MBA - Managerial Accounting
double-entry bookkeeping system Correct Answer: Records not only the use of the funds expended in
the transaction, but also the source of the funds expended in the transaction.
Italy Correct Answer: double-entry bookkeeping system was originally developed in...
credits Correct Answer: sources of funds are always recorded as...
debits Correct Answer: uses of funds are always recorded as...
books of original entry or sources of original entry Correct Answer: various types of journals, ledgers,
registers and source documents...
general ledger Correct Answer: a collection in one place of all the unsorted debits and credits that have
been recorded on the various books and sources of original entry...
trial balance Correct Answer: adding up all of the debits in the general ledger and all of the credits in
the general ledger to make sure that all of the debits are equal to all of the credits
credit
or source of funds Correct Answer: owner's equity is a...
source of funds Correct Answer: credit =
credit Correct Answer: a liability is a...
uses of funds Correct Answer: all debits are...
credit entry Correct Answer: to reduce the amount in an account with a debit balance, it takes a...
debit entry Correct Answer: to reduce the amount in account with a credit balance, it takes a...
asset Correct Answer: a cost with income earnings potential or residual value
capital contributions Correct Answer: Owner's contributions are called...
retained earnings Correct Answer: accumulated company earnings are called...
owner's equity Correct Answer: capital contributions plus retained earnings are called...
liability or debt equity Correct Answer: in proper accounting vernacular, debt is called...
Total Assets = Total Liabilities + Owner's Equity Correct Answer: basic formula for the Balance Sheet
expense Correct Answer: when an asset is used to generate income, it is called...
, expense Correct Answer: the use of an asset in an income earnings process
a debit entry and a use of funds Correct Answer: like an asset, an expense is also...
Revenues-Expenses=Net Income Correct Answer: The basic formula for the Income Statement
asset Correct Answer: if a company were to purchase inventory for resale, the inventory would be an...
Cost of Goods Sold Correct Answer: When a company sells inventory to generate income, the inventory
account would be credited and an expense account called _________ would be debited to record the
sale of inventory in the income earnings process.
loss Correct Answer: a cost with no income earnings potential or residual value
Balance Sheet Correct Answer: Losses are never recorded on the...
Debits and Uses of Funds Correct Answer: Losses are always...
abnormal spoilage Correct Answer: an unusually large amount of inventory was destroyed due to
employee negligence...
Cash Flow Statement Correct Answer: reflects those activities that affect cash inflows and cash outflows
500 and Luca Pacioli Correct Answer: Double-entry bookkeeping system was first described over ____
years ago in a book written by...
Generally Accepted Accounting Principles Correct Answer: GAAP stands for...
Securities Exchange Act of 1934 Correct Answer: What gave the SEC broad authority by statute to
determine and promulgate rules regulating financial and other information for public companies,
including GAAP for such companies?
Committe on Accounting Procedures (CAP) - 1938 to 1959 Correct Answer: First committee to have
authority to determine and promulgate GAAP.
Accounting and Principles Board (APB) - 1960 to 1971 Correct Answer: Second committee to have
authority to determine and promulgate GAAP.
Financial Accounting Standards Board (FASB) Correct Answer: In 1972, a separate and independent
organization was formed to take over the duties of determining and promulgating GAAP...
FASB Statements and FASB Interpretations Correct Answer: Two types of GAAP pronouncements
promulgated by FASB...
GAAP codification Correct Answer: In 2009, all of the accounting standards were compiled into...
Public Correct Answer: the only companies required by law to follow GAAP...
double-entry bookkeeping system Correct Answer: Records not only the use of the funds expended in
the transaction, but also the source of the funds expended in the transaction.
Italy Correct Answer: double-entry bookkeeping system was originally developed in...
credits Correct Answer: sources of funds are always recorded as...
debits Correct Answer: uses of funds are always recorded as...
books of original entry or sources of original entry Correct Answer: various types of journals, ledgers,
registers and source documents...
general ledger Correct Answer: a collection in one place of all the unsorted debits and credits that have
been recorded on the various books and sources of original entry...
trial balance Correct Answer: adding up all of the debits in the general ledger and all of the credits in
the general ledger to make sure that all of the debits are equal to all of the credits
credit
or source of funds Correct Answer: owner's equity is a...
source of funds Correct Answer: credit =
credit Correct Answer: a liability is a...
uses of funds Correct Answer: all debits are...
credit entry Correct Answer: to reduce the amount in an account with a debit balance, it takes a...
debit entry Correct Answer: to reduce the amount in account with a credit balance, it takes a...
asset Correct Answer: a cost with income earnings potential or residual value
capital contributions Correct Answer: Owner's contributions are called...
retained earnings Correct Answer: accumulated company earnings are called...
owner's equity Correct Answer: capital contributions plus retained earnings are called...
liability or debt equity Correct Answer: in proper accounting vernacular, debt is called...
Total Assets = Total Liabilities + Owner's Equity Correct Answer: basic formula for the Balance Sheet
expense Correct Answer: when an asset is used to generate income, it is called...
, expense Correct Answer: the use of an asset in an income earnings process
a debit entry and a use of funds Correct Answer: like an asset, an expense is also...
Revenues-Expenses=Net Income Correct Answer: The basic formula for the Income Statement
asset Correct Answer: if a company were to purchase inventory for resale, the inventory would be an...
Cost of Goods Sold Correct Answer: When a company sells inventory to generate income, the inventory
account would be credited and an expense account called _________ would be debited to record the
sale of inventory in the income earnings process.
loss Correct Answer: a cost with no income earnings potential or residual value
Balance Sheet Correct Answer: Losses are never recorded on the...
Debits and Uses of Funds Correct Answer: Losses are always...
abnormal spoilage Correct Answer: an unusually large amount of inventory was destroyed due to
employee negligence...
Cash Flow Statement Correct Answer: reflects those activities that affect cash inflows and cash outflows
500 and Luca Pacioli Correct Answer: Double-entry bookkeeping system was first described over ____
years ago in a book written by...
Generally Accepted Accounting Principles Correct Answer: GAAP stands for...
Securities Exchange Act of 1934 Correct Answer: What gave the SEC broad authority by statute to
determine and promulgate rules regulating financial and other information for public companies,
including GAAP for such companies?
Committe on Accounting Procedures (CAP) - 1938 to 1959 Correct Answer: First committee to have
authority to determine and promulgate GAAP.
Accounting and Principles Board (APB) - 1960 to 1971 Correct Answer: Second committee to have
authority to determine and promulgate GAAP.
Financial Accounting Standards Board (FASB) Correct Answer: In 1972, a separate and independent
organization was formed to take over the duties of determining and promulgating GAAP...
FASB Statements and FASB Interpretations Correct Answer: Two types of GAAP pronouncements
promulgated by FASB...
GAAP codification Correct Answer: In 2009, all of the accounting standards were compiled into...
Public Correct Answer: the only companies required by law to follow GAAP...
