c213 pre assessment Q&A

What does accounting focus on - Answer- the impact a business activities have on its overall financial performance which report summarizes cash collections and caash expenditures from operating investing and financing activities over a period of time - Answer- statement of cashflow Which user would have a primary concern with an organizations ability to provide healthcare benefits - Answer- Employee Which benefit does a corporation gain by following generally accepted accounting principles? - Answer- a decrease in the amount of net income it reports Which body regulates a certified public accounting firms audit practices when the firm is auditing a large publicly traded company - Answer- The public company accounting oversight board what has the most significant impact on accounting pracftices - Answer- information technology what two items of information are revealed on the balance sheet - Answer- Ownership, debt which term is defined as the residual interest in the net assets of a company - Answer- owners equity which situation should result in revenue recognition on the income statement for the year ending 12/31/14 - Answer- In 2014 a company enters into a contract where by it agrees to provide services to a customer next year 2015 which category on the statement of cash flow summarizes cash reciepts and payments to owners and creditors of the company - Answer- Cash Flows from financing activities where would an investor find a summary of a companys significant accounting policies - Answer- in the notes to financial statements which assurance does an external audit report provide for its readers - Answer- The companys financial statement farily reflects its finanical postion information that can be verified - Answer- Reliable information having to do with the matter at hand - Answer- Relevant information that is importat enough to make a difference - Answer- Material