MGT 8803 ACCOUNTING QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS 100% CORRECT
| NEW UPDATE
unlimited, taxation, limited, publicly, privately - (ANSWER)Forms of Businesses:
Proprietorship & Partnership
• ____________liability
• No ____________ (on the business; the owner, however days pay taxes)
Corporation (Shareholders -> Board of Directors -> Top Managers)
• ____________ liability
• Taxation (corporations pay taxes, shareholders pay taxes on earnings)
• Can be ____________ traded or ____________ held.
separate entity - (ANSWER)Assumption that we treat the business and the owners as separate entities,
focusing on the accounting for the businesses, not the owners.
unit of measurement - (ANSWER)the currency in which the company is operating
going concern - (ANSWER)We presume that the company will continue to operate -- that it'll be ongoing
periodicity - (ANSWER)We presume that we can arbitrarily pick any time period that we want to and
report the financial results for that time period
materiality - (ANSWER)Assumption that the only information that needs to be disclosed in financial
statements is information that will be useful for those who rely on the financial statements to make
decisions
investors, creditors, government agencies, company management, financial analysts - (ANSWER)Users of
Financial Reports
• ________________ (stockholders)
, MGT 8803 ACCOUNTING QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS 100% CORRECT
| NEW UPDATE
• ________________ (banks)
• ________________ ________________ (SEC)
• ________________ ________________
• ________________ ________________
Generally Accepted Accounting Principles, Securities & Exchange Commission, Financial Accounting
Standards Board, International Financial Reporting Standards - (ANSWER)_____________
_____________ _____________ _____________(GAAP)
• _____________ & _____________ _____________ (SEC):The rule-making resides under the authority
of the SEC.
• _____________ _____________ _____________ _____________(FASB): consists of representatives
from public accounting firms, industry, government agencies, and academia.
_____________ _____________ _____________ _____________(IFRS)
understandability, timeliness, full disclosure, comparability, objectivity, decision relevance -
(ANSWER)Qualities of Financial Statements
• _______________________
• _______________________
• _______________________ _______________________
• _______________________
• _______________________
• _______________________ _______________________
Balance Sheet - (ANSWER)Measures financial position at a point in time.
, MGT 8803 ACCOUNTING QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS 100% CORRECT
| NEW UPDATE
resources, assets, funding, creditors, liabilities, owner's equity, owners - (ANSWER)Accounting Equation.
• The left side of the equation represents ________________ of the company, that is the
________________ are the resources.
• The right side represents sources of the ________________ provided by the ________________ . The
________________ represent the creditor's claims.
• ________________ ________________ represents the sources provided by the ________________
and the owner's claims.
Assets, Liabilities, Owner's Equity - (ANSWER)Accounting Equation:
_______________ = ________________ + __________________
assets - (ANSWER)Resources owned or rights to receive resources
physical, intangible, legal rights - (ANSWER)Assets
• ________________ (cash, buildings, inventory, equipment)
• ________________ (copyrights, patents, or trademarks)
• ________________ ________________ (e.g. legal right to receive payment)
liquidity - (ANSWER)The order of presentation for assets is determined by:
historical, sales, replacement, adjusted - (ANSWER)Assets Valuation:
• _______________ cost
• _______________ value
• _______________cost
• General price-level _______________ costs
cost principle - (ANSWER)Rule that assets are valued at their historical cost
| NEW UPDATE
unlimited, taxation, limited, publicly, privately - (ANSWER)Forms of Businesses:
Proprietorship & Partnership
• ____________liability
• No ____________ (on the business; the owner, however days pay taxes)
Corporation (Shareholders -> Board of Directors -> Top Managers)
• ____________ liability
• Taxation (corporations pay taxes, shareholders pay taxes on earnings)
• Can be ____________ traded or ____________ held.
separate entity - (ANSWER)Assumption that we treat the business and the owners as separate entities,
focusing on the accounting for the businesses, not the owners.
unit of measurement - (ANSWER)the currency in which the company is operating
going concern - (ANSWER)We presume that the company will continue to operate -- that it'll be ongoing
periodicity - (ANSWER)We presume that we can arbitrarily pick any time period that we want to and
report the financial results for that time period
materiality - (ANSWER)Assumption that the only information that needs to be disclosed in financial
statements is information that will be useful for those who rely on the financial statements to make
decisions
investors, creditors, government agencies, company management, financial analysts - (ANSWER)Users of
Financial Reports
• ________________ (stockholders)
, MGT 8803 ACCOUNTING QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS 100% CORRECT
| NEW UPDATE
• ________________ (banks)
• ________________ ________________ (SEC)
• ________________ ________________
• ________________ ________________
Generally Accepted Accounting Principles, Securities & Exchange Commission, Financial Accounting
Standards Board, International Financial Reporting Standards - (ANSWER)_____________
_____________ _____________ _____________(GAAP)
• _____________ & _____________ _____________ (SEC):The rule-making resides under the authority
of the SEC.
• _____________ _____________ _____________ _____________(FASB): consists of representatives
from public accounting firms, industry, government agencies, and academia.
_____________ _____________ _____________ _____________(IFRS)
understandability, timeliness, full disclosure, comparability, objectivity, decision relevance -
(ANSWER)Qualities of Financial Statements
• _______________________
• _______________________
• _______________________ _______________________
• _______________________
• _______________________
• _______________________ _______________________
Balance Sheet - (ANSWER)Measures financial position at a point in time.
, MGT 8803 ACCOUNTING QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS 100% CORRECT
| NEW UPDATE
resources, assets, funding, creditors, liabilities, owner's equity, owners - (ANSWER)Accounting Equation.
• The left side of the equation represents ________________ of the company, that is the
________________ are the resources.
• The right side represents sources of the ________________ provided by the ________________ . The
________________ represent the creditor's claims.
• ________________ ________________ represents the sources provided by the ________________
and the owner's claims.
Assets, Liabilities, Owner's Equity - (ANSWER)Accounting Equation:
_______________ = ________________ + __________________
assets - (ANSWER)Resources owned or rights to receive resources
physical, intangible, legal rights - (ANSWER)Assets
• ________________ (cash, buildings, inventory, equipment)
• ________________ (copyrights, patents, or trademarks)
• ________________ ________________ (e.g. legal right to receive payment)
liquidity - (ANSWER)The order of presentation for assets is determined by:
historical, sales, replacement, adjusted - (ANSWER)Assets Valuation:
• _______________ cost
• _______________ value
• _______________cost
• General price-level _______________ costs
cost principle - (ANSWER)Rule that assets are valued at their historical cost
