SDA Exam - CDFA - Accounting and Financial UPDATED ACTUAL Questions
and CORRECT Answers
FASB Financial Accounting Standards Board
IFRS International Financial Reporting Standards
GAAP Generally Accepted Accounting Principles
Information about the firm's financial circumstances at a
Balance Sheet
particular time, and info about the owner's equity.
How much the firm has earned, and operational perfor-
mance.
Income Statement financial statement that shows a firm's bottom line - that
is, its profit after costs, expenses, and taxes
also called a profit & loss statement
specifics about cash received and used.
tells a story about the inflow and outflow of cash within a
firm for a specific period.
Cash Flow Statement
It shows how changes in both the balance sheet and
income statement affect the cash accounts in the firm.
It analyzes the sources of cash as well as how it is used.
revenue and expenses are recognized as they occur, re-
Accrual-based accounting
gardless of the timing of actual cash exchange.
revenue and expenses are recognized as cash is actually
Cash-based accounting
exchanged.
Assumes that the business is separate and distinct from
Business Entity Principle
the individual
list of all possible general ledger categories to which the
Chart of Accounts
,firm posts transactions
, Depreciation allocates the cost of an item over its life expectancy
can be charged to a project/client.
Reimbursable Expense - listed as a line item on the invoice
Direct Expenses with markup.
Direct Expense - charged as part of the overall fee, not
listed as a separate item.
part of the overhead that is billed out to clients. Examples:
Personnel
General
Indirect Expense
Administrative
rent, indirect salaries, supplies, utilities, and insurance
every financial transaction has equal and opposite effects
Double Entry Bookeeping
in at least two accounts
Accounting Equation - Balance Sheet Assets = Liabilities + Owner's Equity
Accounting Equation - Income Statement Revenues - Expenses = Net Income
In double entry accounting, debits must equal.... credits
Increases in assets are done with debits
Increases in liabilities and/or equity are done with credits
Increases in revenues are done with credits
Increases in expenses are done with debits
Journals - General & Subsidiary original entries of transactions
Summary of accounts and accounting transactions.
General Ledger
Financial statements represent summaries of the general
ledger.
and CORRECT Answers
FASB Financial Accounting Standards Board
IFRS International Financial Reporting Standards
GAAP Generally Accepted Accounting Principles
Information about the firm's financial circumstances at a
Balance Sheet
particular time, and info about the owner's equity.
How much the firm has earned, and operational perfor-
mance.
Income Statement financial statement that shows a firm's bottom line - that
is, its profit after costs, expenses, and taxes
also called a profit & loss statement
specifics about cash received and used.
tells a story about the inflow and outflow of cash within a
firm for a specific period.
Cash Flow Statement
It shows how changes in both the balance sheet and
income statement affect the cash accounts in the firm.
It analyzes the sources of cash as well as how it is used.
revenue and expenses are recognized as they occur, re-
Accrual-based accounting
gardless of the timing of actual cash exchange.
revenue and expenses are recognized as cash is actually
Cash-based accounting
exchanged.
Assumes that the business is separate and distinct from
Business Entity Principle
the individual
list of all possible general ledger categories to which the
Chart of Accounts
,firm posts transactions
, Depreciation allocates the cost of an item over its life expectancy
can be charged to a project/client.
Reimbursable Expense - listed as a line item on the invoice
Direct Expenses with markup.
Direct Expense - charged as part of the overall fee, not
listed as a separate item.
part of the overhead that is billed out to clients. Examples:
Personnel
General
Indirect Expense
Administrative
rent, indirect salaries, supplies, utilities, and insurance
every financial transaction has equal and opposite effects
Double Entry Bookeeping
in at least two accounts
Accounting Equation - Balance Sheet Assets = Liabilities + Owner's Equity
Accounting Equation - Income Statement Revenues - Expenses = Net Income
In double entry accounting, debits must equal.... credits
Increases in assets are done with debits
Increases in liabilities and/or equity are done with credits
Increases in revenues are done with credits
Increases in expenses are done with debits
Journals - General & Subsidiary original entries of transactions
Summary of accounts and accounting transactions.
General Ledger
Financial statements represent summaries of the general
ledger.
