FIS - exam 1 questions well answered
already passed
Financial accounting - correct answer ✔✔process that culminates in the preparation of financial
reports on the enterprise for use by both internal and external parties.
Managerial accounting - correct answer ✔✔the process of identifying, measuring, analyzing,
and communicating financial information needed by management to plan, control and evaluate
a company's operations.
Financial statements - correct answer ✔✔most frequently provided are the balance sheet,
income statement, statement of cash flows and the statement of owner's or stockholders
equity.
Financial reporting - correct answer ✔✔examples include: president's letter or supplementary
schedules in the corporate annual report, prospectus, government agencies, news releases and
managements forecasts.
Objective of financial reporting - correct answer ✔✔to provide financial information about the
reporting entity that is useful to present and potential equity investors, lenders and other
creditors in decisions about providing resources to the entity.
General-purpose financial statements - correct answer ✔✔provide financial reporting
information to a wide variety of users for the least cost. also identifies investors and creditors as
the primary users for general-purpose financial statements.
Entity perspective - correct answer ✔✔companies are viewed as separate and distinct from
their owners.
,Decision-usefullness - correct answer ✔✔The ability of the information to be useful in decision
making - the company's ability to generate net cash flows and managements ability to protect
and enhance the capital providers investments.
Accrual based accounting - correct answer ✔✔ensures that a company records events that
change its financial statements in the periods in which the events occur, rather than only in the
periods in which it receives or pays cash
Generally accepted accounting principles - correct answer ✔✔common set of standard and
procedures. Generally accepted means either that an authoritative accounting rule making body
has established a principle of reporting gin a given area of that over time a given practice has
been accepted as appropriate because of its universal application.
Securities and exchange commission - correct answer ✔✔federal government established -
helped to develop and standardize information presented to stockholders. Listed on the stock
exchange.
American Institute of Certified Public Accountants - correct answer ✔✔national professional
organization of practicing CPA, has been an important contributor to development of GAAP.
Committee on Accounting Procedures (CAP) - correct answer ✔✔composed of practicing CPA's.
They issued 51 accounting research bulletins.
Accounting research bulletins - correct answer ✔✔deal with a variety of accounting problems.
But the problem to problem approach failed.
Accounting principles board - correct answer ✔✔major purposes were to advance the written
expression of accounting principles, determine appropriate practices and narrow the areas of
difference and inconsistency in practice.
,APB opinions - correct answer ✔✔intended to be based mainly on research studies and be
supported by reason and analysis
Wheat committee - correct answer ✔✔group that examined the organization and operation of
the APB and determined the necessary changes to attain better results; named after chair
Francis Wheat. Led to the replacement of APB with FASB.
Auditing Standards board - correct answer ✔✔sarbanes oxley act requires the public company
accounting oversight board to oversee the development of auditing standards
Financial accounting standards board - correct answer ✔✔It's mission is to establish and
improve standards of financial accounting and reporting for the guidance and education of the
public, which issue issuers, auditors, and users of financial information.
Financial Accounting Foundation - correct answer ✔✔To select members of the FASB and GASB
and their advisory councils, fund their activities, and exercise general oversight.
Financial accounting standards advisory council - correct answer ✔✔to consult on major policy
issues, technical issues, project priorities, and selection and organization of task forces.
Accounting standards updates - correct answer ✔✔These Updates amend the Accounting
Standards Codification, which represents the source of authoritative accounting standards,
other than standards issued by the SEC.
Emerging issues task force (EITF) - correct answer ✔✔Group created in 1984 by the FASB to
reach a consensus on how to account for new and unusual financial transactions that might
create differing financial reporting practices. The FASB reviews and approves all EITF
consensuses, and the SEC views consensus solutions as preferred accounting.
, Statements of financial accounting concepts - correct answer ✔✔The series sets forth
fundamental objectives and concepts that the board uses in developing future standards of
financial accounting and reporting. DOES not establish GAAP.
Financial accounting standards board accounting standards codification - correct answer
✔✔FASB's primary goal is to provide in one place all the authoritative literature related to a
particular topic.
Financial accounting standards board codification research system (CRS) - correct answer ✔✔An
online, real-time database that provides easy access to the Codification, through a topically
organized structure, subdivided into topics, subtopics, sections, and paragraphs, using a
numerical index system.
Sarbanes-Oxley Act - correct answer ✔✔increased the resources for the SEC to combat fraud
and curb poor reporting practices.
Public company accounting oversight board (PCAOB) - correct answer ✔✔has oversight and
enforcement authority and establishes auditing, quality control and independence standards
and rules.
The expectations gap - correct answer ✔✔what the public thinks accountants should do and
what accountants think they can do.
Non-financial information - correct answer ✔✔ex of satisfaction indexes, backlog info, reject
rates on goods purchased, results of companies sustainability efforts.
Forward-looking information - correct answer ✔✔Financial reports failed to provide forward-
looking information needed by present and potential investors and creditors. Signify their use of
historical cost and accumulation of past events.
