D196- PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING QUESTIONS AND VERIFIED ANSWERS
bookkeeping - Answers - day to day keeping of transcations
steps of decision making - Answers - identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - Answers - analysis of events
record and report financial effects of business activities
where does capital come from (3) - Answers - investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - Answers - financial and managerial
managerial accounting - Answers - gather and analysis of information for internal use
and decision making.
financial accounting - Answers - gather, report, analysis of information for external
users- investors and creditors. summary of a business
what does managerial accounting review - Answers - product cost, breakeven analysis,
budgeting, performance analysis, outsource production
what does financial accounting review - Answers - credit analysis, financial health,
estimate value of the company
examples of external financial reports for financial accounting - Answers - annual report,
financial statement, balance sheet, income statement, statement of cash flow
balance sheet - Answers - reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - Answers - how much did you ,ake
period of time - from nov to jan
statement of cash flow - Answers - where did the cash come from and where did the
cash go
period of time - from nov to jan
, lender - Answers - 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 - Answers - 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 - Answers - both financial and
managerial
fasb- what does it stand for, who are they and what do they do - Answers - 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 - Answers - 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 - Answers - generally accepted accounting principles
sec - Answers - Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair information about
publicly traded companies.
legal punishment
iasb - Answers - International Accounting Standards Board
develop international accounting standards. made up of members from many countries
aicpa - Answers - 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 - Answers - 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 - Answers - statement of what they have and how they financed
it at a specific point in time.
balance sheet equation - Answers - assets = liabilities + owners equity
ACCOUNTING QUESTIONS AND VERIFIED ANSWERS
bookkeeping - Answers - day to day keeping of transcations
steps of decision making - Answers - identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - Answers - analysis of events
record and report financial effects of business activities
where does capital come from (3) - Answers - investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - Answers - financial and managerial
managerial accounting - Answers - gather and analysis of information for internal use
and decision making.
financial accounting - Answers - gather, report, analysis of information for external
users- investors and creditors. summary of a business
what does managerial accounting review - Answers - product cost, breakeven analysis,
budgeting, performance analysis, outsource production
what does financial accounting review - Answers - credit analysis, financial health,
estimate value of the company
examples of external financial reports for financial accounting - Answers - annual report,
financial statement, balance sheet, income statement, statement of cash flow
balance sheet - Answers - reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - Answers - how much did you ,ake
period of time - from nov to jan
statement of cash flow - Answers - where did the cash come from and where did the
cash go
period of time - from nov to jan
, lender - Answers - 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 - Answers - 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 - Answers - both financial and
managerial
fasb- what does it stand for, who are they and what do they do - Answers - 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 - Answers - 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 - Answers - generally accepted accounting principles
sec - Answers - Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair information about
publicly traded companies.
legal punishment
iasb - Answers - International Accounting Standards Board
develop international accounting standards. made up of members from many countries
aicpa - Answers - 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 - Answers - 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 - Answers - statement of what they have and how they financed
it at a specific point in time.
balance sheet equation - Answers - assets = liabilities + owners equity
