D196- Principles of Financial and Managerial Accounting Questions & Answers 2024/2025

D196- Principles of Financial and Managerial Accounting Questions & Answers 2024/2025 bookkeeping - ANSWER-day to day keeping of transactions steps of decision making - ANSWER-identify issue gather information identify alternatives select option that most likely results in desired objective accounting - ANSWER-analysis of events record and report financial effects of business activities where does capital come from (3) - ANSWER-investors creditors(lenders) business itself (from earnings retained) 2 main types of accounting - ANSWER-financial and managerial managerial accounting - ANSWER-gather and analysis of information for internal use and decision making. financial accounting - ANSWER-gather, report, analysis of information for external users- investors and creditors. summary of a business what does managerial accounting review - ANSWER-product cost, breakeven analysis, budgeting, performance analysis, outsource production what does financial accounting review - ANSWER-credit analysis, financial health, estimate value of the company examples of external financial reports for financial accounting - ANSWER-annual report, financial statement, balance sheet, income statement, statement of cash flow balance sheet - ANSWER-reports assets and liabilities. basic. list as of a point in time. as of today, as of yesterday income statement - ANSWER-how much did you, ake period of time - from nov to jan statement of cash flow - ANSWER-where did the cash come from and where did the cash go period of time - from nov to jan lender - ANSWER-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 investor - ANSWER-buys into your company. looks at if the business is profitable, what they are buying, buying obligations, potential future projections what forms will the manager of a business use - ANSWER-both financial and managerial fasb- what does it stand for, who are they and what do they do - ANSWER-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 gasb- what does it stand for, who are they, what do they do - ANSWER-governmental accounting standards board sets accounting and financial reporting standards for state and legal governments. authority over financial reporting by government entities 1 of the two boards that make up GAAP gaap - ANSWER-generally accepted accounting principles sec - ANSWER-Securities and Exchange Commission regulates us stock exchange. provides investors with full and fair information about publicly traded companies. legal punishment iasb - ANSWER-International Accounting Standards Board develop international accounting standards. made up of members from many countries aicpa - ANSWER-American institute of certified public accountants administers the cpa exam. enforces professional sanction by taking away cpa license when acted unethically. role and purpose of accounting - ANSWER-accumulate and report on financial information about performance, financial position, cash flow of a business. used to reach decisions about how to manage the business, invest in it, or lend money to it what is a balance sheet - ANSWER-statement of what they have and how they financed it at a specific point in time. balance sheet equation - ANSWER-assets = liabilities + owners’ equity what are assets and examples - ANSWER-what they own or control that will provide probable future benefits cash, accts receivable, inventory, buildings, land. what are liabilities and examples - ANSWER-what we owe. obligations that require future sacrifice. phone bill, car loan, accts payable, fed and state govt tax, mortgage, unearned revenue what is owners’ equity and examples - ANSWER-owners share, stockholders equity, how much owner originally invested in business + how much profit they have left Continues...