Accounting for Decision Makers - C213 Correct Questions and Answers!!

Accounting for Decision Makers - C213 Correct Questions and Answers!! Accounting - ANSWER A system of providing "quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions." American Institute of Certified Public Accountants (AICPA) - ANSWER The professional organization of certified public accountants in the United States. Balance Sheet - ANSWER Document which reports the resources of a company (the assets), the company's obligations (the liabilities), and the owners' equity, which represents how much money has been invested in the company by its owners. Bookkeeping - ANSWER The preservation of a systematic, quantitative record of an activity. Certified Public Accountant - ANSWER A person who has taken a minimum number of college-level accounting classes, has passed the dreaded CPA exam, and has met other requirements set by his or her state. Financial Accounting - ANSWER The name given to accounting information provided for and used by external users. Financial Accounting Standards Board (FASB) - ANSWER Governmental body that sets accounting standards in the United States. Financial Statements - ANSWER The three primary financial information documents: the balance sheet, income statement, and statement of cash flows. Income Statement - ANSWER This document reports the amount of net income earned by a company during a period, with annual and quarterly income statements being the most common. Internal Revenue Service (IRS) - ANSWER The government agency responsible for tax collection and tax law enforcement. International Accounting Standards Board (IASB) - ANSWER An independent, international body formed to develop worldwide accounting standards. International Financial Reporting Standards (IFRS) - ANSWER The accounting standards produced by the IASB. Managerial Accounting - ANSWER The name given to accounting systems designed for internal users. Public Company Accounting Oversight Board (PCAOB) - ANSWER A private, non-profit organization that effectively serves as an arm of the SEC in registering, inspecting, and disciplining the auditors of all publicly traded companies. Statement of Cash Flows - ANSWER This document reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and financing Accounting Equation - ANSWER Assets = Liabilities + Owners' Equity Accumulated Other Comprehensive Income - ANSWER The source of these increased assets Assets - ANSWER Assets are the firm's economic resources, formally defined as "probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events Balance Sheet - ANSWER A statement of financial position shows the financial resources the company owns or controls and the claims on those resources Book Value - ANSWER The book value of an asset is the asset's cost minus the asset's accumulated depreciation. Comparability - ANSWER Tnformation that becomes much more useful when it can be related to a benchmark or standard Conservatism - ANSWER a pervasive factor in accounting, can be summarized as follows: When in doubt, recognize all losses but don't recognize any gains. C