Intermediate Accounting (Chapter 1-5) Final Exam
Don't know?
Terms in this set (160)
Financial Accounting creates the financial reports for both inside and outside
Managerial Accounting process of communicating and exploring financial statements to have a
better/more efficient control
Financial Statements how a company communicates its financial info outside
-balance sheet
-income statement
-cash flows
-statements of owners equity
Financial reporting information the company provides to help users with capital allocation decisions
about the company
Users investors and creditors use financial reports to make their capital allocation
decisions
Capital Allocation process of determining how and at what cost money is allocated among
competing interests
General Purpose Financial Statements provides financial reporting information to a variety of users
Decision Investors interested in assessing
1. company's ability to generate net cash flow
2. managements ability to protect and enhance capital providers
Accrual Basis Accounting a company records events that change its financial statement in the periods they
occur
SEC develop and standardize financial information presented to stockholders
AICPA practicing public accounting and helped make GAAP
FASB established and improved standards of financial accounting and reporting for
guidance of the public
Stuvia 2026-2027
, Intermediate Accounting (Chapter 1-5) Final Exam
FASB has 2 pronouncements 1. Accounting standards update
2. Financial accounting concepts
Emerging Issues Task Force (EITF) provides guidance to the framework of codification to reduce diversity in practice
on a timely basis
FASB Codification changed the way GAAP was documented, created one level of GAAP
Sarbanes Oxley Act increases resources to catch fraud and poor reporting properties
Public Company Account oversight board enforces authority and establishes control
Internal Control checks and balances to prevent fraud and errors
Expectations Gap what the public thinks should be done and what is done
2 sets of rules accepted internationally 1. GAAP
2. International Financial Reporting Standards
Top 5 economic crimes -misappropriation
-procurement fraud
-IP infringement
-cyber crime
-accounting fraud
Accounting Information System collects and processes data and gives the financial information to interested
parties
Event what causes changes in assets or liabilities and equity
Transaction external event involving a transfer of money or exchange between entities
Account shows the affect of transactons
Stuvia 2026-2027
Don't know?
Terms in this set (160)
Financial Accounting creates the financial reports for both inside and outside
Managerial Accounting process of communicating and exploring financial statements to have a
better/more efficient control
Financial Statements how a company communicates its financial info outside
-balance sheet
-income statement
-cash flows
-statements of owners equity
Financial reporting information the company provides to help users with capital allocation decisions
about the company
Users investors and creditors use financial reports to make their capital allocation
decisions
Capital Allocation process of determining how and at what cost money is allocated among
competing interests
General Purpose Financial Statements provides financial reporting information to a variety of users
Decision Investors interested in assessing
1. company's ability to generate net cash flow
2. managements ability to protect and enhance capital providers
Accrual Basis Accounting a company records events that change its financial statement in the periods they
occur
SEC develop and standardize financial information presented to stockholders
AICPA practicing public accounting and helped make GAAP
FASB established and improved standards of financial accounting and reporting for
guidance of the public
Stuvia 2026-2027
, Intermediate Accounting (Chapter 1-5) Final Exam
FASB has 2 pronouncements 1. Accounting standards update
2. Financial accounting concepts
Emerging Issues Task Force (EITF) provides guidance to the framework of codification to reduce diversity in practice
on a timely basis
FASB Codification changed the way GAAP was documented, created one level of GAAP
Sarbanes Oxley Act increases resources to catch fraud and poor reporting properties
Public Company Account oversight board enforces authority and establishes control
Internal Control checks and balances to prevent fraud and errors
Expectations Gap what the public thinks should be done and what is done
2 sets of rules accepted internationally 1. GAAP
2. International Financial Reporting Standards
Top 5 economic crimes -misappropriation
-procurement fraud
-IP infringement
-cyber crime
-accounting fraud
Accounting Information System collects and processes data and gives the financial information to interested
parties
Event what causes changes in assets or liabilities and equity
Transaction external event involving a transfer of money or exchange between entities
Account shows the affect of transactons
Stuvia 2026-2027
