ACING MBA 510 MOD 1 WITH THE LATEST A+ QUESTIONS AND
ANSWERS STUDY COMPANION.
Why is accounting important?
accounting information impacts all of us.
assets =
liability + equity
4 financial statements:
income statement
statement of retained earnings
balance sheet
statement of cash flows
a system that identifies, records, and communicates financial information
accounting
an amount owned, resources with expected future benefits, resources controlled
by the business
asset
According to the fraud triangle, the three factors that must exist for a person to
commit fraud include __, __, and __.
rationalization
opportunity
pressure
the concepts and rules that govern financial accounting practice.
Generally Accepted Accounting Principles (GAAP)
Which of the following statements best represents the accounting equation?
The total of everything owned by a business must always equal the total of what the
business owes to creditors and owners
resources paid to the owners of a corporation
dividends
A corporation's equity has two main parts. Identify these two parts.
, -contributed capital
-retained earnings
how expenses affect equity?
if expenses increase, then total equity decreases
-higher expenses result in lower total equity
the effect of revenues on the equity of a business?
revenues cause equity to increase
-revenues that increase equity have many forms, such as consulting services and
commissions from services
expanded accounting equation
Assets = Liabilities + Common stock - Dividends + Revenues - Expenses
most accurate definition of dividends
Outflows of cash or other assets paid to the owners of a corporation
When recording transactions into the accounting equation, which of the following
statements are correct?
after recording transactions, assets will always equal liabilities plus equity
- the accounting equation must always remain in balance
____________________ includes opportunities in general accounting, cost
accounting, and internal auditing.
managerial accounting
if equity is $30,000 and liabilities are $19,000, then assets must equal:
$49,000
happenings that affect the accounting equation:
events
exchanges within an entity:
internal transactions
exchanges of value between two entities:
external transactions
ANSWERS STUDY COMPANION.
Why is accounting important?
accounting information impacts all of us.
assets =
liability + equity
4 financial statements:
income statement
statement of retained earnings
balance sheet
statement of cash flows
a system that identifies, records, and communicates financial information
accounting
an amount owned, resources with expected future benefits, resources controlled
by the business
asset
According to the fraud triangle, the three factors that must exist for a person to
commit fraud include __, __, and __.
rationalization
opportunity
pressure
the concepts and rules that govern financial accounting practice.
Generally Accepted Accounting Principles (GAAP)
Which of the following statements best represents the accounting equation?
The total of everything owned by a business must always equal the total of what the
business owes to creditors and owners
resources paid to the owners of a corporation
dividends
A corporation's equity has two main parts. Identify these two parts.
, -contributed capital
-retained earnings
how expenses affect equity?
if expenses increase, then total equity decreases
-higher expenses result in lower total equity
the effect of revenues on the equity of a business?
revenues cause equity to increase
-revenues that increase equity have many forms, such as consulting services and
commissions from services
expanded accounting equation
Assets = Liabilities + Common stock - Dividends + Revenues - Expenses
most accurate definition of dividends
Outflows of cash or other assets paid to the owners of a corporation
When recording transactions into the accounting equation, which of the following
statements are correct?
after recording transactions, assets will always equal liabilities plus equity
- the accounting equation must always remain in balance
____________________ includes opportunities in general accounting, cost
accounting, and internal auditing.
managerial accounting
if equity is $30,000 and liabilities are $19,000, then assets must equal:
$49,000
happenings that affect the accounting equation:
events
exchanges within an entity:
internal transactions
exchanges of value between two entities:
external transactions
