-Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair information
about publicly traded companies.
legal punishment
iasb - ANSWER-International Accounting Standards Board
develop international accounting standards. made up of members from many
countries
aicpa - ANSWER-american institute of certified public accountants
administers the cpa exam.
enforces professional sanction by taking away cpa license when acted
unethically.
role and purpose of accounting - ANSWER-accumulate and report on financial
information about performance, financial position, cash flow of a business. used
to reach decisions about how to manage the business, invest in it, or lend money
to it
what is a balance sheet - ANSWER-statement of what they have and how they
financed it at a specific point in time.
balance sheet equation - ANSWER-assets = liabilities + owners equity
what are assets and examples - ANSWER-what they own or control that will
provide probable future benefits
cash, accts receivable, inventory, buildings, land.
what are liabilities and examples - ANSWER-what we owe. obligations that
require future sacrifice.
phone bill, car loan, accts payable, fed and state govt tax, mortgage, unearned
revenue
