FNDH 426 Exam 1 | 100% Correct | Verified |
2024 Version
What groups typically need financial data and for what? - ✔✔
Owners- track investments
Board of Directors- effectiveness of managers
Managers- assess daily and long term ops
Creditors- lend
Independent review of accounting records - ✔✔auditing
determination and control of cost - ✔✔cost accounting
reporting transactions for an organization and preparing various reports from these records -
✔✔financial accounting
using historical and estimated financial data to assist in daily operations and in planning future
operationgs - ✔✔managerial accounting
principles underlying preparation of financial statements, provide consistency to the preparation of
financial statements - ✔✔Generally Accepted Accounting Principles (GAAP)
Concept where business enterprise is separate from person or persons who supply its assets, and the
financial records of each are distinct - ✔✔business entity concept
what is the basic accounting equation - ✔✔Assets = Liabilities + Owner's Equity
What we owe and what we have - ✔✔assets
, what are current assets? - ✔✔cash and all assets that will be converted into cash in a short period of
time, generally 1 year
what are the fixed or long term assets - ✔✔permanent assets acquired to generate revenues for the
business
what is the most important dietitian asset? - ✔✔food
the rights of the creditors, which represent debts of the business - ✔✔liabilities
what are current liabilities - ✔✔items that must be paid within a period of 1 year, including accounts
payable for merchandise, accrued expenses, annual mortgage payment
what are fixed or long term liabilities - ✔✔financial obligations that will not be paid within current year
assumption that a business will continue to operate for an indefinite period of time - ✔✔going concern
concept
business transactions are recorded as dollar amounts - ✔✔money as a unit of measure
transactions are recorded in dollars at time of transaction - ✔✔cost principle
transaction recognized at time of cash inflow or outflow - ✔✔accrual basis of accounting
matching revenues with all applicable expenses during the accounting period in which they occur -
✔✔matching revenues and expenses
allocation of costs of a fixed asset over the estimated useful life of an asset - ✔✔depreciation
2024 Version
What groups typically need financial data and for what? - ✔✔
Owners- track investments
Board of Directors- effectiveness of managers
Managers- assess daily and long term ops
Creditors- lend
Independent review of accounting records - ✔✔auditing
determination and control of cost - ✔✔cost accounting
reporting transactions for an organization and preparing various reports from these records -
✔✔financial accounting
using historical and estimated financial data to assist in daily operations and in planning future
operationgs - ✔✔managerial accounting
principles underlying preparation of financial statements, provide consistency to the preparation of
financial statements - ✔✔Generally Accepted Accounting Principles (GAAP)
Concept where business enterprise is separate from person or persons who supply its assets, and the
financial records of each are distinct - ✔✔business entity concept
what is the basic accounting equation - ✔✔Assets = Liabilities + Owner's Equity
What we owe and what we have - ✔✔assets
, what are current assets? - ✔✔cash and all assets that will be converted into cash in a short period of
time, generally 1 year
what are the fixed or long term assets - ✔✔permanent assets acquired to generate revenues for the
business
what is the most important dietitian asset? - ✔✔food
the rights of the creditors, which represent debts of the business - ✔✔liabilities
what are current liabilities - ✔✔items that must be paid within a period of 1 year, including accounts
payable for merchandise, accrued expenses, annual mortgage payment
what are fixed or long term liabilities - ✔✔financial obligations that will not be paid within current year
assumption that a business will continue to operate for an indefinite period of time - ✔✔going concern
concept
business transactions are recorded as dollar amounts - ✔✔money as a unit of measure
transactions are recorded in dollars at time of transaction - ✔✔cost principle
transaction recognized at time of cash inflow or outflow - ✔✔accrual basis of accounting
matching revenues with all applicable expenses during the accounting period in which they occur -
✔✔matching revenues and expenses
allocation of costs of a fixed asset over the estimated useful life of an asset - ✔✔depreciation
