Accounting for Decision Makers - C213 || 100% Verified Answers.
Accounting correct answers 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) correct answers The professional
organization of certified public accountants in the United States.
Balance Sheet correct answers 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 correct answers The preservation of a systematic, quantitative record of an activity.
Certified Public Accountant correct answers 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 correct answers The name given to accounting information provided for
and used by external users.
Financial Accounting Standards Board (FASB) correct answers Governmental body that sets
accounting standards in the United States.
Financial Statements correct answers The three primary financial information documents: the
balance sheet, income statement, and statement of cash flows.
Income Statement correct answers 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) correct answers The government agency responsible for tax
collection and tax law enforcement.
International Accounting Standards Board (IASB) correct answers An independent, international
body formed to develop worldwide accounting standards.
International Financial Reporting Standards (IFRS) correct answers The accounting standards
produced by the IASB.
Managerial Accounting correct answers The name given to accounting systems designed for
internal users.
Public Company Accounting Oversight Board (PCAOB) correct answers 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 correct answers 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 correct answers Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income correct answers The source of these increased assets
Assets correct answers 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 correct answers A statement of financial position shows the financial resources the
company owns or controls and the claims on those resources
, Book Value correct answers The book value of an asset is the asset's cost minus the asset's
accumulated depreciation.
Comparability correct answers Tnformation that becomes much more useful when it can be
related to a benchmark or standard
Conservatism correct answers a pervasive factor in accounting, can be summarized as follows:
When in doubt, recognize all losses but don't recognize any gains.
Consistency correct answers The consistency principle states that, once you adopt an accounting
principle or method, continue to follow it consistently in future accounting periods.
Disclosure correct answers
Earnings Per Share (EPS) correct answers EPS tells the owner of one share of stock what he or
she really wants to know
Entity Concept correct answers The idea that personal financial activity is kept separate from
business financial activity
Expenses correct answers The amount of assets consumed from the performance of business
operations and thus are the opposite of revenues
External Audit correct answers audit conducted by external (independent) qualified accountant(s)
Financing Activities correct answers Those activities whereby cash is obtained from, or repaid to,
owners and creditors
Gains correct answers Refers to money made on activities outside the normal business of a
company
Accounting correct answers 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) correct answers The professional
organization of certified public accountants in the United States.
Balance Sheet correct answers 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 correct answers The preservation of a systematic, quantitative record of an activity.
Certified Public Accountant correct answers 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 correct answers The name given to accounting information provided for
and used by external users.
Financial Accounting Standards Board (FASB) correct answers Governmental body that sets
accounting standards in the United States.
Financial Statements correct answers The three primary financial information documents: the
balance sheet, income statement, and statement of cash flows.
Income Statement correct answers 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) correct answers The government agency responsible for tax
collection and tax law enforcement.
International Accounting Standards Board (IASB) correct answers An independent, international
body formed to develop worldwide accounting standards.
International Financial Reporting Standards (IFRS) correct answers The accounting standards
produced by the IASB.
Managerial Accounting correct answers The name given to accounting systems designed for
internal users.
Public Company Accounting Oversight Board (PCAOB) correct answers 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 correct answers 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 correct answers Assets = Liabilities + Owners' Equity
Accumulated Other Comprehensive Income correct answers The source of these increased assets
Assets correct answers 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 correct answers A statement of financial position shows the financial resources the
company owns or controls and the claims on those resources
, Book Value correct answers The book value of an asset is the asset's cost minus the asset's
accumulated depreciation.
Comparability correct answers Tnformation that becomes much more useful when it can be
related to a benchmark or standard
Conservatism correct answers a pervasive factor in accounting, can be summarized as follows:
When in doubt, recognize all losses but don't recognize any gains.
Consistency correct answers The consistency principle states that, once you adopt an accounting
principle or method, continue to follow it consistently in future accounting periods.
Disclosure correct answers
Earnings Per Share (EPS) correct answers EPS tells the owner of one share of stock what he or
she really wants to know
Entity Concept correct answers The idea that personal financial activity is kept separate from
business financial activity
Expenses correct answers The amount of assets consumed from the performance of business
operations and thus are the opposite of revenues
External Audit correct answers audit conducted by external (independent) qualified accountant(s)
Financing Activities correct answers Those activities whereby cash is obtained from, or repaid to,
owners and creditors
Gains correct answers Refers to money made on activities outside the normal business of a
company
