1
D196- PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING QUESTIONS & CORRECT ANSWERS 100% PASS
Q. BOOKKEEPING
A. DAY TO DAY KEEPING OF TRANSCATIONS
Q. STEPS OF DECISION MAKING
A. IDENTIFY ISSUE
GATHER INFORMATION
IDENTIFY ALTERNATIVES
SELECT OPTION THAT MOST LIKELY RESULTS IN DESIRED OBJECTIVE
Q. ACCOUNTING
A. ANALYSIS OF EVENTS
RECORD AND REPORT FINANCIAL EFFECTS OF BUSINESS ACTIVITIES
Q. WHERE DOES CAPITAL COME FROM (3)
A. INVESTORS
CREDITORS(LENDERS)
BUSINESS ITSELF (FROM EARNINGS RETAINED)
Q. 2 MAIN TYPES OF ACCOUNTING
A. FINANCIAL AND MANAGERIAL
Q. MANAGERIAL ACCOUNTING
A. GATHER AND ANALYSIS OF INFORMATION FOR INTERNAL USE AND DECISION MAKING.
Q. FINANCIAL ACCOUNTING
A. GATHER, REPORT, ANALYSIS OF INFORMATION FOR EXTERNAL USERS- INVESTORS AND CREDITORS.
SUMMARY OF A BUSINESS
Q. WHAT DOES MANAGERIAL ACCOUNTING REVIEW
A. PRODUCT COST, BREAKEVEN ANALYSIS, BUDGETING, PERFORMANCE ANALYSIS, OUTSOURCE
PRODUCTION
Q. WHAT DOES FINANCIAL ACCOUNTING REVIEW
A. CREDIT ANALYSIS, FINANCIAL HEALTH, ESTIMATE VALUE OF THE COMPANY
,2
Q. EXAMPLES OF EXTERNAL FINANCIAL REPORTS FOR FINANCIAL ACCOUNTING
A. ANNUAL REPORT, FINANCIAL STATEMENT, BALANCE SHEET, INCOME STATEMENT, STATEMENT OF
CASH FLOW
Q. BALANCE SHEET
A. REPORTS ASSETS AND LIABILITIES. BASIC. LIST AS OF A POINT IN TIME. AS OF TODAY, AS OF
YESTERDAY
Q. INCOME STATEMENT
A. HOW MUCH DID YOU, AKE
PERIOD OF TIME - FROM NOV TO JAN
Q. STATEMENT OF CASH FLOW
A. WHERE DID THE CASH COME FROM AND WHERE DID THE CASH GO
PERIOD OF TIME - FROM NOV TO JAN
Q. LENDER
A. LENDS MONEY WITH INTEND TO GET IT BACK PLUS INTEREST. NEED CURRENT INCOME, EXISTING
OBLIGATIONS, EXISTING ASSETS, PAYROLL STUB, TAX RETURN, MONTHLY PAYMENTS, BANK STMTS
Q. INVESTOR
A. BUYS INTO YOUR COMPANY. LOOKS AT IF THE BUSINESS IS PROFITABLE, WHAT THEY ARE BUYING,
BUYING OBLIGATIONS, POTENTIAL FUTURE PROJECTIONS
Q. WHAT FORMS WILL THE MANAGER OF A BUSINESS USE
A. BOTH FINANCIAL AND MANAGERIAL
Q. FASB- WHAT DOES IT STAND FOR, WHO ARE THEY AND WHAT DO THEY DO
A. FINANCIAL ACCOUNTING STANDARDS BOARD
PRIVATE GROUP, NOT GOVT AGENCY, NO LEGAL AUTHORITY, CONDUCTED OF PEOPLE FROM A VARIETY
OF BUSINESS RELATED BACKGROUNDS.
ESTABLISHES FINANCIAL ACCOUNTING AND REPORTING STANDARDS FOR PRIVATE SECTOR COMPANIES
1 OF THE TWO BOARDS THAT MAKE UP GAAP
Q. GASB- WHAT DOES IT STAND FOR, WHO ARE THEY, WHAT DO THEY DO
A. GOVERNMENTAL ACCOUNTING STANDARDS BOARD
SETS ACCOUNTING AND FINANCIAL REPORTING STANDARDS FOR STATE AND LEGAL GOVERNMENTS.
