A200 exam 1 ACTUAL UPDATED Questions and CORRECT Answers
Terms in this set (57)
financial accounting - creates standardized reports
- external focus (investors, creditors, regulators)
managerial accounting - internal focus
- used by planning by managers, employees
GAAP Generally Accepted Accounting Principles- US
IFRS International Financial Reporting Standards- International
regulation SEC (securities and exchange commission) regulates publicly traded companies
Sole Proprietorship owned by one person, unlimited liability
partnership unlimited liability
corporation owned by stockholders, limited liability, access to capital, double taxation
shareholders vs. creditor shareholder = owner --> share profits/losses through dividends
creditor = lender --> owed repayment with interest, paid by shareholders
accounting equation Assets = Liabilities + Owner's Equity
what do creditors claim? liability
what do owners claim? equity
accounts in balance sheet assets, liabilities, owner's equity
accounts in income statement Revenues - Expenses
accounts in stockholders equity common stock, retained earning
temporary accounts revenues, expenses, dividends
permanent accounts assets, liabilities, equity
Common stock par value represents? the legal minimum value of stock
what return do creditors expect? interest
what return to shareholders expect? dividends
Terms in this set (57)
financial accounting - creates standardized reports
- external focus (investors, creditors, regulators)
managerial accounting - internal focus
- used by planning by managers, employees
GAAP Generally Accepted Accounting Principles- US
IFRS International Financial Reporting Standards- International
regulation SEC (securities and exchange commission) regulates publicly traded companies
Sole Proprietorship owned by one person, unlimited liability
partnership unlimited liability
corporation owned by stockholders, limited liability, access to capital, double taxation
shareholders vs. creditor shareholder = owner --> share profits/losses through dividends
creditor = lender --> owed repayment with interest, paid by shareholders
accounting equation Assets = Liabilities + Owner's Equity
what do creditors claim? liability
what do owners claim? equity
accounts in balance sheet assets, liabilities, owner's equity
accounts in income statement Revenues - Expenses
accounts in stockholders equity common stock, retained earning
temporary accounts revenues, expenses, dividends
permanent accounts assets, liabilities, equity
Common stock par value represents? the legal minimum value of stock
what return do creditors expect? interest
what return to shareholders expect? dividends
