Financial Accounting (Sixth Edition) Questions and Answers

Financial Accounting (Sixth Edition) Questions
and Answers Account -
Answers-a record of the business activities related to a particular item



.Accounting - Answers-a system of maintaining records of a company's operations and communicating that
information to decision makers



.Accounting Equation - Answers-Equation that shows a company's resources (assets) equal creditors' and
owners' claims to those resources (liabilities and stockholders' equity)



.Assets - Answers-resources of a company



.Auditors - Answers-Trained individuals hired by a company as an independent party to express a professional
opinion of the conformity of that company's financial statements with GAAP



.Balance Sheet - Answers-a financial statement that presents the financial position of the company on a
particular date



.Common Stock - Answers-Amounts invested by stockholders when they purchase shares of stock; external
sour of equity



.Comparability - Answers-the ability of users to see similarities and differences between two different business
activities



.Consistency - Answers-The use of similar accoutning procedures either over time for the same company, or
across companies at the same point in time.



.Corporation - Answers-an entity that is legally separate from its owners