ACCT 201A CORRECT 100%
Financing Accounting's two functions? - ANSWER1. To measure the business
activities of a company
2. To communicate those measurements to external parties for decision-making
purposes
What are statements of stockholder's equity? - ANSWERsummarizes the changes in
stockholder's equity over an interval of time
What are balance sheets? - ANSWERpresents the financial position of the company
on a particular date
What are statements of cash flow? - ANSWERmeasures activities involving cash
receipts and cash payments over an interval of time
GAAP - ANSWERGenerally Accepted Accounting Principles
What are financing activities? - ANSWERtransactions the company has with
investors and creditors
- going to your friend for money
- loans from the bank
- investors asking for money to start a business
What are investing activities? - ANSWERtransactions involving the purchase and
sale of resources that are expected to benefit the company for several years
- long term assets
- tables, buildings, removing
What are operating activities? - ANSWERtransactions that relate to the primary
operations of the company
- grand-opening of your business, get one boba for free
Dividends - ANSWERare distributions to stockholders, usually in the form of cash
payments
What are financial statements and what are the 4 types? - ANSWERare periodic
reports published by the company for the purpose of providing information to
external users
1. Income Statement
2. Statement of Stockholder's Equity
3. Balances Sheet
4. Statement of cash flow
What are income statements? - ANSWERreports the company's revenues and
expenses over an interval of time, looks at the company's ability to earn a profit from
its running its operations
Financing Accounting's two functions? - ANSWER1. To measure the business
activities of a company
2. To communicate those measurements to external parties for decision-making
purposes
What are statements of stockholder's equity? - ANSWERsummarizes the changes in
stockholder's equity over an interval of time
What are balance sheets? - ANSWERpresents the financial position of the company
on a particular date
What are statements of cash flow? - ANSWERmeasures activities involving cash
receipts and cash payments over an interval of time
GAAP - ANSWERGenerally Accepted Accounting Principles
What are financing activities? - ANSWERtransactions the company has with
investors and creditors
- going to your friend for money
- loans from the bank
- investors asking for money to start a business
What are investing activities? - ANSWERtransactions involving the purchase and
sale of resources that are expected to benefit the company for several years
- long term assets
- tables, buildings, removing
What are operating activities? - ANSWERtransactions that relate to the primary
operations of the company
- grand-opening of your business, get one boba for free
Dividends - ANSWERare distributions to stockholders, usually in the form of cash
payments
What are financial statements and what are the 4 types? - ANSWERare periodic
reports published by the company for the purpose of providing information to
external users
1. Income Statement
2. Statement of Stockholder's Equity
3. Balances Sheet
4. Statement of cash flow
What are income statements? - ANSWERreports the company's revenues and
expenses over an interval of time, looks at the company's ability to earn a profit from
its running its operations
