HRTM 421 - Exam 1 (Guaranteed Pass!)

Financial Accounting correct answers Focuses on financial statements (CFO/ Controller) Financial Accounting must present: correct answers - financial condition of the company - operating results Managerial Accounting correct answers Provides timely operating results Managerial Accounting focuses on: correct answers - Revenues and expenses - Maximizing operating performance - Looks at reports to make decisions FASB correct answers Financial Accounting Standards Board - Set up SEC correct answers Securities and Exchange Commission - Enforced GAAP correct answers Generally Accepted Accounting Principles - Govern all accounting and financial reporting - Tells you the rules Cost Principle correct answers All transactions must be recored AT COST Full Disclosure Principle correct answers Events that could impact a company's financial position should be reflected on financial statements or footnotes Revenue Recognition Principle correct answers Revenues should be recored in the MONTH they are EARNED Matching Principle correct answers All expenses incurred in generating a revenue should be recorded in the period the revenue EARNED Monetary Unit Principle correct answers Only transactions that can be expressed in terms of money can be shown on a company's financial statements Economic Entity Principle correct answers Separates the dealings of a business from the private dealings of it's owner Going Concern Principle correct answers Requires businesses to assume they will continue to operate long into the foreseeable future Time Period Principle correct answers The company must set specific time periods for measuring its financial results