, 3
AUTHORITY OVER FINANCIAL REPORTING BY GOVERNMENT ENTITIES
1 OF THE TWO BOARDS THAT MAKE UP GAAP
Q. GAAP
A. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
Q. SEC
A. SECURITIES AND EXCHANGE COMMISSION
REGULATES US STOCK EXCHANGE. PROVIDES INVESTORS WITH FULL AND FAIR INFORMATION ABOUT
PUBLICLY TRADED COMPANIES.
LEGAL PUNISHMENT
Q. IASB
A. INTERNATIONAL ACCOUNTING STANDARDS BOARD
DEVELOP INTERNATIONAL ACCOUNTING STANDARDS. MADE UP OF MEMBERS FROM MANY COUNTRIES
Q. AICPA
A. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ADMINISTERS THE CPA EXAM.
ENFORCES PROFESSIONAL SANCTION BY TAKING AWAY CPA LICENSE WHEN ACTED UNETHICALLY.
Q. ROLE AND PURPOSE OF ACCOUNTING
A. ACCUMULATE AND REPORT ON FINANCIAL INFORMATION ABOUT PERFORMANCE, FINANCIAL
POSITION, AND CASH FLOW OF A BUSINESS. USED TO REACH DECISIONS ABOUT HOW TO MANAGE THE
BUSINESS, INVEST IN IT, OR LEND MONEY TO IT
Q. WHAT IS A BALANCE SHEET
A. STATEMENT OF WHAT THEY HAVE AND HOW THEY FINANCED IT AT A SPECIFIC POINT IN TIME.
Q. BALANCE SHEET EQUATION
A. ASSETS = LIABILITIES + OWNERS EQUITY
Q. WHAT ARE ASSETS AND EXAMPLES
A. WHAT THEY OWN OR CONTROL THAT WILL PROVIDE PROBABLE FUTURE BENEFITS
CASH, ACCTS RECEIVABLE, INVENTORY, BUILDINGS, LAND.
Q. WHAT ARE LIABILITIES AND EXAMPLES
A. WHAT WE OWE. OBLIGATIONS THAT REQUIRE FUTURE SACRIFICE.
D196- PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING QUESTIONS & CORRECT ANSWERS 100% PASS
Q. BOOKKEEPING
A. DAY TO DAY KEEPING OF TRANSCATIONS
Q. STEPS OF DECISION MAKING
A. IDENTIFY ISSUE
GATHER INFORMATION
IDENTIFY ALTERNATIVES
SELECT OPTION THAT MOST LIKELY RESULTS IN DESIRED OBJECTIVE
Q. ACCOUNTING
A. ANALYSIS OF EVENTS
RECORD AND REPORT FINANCIAL EFFECTS OF BUSINESS ACTIVITIES
Q. WHERE DOES CAPITAL COME FROM (3)
A. INVESTORS
CREDITORS(LENDERS)
BUSINESS ITSELF (FROM EARNINGS RETAINED)
