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
Financial Acct Ex 1
Ivy Tech-Bloomington, book: Financial Accounting
| Question | Answer |
|---|---|
| Who are the users of Financial Accounting information? | Investors, Creditors, and Regulatory Bodies |
| What are examples of Regulatory Bodies that use Financial Accounting information? | IRS, SEC (US Securities & Exchange Commission, State Department of Revenue. |
| What is the GAAP? | Generally Accepted Accounting Principles |
| Who establishes the GAAP? | The Financial Accounting Standards Board. |
| What characteristic of financial information means the information must be readily understandable to users of the financial statements? | Understandability |
| What characteristic of financial information means the information must be relevant to the needs of the users? | Relevance |
| What characteristic of financial information means the information must be free of material error and bias, and not misleading? | Reliability |
| What characteristic of financial information means the information must be comparable to the financial information presented for other accounting periods, so that users can identify trends in the performance and the financial position? | Comparability |
| What characteristic of financial information is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. | Materiality |
| What are the 5 qualitative characteristics of financial information? | Understandability, Relevance, Reliability, Comparability, Materiality |
| What is the accounting equation? | Assets = Liabilities + Owner's Equity |
| To calculate Retained Earnings: Beg R/E + Net Income/- Net Loss -_____________ =Ending Retained Earnings | DIVIDENDS |
| Which 2 financial statements does net income appear? | Income Statement and Statement of Retained Earnings |
| Name the 3 sections of the Statement of Cash Flows. | Operating, Investing, and Financing |
| A record of an economic/financial event on a business that can be reliably measured. | A journal entry. |
| How does income statement data appear under the Retained Earnings classification? | Revenues and Expenses |
| Define the balance in an account. | The amount remaining. |
| How many accounts can a journal entry have? | There is no limit, it just has to balance. |
| Does accrual accounting record CASH transactions as well as NON-CASH transactions? | Yes |
| What is the primary means by which fraud and unintentional financial statement errors are prevented? | Internal Control |
| Assets should be recorded at their actual costs on the date of purchase. | Cost Principle |
| What are the 2 main components of Stockholder's Equity? | Retained Earnings and Pain in Capital |
| At least one account is debited and at least one account is debited is the definition of ________________. | Double-entry accounting |
| An accounting period ending other than December 31. | Fiscal Year |
| What kind of entry is prepared at the end of the accounting period to update certain accounts? | Adjusting Entry |
| What are 3 basic categories of adjusting entries? | Depreciation, Deferrals, and Accruals |
| What is the purpose of a closing entry? | To transfer revenue, expenses, and dividends to retained earnings. |
| How do you compute the Current Ratio? | Current Assets/Current Liabilities |
| What are the 3 main components of a fraud triangle? | Rationalization, Opportunity, and Motive |
Created by:
100001123651952
Popular Accounting sets