Soft assets - correct answer ✔✔Intangibles. (brand image example)
already passed
Financial accounting - correct answer ✔✔process that culminates in the preparation of financial
reports on the enterprise for use by both internal and external parties.
Managerial accounting - correct answer ✔✔the process of identifying, measuring, analyzing,
and communicating financial information needed by management to plan, control and evaluate
a company's operations.
Financial statements - correct answer ✔✔most frequently provided are the balance sheet,
income statement, statement of cash flows and the statement of owner's or stockholders
equity.
Financial reporting - correct answer ✔✔examples include: president's letter or supplementary
schedules in the corporate annual report, prospectus, government agencies, news releases and
managements forecasts.
Objective of financial reporting - correct answer ✔✔to provide financial information about the
reporting entity that is useful to present and potential equity investors, lenders and other
creditors in decisions about providing resources to the entity.
General-purpose financial statements - correct answer ✔✔provide financial reporting
information to a wide variety of users for the least cost. also identifies investors and creditors as
the primary users for general-purpose financial statements.
Entity perspective - correct answer ✔✔companies are viewed as separate and distinct from
their owners.
,Decision-usefullness - correct answer ✔✔The ability of the information to be useful in decision
making - the company's ability to generate net cash flows and managements ability to protect
and enhance the capital providers investments.
Accrual based accounting - correct answer ✔✔ensures that a company records events that
change its financial statements in the periods in which the events occur, rather than only in the
periods in which it receives or pays cash
Generally accepted accounting principles - correct answer ✔✔common set of standard and
procedures. Generally accepted means either that an authoritative accounting rule making body
has established a principle of reporting gin a given area of that over time a given practice has
been accepted as appropriate because of its universal application.
Securities and exchange commission - correct answer ✔✔federal government established -
helped to develop and standardize information presented to stockholders. Listed on the stock
exchange.
American Institute of Certified Public Accountants - correct answer ✔✔national professional
organization of practicing CPA, has been an important contributor to development of GAAP.
Committee on Accounting Procedures (CAP) - correct answer ✔✔composed of practicing CPA's.
They issued 51 accounting research bulletins.
Accounting research bulletins - correct answer ✔✔deal with a variety of accounting problems.
But the problem to problem approach failed.
Accounting principles board - correct answer ✔✔major purposes were to advance the written
expression of accounting principles, determine appropriate practices and narrow the areas of
difference and inconsistency in practice.
,APB opinions - correct answer ✔✔intended to be based mainly on research studies and be
supported by reason and analysis
Wheat committee - correct answer ✔✔group that examined the organization and operation of
the APB and determined the necessary changes to attain better results; named after chair
Francis Wheat. Led to the replacement of APB with FASB.
Auditing Standards board - correct answer ✔✔sarbanes oxley act requires the public company
accounting oversight board to oversee the development of auditing standards
Financial accounting standards board - correct answer ✔✔It's mission is to establish and
improve standards of financial accounting and reporting for the guidance and education of the
public, which issue issuers, auditors, and users of financial information.
Financial Accounting Foundation - correct answer ✔✔To select members of the FASB and GASB
and their advisory councils, fund their activities, and exercise general oversight.
Financial accounting standards advisory council - correct answer ✔✔to consult on major policy
issues, technical issues, project priorities, and selection and organization of task forces.
Accounting standards updates - correct answer ✔✔These Updates amend the Accounting
Standards Codification, which represents the source of authoritative accounting standards,
other than standards issued by the SEC.
Emerging issues task force (EITF) - correct answer ✔✔Group created in 1984 by the FASB to
reach a consensus on how to account for new and unusual financial transactions that might
create differing financial reporting practices. The FASB reviews and approves all EITF
consensuses, and the SEC views consensus solutions as preferred accounting.
, Statements of financial accounting concepts - correct answer ✔✔The series sets forth
fundamental objectives and concepts that the board uses in developing future standards of
financial accounting and reporting. DOES not establish GAAP.
Financial accounting standards board accounting standards codification - correct answer
✔✔FASB's primary goal is to provide in one place all the authoritative literature related to a
particular topic.
Financial accounting standards board codification research system (CRS) - correct answer ✔✔An
online, real-time database that provides easy access to the Codification, through a topically
organized structure, subdivided into topics, subtopics, sections, and paragraphs, using a
numerical index system.
Sarbanes-Oxley Act - correct answer ✔✔increased the resources for the SEC to combat fraud
and curb poor reporting practices.
Public company accounting oversight board (PCAOB) - correct answer ✔✔has oversight and
enforcement authority and establishes auditing, quality control and independence standards
and rules.
The expectations gap - correct answer ✔✔what the public thinks accountants should do and
what accountants think they can do.
Non-financial information - correct answer ✔✔ex of satisfaction indexes, backlog info, reject
rates on goods purchased, results of companies sustainability efforts.
Forward-looking information - correct answer ✔✔Financial reports failed to provide forward-
looking information needed by present and potential investors and creditors. Signify their use of
historical cost and accumulation of past events.
Soft assets - correct answer ✔✔Intangibles. (brand image example)
