A304 Exam 1
Study online at https://quizlet.com/_ivn5ul
1. what are the 2 primary functions of financial accounting?: -to measure business
activities
-to communicate to EXTERNAL users
2. what is the focus on financial accounting?: big picture, historical results
3. what are the business activities financial accounting measures?: financing, operat-
ing, investing
4. accounting equation: Assets = Liabilities + Stockholders' Equity
5. stockholders equity includes...: common stock and retained earnings
6. Order in which financial statements are prepared: 1. Income Statement
1+. Statement of Comprehensive Income
2. Statement of Stockholders' Equity
3. Balance Sheet
4. Statement of Cash Flows
7. Income Statement: Revenues - Expenses = Net Income
8. Statement of Stockholders' Equity: beginning retained earnings
+net income
-dividends
=ending retained earnings
9. Statement of Cash Flows equation: beginning cash
+/- business activity costs
=ending cash
10. Statement of Comprehensive Income: net income
+other com
11. What role does accounting play in decision making?: estimation, judgement
12. SEC (Securities and Exchange Commission): gave Congress the power to require periodic
financial statements for public companies
13. FASB (Financial Accounting Standards Board): private board that establishes the generally
accepted accounting principles
14. PCACB: created by SOX to oversee the audits of public companies
15. What financial statements are prepared annually?: Form 10K and Def 14A "Proxy"
16. What financial statement is prepared quarterly?: Form 10Q
1/3
Study online at https://quizlet.com/_ivn5ul
1. what are the 2 primary functions of financial accounting?: -to measure business
activities
-to communicate to EXTERNAL users
2. what is the focus on financial accounting?: big picture, historical results
3. what are the business activities financial accounting measures?: financing, operat-
ing, investing
4. accounting equation: Assets = Liabilities + Stockholders' Equity
5. stockholders equity includes...: common stock and retained earnings
6. Order in which financial statements are prepared: 1. Income Statement
1+. Statement of Comprehensive Income
2. Statement of Stockholders' Equity
3. Balance Sheet
4. Statement of Cash Flows
7. Income Statement: Revenues - Expenses = Net Income
8. Statement of Stockholders' Equity: beginning retained earnings
+net income
-dividends
=ending retained earnings
9. Statement of Cash Flows equation: beginning cash
+/- business activity costs
=ending cash
10. Statement of Comprehensive Income: net income
+other com
11. What role does accounting play in decision making?: estimation, judgement
12. SEC (Securities and Exchange Commission): gave Congress the power to require periodic
financial statements for public companies
13. FASB (Financial Accounting Standards Board): private board that establishes the generally
accepted accounting principles
14. PCACB: created by SOX to oversee the audits of public companies
15. What financial statements are prepared annually?: Form 10K and Def 14A "Proxy"
16. What financial statement is prepared quarterly?: Form 10Q
1/3