Q. 2 MAIN TYPES OF ACCOUNTING
A. FINANCIAL AND MANAGERIAL
Q. MANAGERIAL ACCOUNTING
A. GATHER AND ANALYSIS OF INFORMATION FOR INTERNAL USE AND DECISION MAKING.
Q. FINANCIAL ACCOUNTING
A. GATHER, REPORT, ANALYSIS OF INFORMATION FOR EXTERNAL USERS- INVESTORS AND CREDITORS.
SUMMARY OF A BUSINESS
Q. WHAT DOES MANAGERIAL ACCOUNTING REVIEW
A. PRODUCT COST, BREAKEVEN ANALYSIS, BUDGETING, PERFORMANCE ANALYSIS, OUTSOURCE
PRODUCTION
Q. WHAT DOES FINANCIAL ACCOUNTING REVIEW
A. CREDIT ANALYSIS, FINANCIAL HEALTH, ESTIMATE VALUE OF THE COMPANY
,2
Q. EXAMPLES OF EXTERNAL FINANCIAL REPORTS FOR FINANCIAL ACCOUNTING
A. ANNUAL REPORT, FINANCIAL STATEMENT, BALANCE SHEET, INCOME STATEMENT, STATEMENT OF
CASH FLOW
Q. BALANCE SHEET
A. REPORTS ASSETS AND LIABILITIES. BASIC. LIST AS OF A POINT IN TIME. AS OF TODAY, AS OF
YESTERDAY
Q. INCOME STATEMENT
A. HOW MUCH DID YOU, AKE
PERIOD OF TIME - FROM NOV TO JAN
Q. STATEMENT OF CASH FLOW
A. WHERE DID THE CASH COME FROM AND WHERE DID THE CASH GO
PERIOD OF TIME - FROM NOV TO JAN
Q. LENDER
A. LENDS MONEY WITH INTEND TO GET IT BACK PLUS INTEREST. NEED CURRENT INCOME, EXISTING
OBLIGATIONS, EXISTING ASSETS, PAYROLL STUB, TAX RETURN, MONTHLY PAYMENTS, BANK STMTS
Q. INVESTOR
A. BUYS INTO YOUR COMPANY. LOOKS AT IF THE BUSINESS IS PROFITABLE, WHAT THEY ARE BUYING,
BUYING OBLIGATIONS, POTENTIAL FUTURE PROJECTIONS
Q. WHAT FORMS WILL THE MANAGER OF A BUSINESS USE
A. BOTH FINANCIAL AND MANAGERIAL
Q. FASB- WHAT DOES IT STAND FOR, WHO ARE THEY AND WHAT DO THEY DO
A. FINANCIAL ACCOUNTING STANDARDS BOARD
PRIVATE GROUP, NOT GOVT AGENCY, NO LEGAL AUTHORITY, CONDUCTED OF PEOPLE FROM A VARIETY
OF BUSINESS RELATED BACKGROUNDS.
ESTABLISHES FINANCIAL ACCOUNTING AND REPORTING STANDARDS FOR PRIVATE SECTOR COMPANIES
1 OF THE TWO BOARDS THAT MAKE UP GAAP
Q. GASB- WHAT DOES IT STAND FOR, WHO ARE THEY, WHAT DO THEY DO
A. GOVERNMENTAL ACCOUNTING STANDARDS BOARD
SETS ACCOUNTING AND FINANCIAL REPORTING STANDARDS FOR STATE AND LEGAL GOVERNMENTS.
, 3
AUTHORITY OVER FINANCIAL REPORTING BY GOVERNMENT ENTITIES
1 OF THE TWO BOARDS THAT MAKE UP GAAP
Q. GAAP
A. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
Q. SEC
A. SECURITIES AND EXCHANGE COMMISSION
REGULATES US STOCK EXCHANGE. PROVIDES INVESTORS WITH FULL AND FAIR INFORMATION ABOUT
PUBLICLY TRADED COMPANIES.
LEGAL PUNISHMENT
Q. IASB
A. INTERNATIONAL ACCOUNTING STANDARDS BOARD
DEVELOP INTERNATIONAL ACCOUNTING STANDARDS. MADE UP OF MEMBERS FROM MANY COUNTRIES
Q. AICPA
A. AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ADMINISTERS THE CPA EXAM.
ENFORCES PROFESSIONAL SANCTION BY TAKING AWAY CPA LICENSE WHEN ACTED UNETHICALLY.
Q. ROLE AND PURPOSE OF ACCOUNTING
A. ACCUMULATE AND REPORT ON FINANCIAL INFORMATION ABOUT PERFORMANCE, FINANCIAL
POSITION, AND CASH FLOW OF A BUSINESS. USED TO REACH DECISIONS ABOUT HOW TO MANAGE THE
BUSINESS, INVEST IN IT, OR LEND MONEY TO IT
Q. WHAT IS A BALANCE SHEET
A. STATEMENT OF WHAT THEY HAVE AND HOW THEY FINANCED IT AT A SPECIFIC POINT IN TIME.
Q. BALANCE SHEET EQUATION
A. ASSETS = LIABILITIES + OWNERS EQUITY
Q. WHAT ARE ASSETS AND EXAMPLES
A. WHAT THEY OWN OR CONTROL THAT WILL PROVIDE PROBABLE FUTURE BENEFITS
CASH, ACCTS RECEIVABLE, INVENTORY, BUILDINGS, LAND.
Q. WHAT ARE LIABILITIES AND EXAMPLES
A. WHAT WE OWE. OBLIGATIONS THAT REQUIRE FUTURE SACRIFICE.
