WGU D196 - Principles of Financial and Managerial Accounting % VERIFIED A+ SCORE.

WGU D196 - Principles of Financial and Managerial Accounting % VERIFIED A+ SCORE. bookkeeping - day to day keeping of transcations steps of decision making - identify issue gather information identify alternatives select option that most likely results in desired objective accounting - analysis of events record and report financial effects of business activities where does capital come from (3) - investors creditors(lenders) business itself (from earnings retained) 2 main types of accounting - financial and managerial managerial accounting - gather and analysis of information for internal use and decision making. financial accounting - gather, report, analysis of information for external usersinvestors and creditors. summary of a business what does managerial accounting review - product cost, breakeven analysis, budgeting, performance analysis, outsource production what does financial accounting review - credit analysis, financial health, estimate value of the company examples of external financial reports for financial accounting - annual report, financial statement, balance sheet, income statement, statement of cash flow balance sheet - reports assets and liabilities. basic. list as of a point in time. as of today, as of yesterday income statement - how much did you ,ake period of time - from nov to jan statement of cash flow - where did the cash come from and where did the cash go period of time - from nov to jan WGU D196 - Principles of Financial and Managerial Accounting % VERIFIED A+ SCORE lender - lends money with intend to get it back plus interest. need current income, existing obligations, existing assets, payroll stub, tax return, monthly payments, bank stmts investor - buys into your company. looks at if the business is profitable, what they are buying, buying obligations, potential future projections what forms will the manager of a business use - both financial and managerial fasb- what does it stand for, who are they and what do they do - financial accounting standards board private group, not govt agency, no legal authority, conducted of people from a variety of business related backgrounds. establishes financial accounting and reporting standards for private sector companies 1 of the two boards that make up GAAP gasb- what does it stand for, who are they, what do they do - governmental accounting standards board sets accounting and financial reporting standards for state and legal governments. authority over financial reporting by government entities 1 of the two boards that make up GAAP gaap - generally accepted accounting principles sec - Securities and Exchange Commission regulates us stock exchange. provides investors with full and fair information about publicly traded companies. legal punishment iasb - International Accounting Standards Board develop international accounting standards. made up of members from many countries aicpa - american institute of certified public accountants administers the cpa exam. enforces professional sanction by taking away cpa license when acted unethically. role and purpose of accounting - accumulate and report on financial information about performance, financial position, cash flow of a business. used to reach decisions about how to manage the business, invest in it, or lend money to it what is a balance sheet - statement of what they have and how they financed it at a specific point in time. balance sheet equation - assets = liabilities + owners equity what are assets and examples - what they own or control that will provide probable future benefits cash, accts receivable, inventory, buildings, land. what are liabilities and examples - what we owe. obligations that require future sacrifice. phone bill, car loan, accts payable, fed and state govt tax, mortgage, unearned revenue what is owners equity and examples - owners share, stockholders equity, how much owner originally invested in business + how much profit they have left capital stock- amt given by shareholders to obtain shares of stock(capital=$ so money from stocks) retained earnings- earnings retained in business, ex= net income do dividends increase or decrease owners equity - decrease does investments by owners increase or decrease owners equity - increase what is an income stmt - analyzes economic performance for a specific period of time. statement of income. revenues, expenses, liabilities. equation for net income - net income= revenues - expenses does revenues increase or decrease net assets - increase does expenses increase or decrease net assets - decrease what is revenue - amount of assets created from sale. products, membership, software, hardware, etc what are expenses - amount of assets consumed in generating revenues. wages, utilities, wholesale cost if revenue exceeds expenses what happens - you get net income if revenue is less than expenses paid, what happens - net loss how to find net income or net loss - revenue- expenses= if + net income, if - net loss gross profit and loss - difference between sales and cost of good sold. retail pricewholesale cost to buy. sales- cost of goods.