MGMT 200 Midterm 1 || WITH 100% PASSED
ANSWERS.
information provided for internal users is managerial or financial accounting correct answers
managerial
information provided for external users is managerial or financial accounting correct answers
financial accounting
transactions the company has with investors and creditors are what activities correct answers
financial activities
transactions that relate to the primary operations of the company are what activiites correct
answers operating activites
transactions involving the purchase and sale of resources that provide benefit for several
years are what activities correct answers investing activities
What is the basic Accounting Equation correct answers Assets = Liabilities + Stockholders'
Equity
Balance Sheet reports what correct answers the resources of a company (the assets), the
company's obligations (the liabilities), and the equity of the owners
Income Statement reports what correct answers the net assets generated through business
operations (revenues), the assets consumed (the expenses), and the difference, which is called
net income
activities related to borrowing, their measure category is correct answers liabilities
activities related to stockholders' investment, their measure category is correct answers
stockholders' equity
activities related to distributions to stockholders, their measure category is correct answers
dividends
activities related to resources of the company, their measure category is correct answers
assets
activities related to sales of the company, their measure category is correct answers revenues
activities related to costs of selling to customers, their measure category is correct answers
expenses
statement of stockholders' equity summarizes what correct answers summarizes the changes
in stockholders' equity over an interval of time ( = common stock + retained earnings)
statement of cash flows measures what three categories correct answers - operating cash
flows
, - investing cash flows
- financing cash flows
Who was given specific legal authority to establish accounting standards for companies
desiring to publicly issue shares in the US correct answers The Securities and Exchange
Commission (SEC)
GAAP is an acronym for what correct answers generally accepted accounting principles
What Board is currently recognized as the private-sector body responsible for the
establishment of the US accounting standards correct answers The Financial Accounting
Standards Board (FASB)
IASB is an acronym for what correct answers International Accounting Standards Board
In 1973, the following private-sector body was organized to set accounting standards in the
US: correct answers the FASB
Primary responsibility for GAAP and public reporting currently rests with the: correct
answers SEC
Business activities with another separate economic entity including the events that transfer or
change goods or services between or among two or more entities is what kind of transaction
correct answers External Transactions:
events that affect the financial position of the company but don't include an exchange with
another separate economic entity are what kind of transactions correct answers Internal
transactions
Cash, Supplies, and Equipment go under what kind of accounts correct answers Asset
accounts
accounts payable, salaries payable, utilities payable, taxes payable go under what accounts
correct answers Liability accounts
common stock and retained earnings go under what accounts correct answers Stockholders'
equity accounts
Net Income ___ Retained Earnings hence Stockholders' Equity correct answers Increases
Net loss ___ Retained Earnings hence Stockholders' Equity correct answers decreases
Dividends ___ Retained Earnings hence Stockholders' Equity correct answers decreases
What would be the effect on total assets if a company purchased land for $200,000 cash?
correct answers There would be zero effect on total assets
What effect does the payment of dividends have on the accounting equation? correct answers
Assets decrease and equity decreases
ANSWERS.
information provided for internal users is managerial or financial accounting correct answers
managerial
information provided for external users is managerial or financial accounting correct answers
financial accounting
transactions the company has with investors and creditors are what activities correct answers
financial activities
transactions that relate to the primary operations of the company are what activiites correct
answers operating activites
transactions involving the purchase and sale of resources that provide benefit for several
years are what activities correct answers investing activities
What is the basic Accounting Equation correct answers Assets = Liabilities + Stockholders'
Equity
Balance Sheet reports what correct answers the resources of a company (the assets), the
company's obligations (the liabilities), and the equity of the owners
Income Statement reports what correct answers the net assets generated through business
operations (revenues), the assets consumed (the expenses), and the difference, which is called
net income
activities related to borrowing, their measure category is correct answers liabilities
activities related to stockholders' investment, their measure category is correct answers
stockholders' equity
activities related to distributions to stockholders, their measure category is correct answers
dividends
activities related to resources of the company, their measure category is correct answers
assets
activities related to sales of the company, their measure category is correct answers revenues
activities related to costs of selling to customers, their measure category is correct answers
expenses
statement of stockholders' equity summarizes what correct answers summarizes the changes
in stockholders' equity over an interval of time ( = common stock + retained earnings)
statement of cash flows measures what three categories correct answers - operating cash
flows
, - investing cash flows
- financing cash flows
Who was given specific legal authority to establish accounting standards for companies
desiring to publicly issue shares in the US correct answers The Securities and Exchange
Commission (SEC)
GAAP is an acronym for what correct answers generally accepted accounting principles
What Board is currently recognized as the private-sector body responsible for the
establishment of the US accounting standards correct answers The Financial Accounting
Standards Board (FASB)
IASB is an acronym for what correct answers International Accounting Standards Board
In 1973, the following private-sector body was organized to set accounting standards in the
US: correct answers the FASB
Primary responsibility for GAAP and public reporting currently rests with the: correct
answers SEC
Business activities with another separate economic entity including the events that transfer or
change goods or services between or among two or more entities is what kind of transaction
correct answers External Transactions:
events that affect the financial position of the company but don't include an exchange with
another separate economic entity are what kind of transactions correct answers Internal
transactions
Cash, Supplies, and Equipment go under what kind of accounts correct answers Asset
accounts
accounts payable, salaries payable, utilities payable, taxes payable go under what accounts
correct answers Liability accounts
common stock and retained earnings go under what accounts correct answers Stockholders'
equity accounts
Net Income ___ Retained Earnings hence Stockholders' Equity correct answers Increases
Net loss ___ Retained Earnings hence Stockholders' Equity correct answers decreases
Dividends ___ Retained Earnings hence Stockholders' Equity correct answers decreases
What would be the effect on total assets if a company purchased land for $200,000 cash?
correct answers There would be zero effect on total assets
What effect does the payment of dividends have on the accounting equation? correct answers
Assets decrease and equity decreases
