Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
ACCT 105: Widener
Financial Accounting
| Question | Answer |
|---|---|
| Traditional Role of Financial Accounting | prepare tax returns, financial statements, and information trackers |
| Financial Position | where it stands financially and what it owns |
| Profitability | is it making money or incurring losses |
| Fundamental Qualities of Information | relevance and faithful representation |
| Relevance Contains What | predictive value (future looking, future trends) and confirmatory value (confirm or correct past predictions) |
| Faithful Representation Contains What | neutral (unbiased), free from error (accurate), completeness (all information given, full disclosure) |
| How is the Information Reported in the Financial Statements | income statements (IS), statement of retained earnings (state of RE), and balance sheet (BS) |
| Who are the Primary External Users of Accounting Information | shareholders, investors, creditors tender, government agency, competitors |
| Who are the Primary Internal Users of Accounting Information | manager, employees, board of directors, CFO, CEO |
| What Organization is Primarily Responsible for Establishing Financial Reporting Standards / Rules in the U.S. | financial accounting standards board (FASB) |
| Is the FASB a Government Organization | no, it is an independent rule-making body |
| What Organization Currently Establishes International Financial Reporting Standards (IFRS) | international accounting standards board (IASB) |
| Why are There Financial Reporting Standards / Rules | for consistency and comparability |
| Must All Companies in Every Industry use the Same Financial Reporting Standards / Rules | yes, with some specific application per industry |
| What Government Agency had Regulatory Responsibility for the Financial Information Issued by Companies Whose Stock is Publicly Traded | securities and exchange commission (SEC) |
| In 2002, what Act was Passes that Continues to have Major Impact on the Accounting and Auditing Profession | sarbanes-oxley act (SOX) |
| Why was this Act Passed in 2002 | in response to financial reporting problems which resulted in large financial losses to investors and creditors |
| How has this 2002 Act Affected Corporate Management | it places additional responsibilities on CEO, CFOs, and top management to certify the fairness of the company's financial statements |
| Who is Responsible for the Financial Statements Issued by a Corporation | management of corporation |
| PCAOB | public company accounting oversight board |
| What is the Purpose of the PCAOB | it oversees the accounting profession, sets auditing standards for audits of publicly traded companies. group created by the sarbanes-oxley legislation |
| The PCAOB establishes U.S. _____ | auditing standards |
| The _____ establishes U.S. _____ | FASB / GAAP (generally accepted accounting principles / the rules, if you will) |
| Recording | entering information into accounting records (ledgers, journals) |
| Classifying | group transations into categories |
| Assets, Liabilities, and Stockholders Equity go on what Financial Statement | balance sheet |
| Revenue and Expenses go on what Finanical Statement | income statement |
| Dividends go on what Financial Statement | statement of retained earnings |
| Summarizing | totaling various account groups |
| Reporting | showing totals on financial statements |
| Interpreting | analyzing information to determine its meaning(s) |
| What is Financial Accounting | primarily focuses on reporting to external users of the financial statements |
| What is Managerial Accounting | primarily focuses on reporting to internal users of the financial statements |
Created by:
sdavis801
Popular Accounting sets