Principles of Accounting I Exam 1 2024 || All Questions & Answers (Graded A+)

Principles of Accounting I Exam 1 2024 || All Questions & Answers (Graded A+) Principles of Accounting I Exam 1 2024 || All Questions & Answers (Graded A+) Accounting - ANSWER - the information system that identifies records, and communicates the economic events of an organization to interested users Annual report - ANSWER - a report prepared by the corporate management that presents financial information including financial statements, a management discussion and analysis section, notes, and an independent auditor's report Assets - ANSWER - resources owned by the business Auditor's report - ANSWER - a report prepared by an independent outside auditor stating the auditor's opinion as to the fairness of the presentation of the financial position and results of operations and their conformance with generally accepted accounting principles Balance sheet - ANSWER - a financial statement that reports the assets and claims to those assets at a specific point in time Basic accounting equation - ANSWER - Assets = Liabilities + Stockholders' Equity Certified public accountant - ANSWER - (CPA) an individual who has met certain criteria and is thus allowed to perform audits of corporations Common stock - ANSWER - term used to describe the total amount paid in by stockholders for the shares they purchase Corporation - ANSWER - a business organized as a separate legal entity owned by stockholders Dividends - ANSWER - payments of cash from a corporation to its stockholders Expenses - ANSWER - the cost of assets consumed or services used in the process of generating revenues Income statement - ANSWER - a financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time Liabilities - ANSWER - amounts owed to creditors in the form of debts and other obligations Management discussion and analysis - ANSWER - (MD&A) a section of the annual report that presents management's views on the company's ability to pay near-term obligations, its ability to fund operations and expansion and its results of operations