WGU D196- Principles of Financial and Managerial
Accounting Study Guide 2023 with complete solution
bookkeeping
day to day keeping of transcations
steps of decision making
identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting
analysis of events
record and report financial effects of business activities
where does capital come from (3)
investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting
financial and managerial
managerial accounting
gather and analysis of information for internal use and decision making.
financial accounting
gather, report, analysis of information for external users- investors and creditors.
summary of a business
what does managerial accounting review
product cost, breakeven analysis, budgeting, performance analysis, outsource
production
what does financial accounting review
credit analysis, financial health, estimate value of the company
examples of external financial reports for financial accounting
annual report, financial statement, balance sheet, income statement, statement of cash
flow
balance sheet
reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement
how much did you ,ake
period of time - from nov to jan
statement of cash flow
where did the cash come from and where did the cash go
period of time - from nov to jan
lender
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
, 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
both financial and managerial
fasb- what does it stand for, who are they and what do they do
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
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
generally accepted accounting principles
sec
Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair information about
publicly traded companies.
legal punishment
iasb
International Accounting Standards Board
develop international accounting standards. made up of members from many countries
aicpa
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
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
statement of what they have and how they financed it at a specific point in time.
balance sheet equation
assets = liabilities + owners equity
what are assets and examples
what they own or control that will provide probable future benefits
cash, accts receivable, inventory, buildings, land.
what are liabilities and examples
what we owe. obligations that require future sacrifice.
phone bill, car loan, accts payable, fed and state govt tax, mortgage, unearned revenue
what is owners equity and examples
owners share, stockholders equity, how much owner originally invested in business +
how much profit they have left
Accounting Study Guide 2023 with complete solution
bookkeeping
day to day keeping of transcations
steps of decision making
identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting
analysis of events
record and report financial effects of business activities
where does capital come from (3)
investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting
financial and managerial
managerial accounting
gather and analysis of information for internal use and decision making.
financial accounting
gather, report, analysis of information for external users- investors and creditors.
summary of a business
what does managerial accounting review
product cost, breakeven analysis, budgeting, performance analysis, outsource
production
what does financial accounting review
credit analysis, financial health, estimate value of the company
examples of external financial reports for financial accounting
annual report, financial statement, balance sheet, income statement, statement of cash
flow
balance sheet
reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement
how much did you ,ake
period of time - from nov to jan
statement of cash flow
where did the cash come from and where did the cash go
period of time - from nov to jan
lender
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
, 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
both financial and managerial
fasb- what does it stand for, who are they and what do they do
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
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
generally accepted accounting principles
sec
Securities and Exchange Commission
regulates us stock exchange. provides investors with full and fair information about
publicly traded companies.
legal punishment
iasb
International Accounting Standards Board
develop international accounting standards. made up of members from many countries
aicpa
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
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
statement of what they have and how they financed it at a specific point in time.
balance sheet equation
assets = liabilities + owners equity
what are assets and examples
what they own or control that will provide probable future benefits
cash, accts receivable, inventory, buildings, land.
what are liabilities and examples
what we owe. obligations that require future sacrifice.
phone bill, car loan, accts payable, fed and state govt tax, mortgage, unearned revenue
what is owners equity and examples
owners share, stockholders equity, how much owner originally invested in business +
how much profit they have left
