C213 Accounting for Decision Makers-2
WGU
Understanding of a business increases as one associates the individual asset,
liability, and equity accounts with the underlying business activities that give rise
to them. T/F - CORRECT ANSWER-True
Assets and liabilities are generally classified as _______________ or _________
__________. - CORRECT ANSWER-current or long term.
Current Asset - CORRECT ANSWER-one that is expected to be used within one
year of the balance sheet date.
Long term assets include - CORRECT ANSWER-property, plant and equipment,
investments in other companies, and bonds or notes receivable
Current Liabilities - CORRECT ANSWER-liabilities due within a short time,
usually within a year
long-term debt - CORRECT ANSWER-a liability that falls due beyond one year
from the date of the financial statements
Companies can issue what two kinds of stock? - CORRECT ANSWER-common
and preferred
Common stockholders are the true owners of a business. T/F - CORRECT
ANSWER-True
Preferred stockholders give up some of the rights of ownership enjoyed by
common stockholders in exchange for some of the safety promised to creditors.
T/F - CORRECT ANSWER-True
,Companies usually provide balance sheets for at least __________ years, with
the statements shown in comparative, side-by-side format. - CORRECT
ANSWER-Two
The first item in a U.S. balance sheet is usually __________. - CORRECT
ANSWER-Cash
The first item in a NON-U.S. countries balance sheet is usually
________________________. - CORRECT ANSWER-Long term assets
The order of presentation in a standard balance sheet is? - CORRECT
ANSWER-current assets, long-term assets, current liabilities, long-term liabilities,
and stockholders' equity
What is the difference between current assets and liabilities called? - CORRECT
ANSWER-Working capital
Recognition - CORRECT ANSWER-the process of condensing all estimates and
judgments into one number and reporting that one number in the formal financial
statements.
Disclosure - CORRECT ANSWER-describing details in a narrative note.
____________________ is the preferred method of reporting financial
information. - CORRECT ANSWER-Recognition
Individual transactions impacting balance sheets can be analyzed by
remembering that the accounting equation (_________=__________ +
___________) is always maintained. - CORRECT ANSWER-Assets = Liabilities
+ Owners' Equity
Transaction analysis - CORRECT ANSWER-the process of determining how an
economic event impacts financial statements.
The discipline imposed by the mathematical necessity of maintaining the
accounting equation helps to ensure that all dimensions of the impact of an event
on financial statements have been considered. T/F - CORRECT ANSWER-True
, Transaction analysis is NOT a useful exercise in critically and systematically
analyzing the impact of business events on a company's reported financial
performance and position. T/F - CORRECT ANSWER-False. Transaction is very
useful
Asset Mix - CORRECT ANSWER-The proportion of total assets in each asset
category, is determined to a large degree by the industry in which the company
operates.
Net Income - CORRECT ANSWER-The amount by which revenues exceed
expenses.
The primary categories of income statement items are - CORRECT
ANSWER-revenues, expenses, gains, and losses.
Income statement items that do not relate to a company's continuing operations
are - CORRECT ANSWER-income from discontinued operations and
extraordinary items.
Individual transactions impacting income can be analyzed using the expanded
accounting equation, which is: - CORRECT ANSWER-Assets = Liabilities +
Paid-in Capital + (Revenues - Expenses - Dividends)
An important use of an income statement is to - CORRECT ANSWER-forecast
income in future periods.
Good forecasting requires an understanding of - CORRECT ANSWER-what
underlying factors determine the level of a revenue or an expense.
Accrual accounting - CORRECT ANSWER-the process that accountants use in
adjusting raw transaction data into refined measures of a firm's economic
performance.
One of the important economic contributions made by accountants is the
collection of accrual accounting rules which, when applied to a company's raw
cash flow data,
WGU
Understanding of a business increases as one associates the individual asset,
liability, and equity accounts with the underlying business activities that give rise
to them. T/F - CORRECT ANSWER-True
Assets and liabilities are generally classified as _______________ or _________
__________. - CORRECT ANSWER-current or long term.
Current Asset - CORRECT ANSWER-one that is expected to be used within one
year of the balance sheet date.
Long term assets include - CORRECT ANSWER-property, plant and equipment,
investments in other companies, and bonds or notes receivable
Current Liabilities - CORRECT ANSWER-liabilities due within a short time,
usually within a year
long-term debt - CORRECT ANSWER-a liability that falls due beyond one year
from the date of the financial statements
Companies can issue what two kinds of stock? - CORRECT ANSWER-common
and preferred
Common stockholders are the true owners of a business. T/F - CORRECT
ANSWER-True
Preferred stockholders give up some of the rights of ownership enjoyed by
common stockholders in exchange for some of the safety promised to creditors.
T/F - CORRECT ANSWER-True
,Companies usually provide balance sheets for at least __________ years, with
the statements shown in comparative, side-by-side format. - CORRECT
ANSWER-Two
The first item in a U.S. balance sheet is usually __________. - CORRECT
ANSWER-Cash
The first item in a NON-U.S. countries balance sheet is usually
________________________. - CORRECT ANSWER-Long term assets
The order of presentation in a standard balance sheet is? - CORRECT
ANSWER-current assets, long-term assets, current liabilities, long-term liabilities,
and stockholders' equity
What is the difference between current assets and liabilities called? - CORRECT
ANSWER-Working capital
Recognition - CORRECT ANSWER-the process of condensing all estimates and
judgments into one number and reporting that one number in the formal financial
statements.
Disclosure - CORRECT ANSWER-describing details in a narrative note.
____________________ is the preferred method of reporting financial
information. - CORRECT ANSWER-Recognition
Individual transactions impacting balance sheets can be analyzed by
remembering that the accounting equation (_________=__________ +
___________) is always maintained. - CORRECT ANSWER-Assets = Liabilities
+ Owners' Equity
Transaction analysis - CORRECT ANSWER-the process of determining how an
economic event impacts financial statements.
The discipline imposed by the mathematical necessity of maintaining the
accounting equation helps to ensure that all dimensions of the impact of an event
on financial statements have been considered. T/F - CORRECT ANSWER-True
, Transaction analysis is NOT a useful exercise in critically and systematically
analyzing the impact of business events on a company's reported financial
performance and position. T/F - CORRECT ANSWER-False. Transaction is very
useful
Asset Mix - CORRECT ANSWER-The proportion of total assets in each asset
category, is determined to a large degree by the industry in which the company
operates.
Net Income - CORRECT ANSWER-The amount by which revenues exceed
expenses.
The primary categories of income statement items are - CORRECT
ANSWER-revenues, expenses, gains, and losses.
Income statement items that do not relate to a company's continuing operations
are - CORRECT ANSWER-income from discontinued operations and
extraordinary items.
Individual transactions impacting income can be analyzed using the expanded
accounting equation, which is: - CORRECT ANSWER-Assets = Liabilities +
Paid-in Capital + (Revenues - Expenses - Dividends)
An important use of an income statement is to - CORRECT ANSWER-forecast
income in future periods.
Good forecasting requires an understanding of - CORRECT ANSWER-what
underlying factors determine the level of a revenue or an expense.
Accrual accounting - CORRECT ANSWER-the process that accountants use in
adjusting raw transaction data into refined measures of a firm's economic
performance.
One of the important economic contributions made by accountants is the
collection of accrual accounting rules which, when applied to a company's raw
cash flow data,
