MGT6201 Accounting Practice Questions: Comprehensive Exam
Review, Key Concepts & Detailed Solutions.
Financial Accounting Providing meaningful, quantitative financial information in
order to enable decision making
FASB Financial Accounting Standards Board, non-profit organization
Determines good financial accounting rules for the US
SEC Securities and Exchange Commission, created by Congress
Regulates financial markets for stocks and bonds
GAAP Generally Accepted Accounting Principles
Combination of all the rules set by FASB, SEC, and Congress
Balance Sheet Describes the sources and uses of funds of a firm at a
snapshot in time.
Made up of
- Assets
- Liabilities
- Owners Equity
Assets On a balance sheet
Resources owned by a company that will have future
economic benefit
Asset = Liabilities + Owner's Equity
Examples
- Cash
- A/R
- Inventory
- Land/Buildings
Liabilities On a balance
sheet Future
obligations
Examples
- anything payable
Owner's Equity On a balance
sheet Ownership
interest
Owner's Equity = Capital Stock + Retained Earnings
Examples
- Retained Earnings
- Capital Stock
, - Preferred Stock
Review, Key Concepts & Detailed Solutions.
Financial Accounting Providing meaningful, quantitative financial information in
order to enable decision making
FASB Financial Accounting Standards Board, non-profit organization
Determines good financial accounting rules for the US
SEC Securities and Exchange Commission, created by Congress
Regulates financial markets for stocks and bonds
GAAP Generally Accepted Accounting Principles
Combination of all the rules set by FASB, SEC, and Congress
Balance Sheet Describes the sources and uses of funds of a firm at a
snapshot in time.
Made up of
- Assets
- Liabilities
- Owners Equity
Assets On a balance sheet
Resources owned by a company that will have future
economic benefit
Asset = Liabilities + Owner's Equity
Examples
- Cash
- A/R
- Inventory
- Land/Buildings
Liabilities On a balance
sheet Future
obligations
Examples
- anything payable
Owner's Equity On a balance
sheet Ownership
interest
Owner's Equity = Capital Stock + Retained Earnings
Examples
- Retained Earnings
- Capital Stock
, - Preferred Stock
