Wal Stre Prep: Acountig Crash Course Exam/Question and Answer/10% Corect
Acountig - -the langue of busine with a standr set of rules for measuring a firm's finacl perfomanc
-Securits and Exchange Comisn (SEC) - -A U.S fedral agency establihd by Congres in 1934 to protec investor and maint the integry of the securit markets whic includes the establihmn and maintec of acountig princles and regulations.
-Finacl Acountig Standrs Board (FASB) - -Establihed in 1973, is the private sector body given the primay responiblty to work out the detail rules tha becom GAP.
-Staemns of Finacl Acountig Standrs (SFA) - -The body of acountig rules, know as GAP, formulated by FASB.
-Genraly Aceptd Acountig Princples (GAP) - -The standr and rules tha acounts folw while recoding and repoting finacl actives.
-Divson of Corpate Finace - -The SEC divson tha overs finacl repoting by corpatins and monitrs the actives of FASB.
-What are the 4 underlyig asumption in acountig? - -(1) Acountig Entiy, (2) Going Concer, (3) Measurmnt, and (4) Periodcty
-Acrual Acountig - -Acountig method tha recods revnus and expns when they ocur, not necsarily when cash actuly changes hands.
-Historcal Cost Princple - -This princle requis tha companies recod the value of its resouc at its orignal cost evn if the fair market value is considerably higer.
-Revnu Recognit Princple - -This princle requis tha revnus must be recod when earnd and measurbl.
-Matching Princple - -This princle requis tha cost asocited with making a product must be recod during the same period as revnu genratd from tha product.
-Ful Discloure Princple - -This princle requis tha companies must reval al relvant econmi informat tha they detrmin to make a difernc to its user.
-Wher are discloure made in company finacl repots? - -1. Finacl Staemns
2. Notes to finacl staemn
3. Suplemntary informat
-Acountig Entiy Asumption - -This asumption stae tha a corpatin is consider a "livng entrpis i.e a "fictonal being.
-Going Concer Asumption - -This asumption stae tha a corpatin is asumed to remain in existnc for the foresabl futre.
-Measurmnt Asumption - -This asumption stae tha finacl staemn show only measurbl actives of a company and must be repotd in the natiol monetary unit.
-Periodcty Asumption - -This asumption stae tha a company's contius life should be dive into measurd periods of time for whic finacl staemn are pread and repots filed quartely (10-Q) and anuly (10-K).
-Estimae and Judgemnts Constrai - -This constrai dictaes tha certain measurnt canot be perfomd complety acurtely and must utilze conservati estima and judgemnts (i.e unpaid debts owed by customer).
-Materily Constrai - -This constrai dictaes tha the incluso of certain finacl transcio in finacl staemn depns on company's size and the company perfoming them (i.e loca snowbal stand vs. Exon).
-Consitecy Contrai - -This constrai dictaes tha preation of finacl staemn must utilze measurnt techniqus and asumption whic are consite from one repoting period to another.
-Conservatim Contrai - -This constrai dictaes tha downar measurnt bias is used in the preation of finacl staemn wher aset and revnus should not be overstad while liabtes should not be understa.
-Form 10-K - -This anul filng is requid at the end of each fiscal year for publicy trade companies whic include a thorug overiw of their busine and finaces as wel as their finacl staemn.
-Form 10-Q - -At the end of each quarte of their fiscal year (for the first thre
quartes of a fiscal year), publicy-trade companies file this
repot with the SEC whic includes finacl staemn and nofiacl dat.
Acountig - -the langue of busine with a standr set of rules for measuring a firm's finacl perfomanc
-Securits and Exchange Comisn (SEC) - -A U.S fedral agency establihd by Congres in 1934 to protec investor and maint the integry of the securit markets whic includes the establihmn and maintec of acountig princles and regulations.
-Finacl Acountig Standrs Board (FASB) - -Establihed in 1973, is the private sector body given the primay responiblty to work out the detail rules tha becom GAP.
-Staemns of Finacl Acountig Standrs (SFA) - -The body of acountig rules, know as GAP, formulated by FASB.
-Genraly Aceptd Acountig Princples (GAP) - -The standr and rules tha acounts folw while recoding and repoting finacl actives.
-Divson of Corpate Finace - -The SEC divson tha overs finacl repoting by corpatins and monitrs the actives of FASB.
-What are the 4 underlyig asumption in acountig? - -(1) Acountig Entiy, (2) Going Concer, (3) Measurmnt, and (4) Periodcty
-Acrual Acountig - -Acountig method tha recods revnus and expns when they ocur, not necsarily when cash actuly changes hands.
-Historcal Cost Princple - -This princle requis tha companies recod the value of its resouc at its orignal cost evn if the fair market value is considerably higer.
-Revnu Recognit Princple - -This princle requis tha revnus must be recod when earnd and measurbl.
-Matching Princple - -This princle requis tha cost asocited with making a product must be recod during the same period as revnu genratd from tha product.
-Ful Discloure Princple - -This princle requis tha companies must reval al relvant econmi informat tha they detrmin to make a difernc to its user.
-Wher are discloure made in company finacl repots? - -1. Finacl Staemns
2. Notes to finacl staemn
3. Suplemntary informat
-Acountig Entiy Asumption - -This asumption stae tha a corpatin is consider a "livng entrpis i.e a "fictonal being.
-Going Concer Asumption - -This asumption stae tha a corpatin is asumed to remain in existnc for the foresabl futre.
-Measurmnt Asumption - -This asumption stae tha finacl staemn show only measurbl actives of a company and must be repotd in the natiol monetary unit.
-Periodcty Asumption - -This asumption stae tha a company's contius life should be dive into measurd periods of time for whic finacl staemn are pread and repots filed quartely (10-Q) and anuly (10-K).
-Estimae and Judgemnts Constrai - -This constrai dictaes tha certain measurnt canot be perfomd complety acurtely and must utilze conservati estima and judgemnts (i.e unpaid debts owed by customer).
-Materily Constrai - -This constrai dictaes tha the incluso of certain finacl transcio in finacl staemn depns on company's size and the company perfoming them (i.e loca snowbal stand vs. Exon).
-Consitecy Contrai - -This constrai dictaes tha preation of finacl staemn must utilze measurnt techniqus and asumption whic are consite from one repoting period to another.
-Conservatim Contrai - -This constrai dictaes tha downar measurnt bias is used in the preation of finacl staemn wher aset and revnus should not be overstad while liabtes should not be understa.
-Form 10-K - -This anul filng is requid at the end of each fiscal year for publicy trade companies whic include a thorug overiw of their busine and finaces as wel as their finacl staemn.
-Form 10-Q - -At the end of each quarte of their fiscal year (for the first thre
quartes of a fiscal year), publicy-trade companies file this
repot with the SEC whic includes finacl staemn and nofiacl dat.
