UPDATED Principles of Financial and Managerial Accounting - D196 Already Passed 2024 updated questions and answer

What are the three functions of Accounting Systems - CORRECT ANSWERS Analysis of events, routing book keeping, and structuring data for evaluation Why do you structure the information in accounting systems - CORRECT ANSWERS used to evaluate the performance and health of a business What does it mean to analyze a business - CORRECT ANSWERS determine if the information should be captured by accounting systems What is Bookkeepings? - CORRECT ANSWERS Day-to-Day keeping track of things What is the decision making process? - CORRECT ANSWERS 1. Identify the issue 2. gather information 3. identify alternatives 4. select the option that will most likely result in desired objective What is a business? - CORRECT ANSWERS an organization operated to make a profit from the sale of goods and services. What is a non profit organization? - CORRECT ANSWERS an entity without a profit objective, oriented toward providing services efficiently and effectively What are the resources businesses need to pursue an objective? - CORRECT ANSWERS buildings, machines, cash, trained workforce What is the money called to buy resources businesses need? - CORRECT ANSWERS capital or financing Where does capital come from? - CORRECT ANSWERS investors creditors(lenders) business itself (from earnings retained) What is revenues? - CORRECT ANSWERS the amount of assets created through the sale of goods and services What are the two primary areas of accounting? - CORRECT ANSWERS managerial and financial What is managerial accounting? - CORRECT ANSWERS gathering and analysis of information for the purpose of internal decision making. What is financial accounting? - CORRECT ANSWERS the gathering and reporting, and analysis of information primarily for the benefit of external users such as investors and creditors What are the tasks of a managerial accountant? - CORRECT ANSWERS Product Cost breakeven analysis budgeting performance evaluation outsource production What are the tasks of financial accountant? - CORRECT ANSWERS credit analysis regulatory users estimate value of a company External Financial Reports - CORRECT ANSWERS include the firms' annual report, which is used by individuals and organizations that have an economic interest in the business but are not part of the management what is the annual report? - CORRECT ANSWERS documents that summarize the results of operations and financial status of a company for the past year and outlines future plans. What are financial statments? - CORRECT ANSWERS reports such as a balance sheet, income statement, statement of cash flows; which summarize the financial status and results of operations of a business entity. What are the three primary financial statements? - CORRECT ANSWERS balance sheet income statement statement of cash flows What is a balance sheet? - CORRECT ANSWERS list as a point in time Resources (assets) Obligations (liabilities) What are income sheets? - CORRECT ANSWERS period of time (ex. year) How much profit was made What are statements of cash flows? - CORRECT ANSWERS period of time (ex. year) Where did our cash come from? Where did it go? Key external Users? - CORRECT ANSWERS Lenders and Investors What do lenders require as protection against title defects? - CORRECT ANSWERS current income existing obligations existing assets What do investors look for? - CORRECT ANSWERS is the business profitable? what is the potential for the future? What is the securities and exchange commission (SEC)? - CORRECT ANSWERS Monitors the financial accounting disclosures of companies. Both U.S and Foreign whose stocks trade on the U.S stock exchanges What is the Internal Revenue Service (IRS)? - CORRECT ANSWERS Collects taxes and audits tax filings for mistakes or fraud. which primary area of accounting generates reports for internal users? - CORRECT ANSWERS management accounting which group uses financial information to evaluate whether a company will be able to repay a loan? - CORRECT ANSWERS lenders which of the primary financial statements reports the resources, obligations, and owner's equity of a company? - CORRECT ANSWERS Balance Sheet Within what kind of environment does accounting operate? - CORRECT ANSWERS organizations, ethics, and technology Who makes up the Financial Accounting Standards Board (FASB)? - CORRECT ANSWERS A group of people with a variety of business-related backgrounds What is the Financial Accounting Standards Board (FASB) Responsible for? - CORRECT ANSWERS studying accounting issues and establishing accounting standards to govern financial reporting in the U.S Is FASB government or private? - CORRECT ANSWERS Private body- no legal authority who supports FASB? - CORRECT ANSWERS fees received by companies that are audited by public accounting firms What is the Governmental Accounting Standards Board (GASB)? - CORRECT ANSWERS sets the accounting and financial reporting standards for state and local governments. What is GAAP? - CORRECT ANSWERS Generally accepted accounting principles What authority does the SEC have? - CORRECT ANSWERS regulate financial markets and accounting