MGT 8803 - Accounting
Study online at https://quizlet.com/_fhsikz
1. Purpose of Fi- Provide meaningful quantitative financial information regarding an entity's ac-
nancial Account- tivities to decision makers
ing (FA)
2. T/F: taxes and False. FA focused on people outside of business, NOT tax authorities
managerial ac-
counts are part of
Financial Account-
ing (FA)
3. who are the most shareholder (owners) + debt holders (creditors)
important deci-
sion-makers in FA?
4. Quality of financial Relevance, faithful representation (dependable + reliable), timelines, compara-
statements bility
5. where do FA stan- FASB creates Generally Accepted Accounting Principles (GAAP), which are the
dards come from? accounting standards used by companies in the U.S.
Congress -> SEC -> FASB -> GAAP
6. Standard Echange oversees the enforcement of these standards for publicly traded
Commission (SEC)
7. Financial Account- Determines GAAP
ing Standards
Board (FASB)
8. Generally Accept- Standards and rules that accountants follow while recording and reporting
ed Accounting financial activities.
Principles (GAAP)
9.
, MGT 8803 - Accounting
Study online at https://quizlet.com/_fhsikz
Who oversees FA SEC and APICAA
to reduce manipu- - SEC oversees all publicly traded companies
lation? (aka the big - APICCA (American institute of certified public accountants) perform external
guys) audits. NOT a guarantee
10. Why is FA and cap- -critical for healthy economy
ital allocation im- -better info for decision makers = better capital allocation
portant? -accounting is primary source for decision makers
11. What is required -Balance Sheet***
in financial state- -Income Statement***
ments? -Statement of Shareholder's Equity
-Statement of Cash Flows
-Statement of Comprehensive Income (not very useful)
*** = most used sources
12. What is the Man- discuss what happened last period & what's going to happen in the future
agement Discus- - relevant but not reliable; can be biased
sion and Analysis
(MD&A) responsi-
ble for?
13. Balance Sheet reports assets, liabilities, and owner's equity of a firm at a POINT in time
14. Assets Economic resources (things of value) owned by a firm that have future economic
benefit
15. examples of assets -cash
-account receivables (A/R)
-inventory
-land
-buildings
-equipment
, MGT 8803 - Accounting
Study online at https://quizlet.com/_fhsikz
-copyrights
-investments
16. what does an as- 1) be owned by company
set need to have 2) possess expected future economic benefit
to be reported on
balance sheet?
17. T/F: Historical Cost True
is faithful/objec-
tive and Mar-
ket Value is rele-
vant/useful
18. Historical Cost original transaction value
19. Market Value The amount you could realistically sell an asset for TODAY; also known as fair
value
20. How are many as- B. historical cost because it is objective and faithful
sets reported?
A. Market value
B. Historical cost
21. Liability future obligation to pay cash, transfer assets or provide services to another
company
22. examples of liabili- -accounts payable (A/P)
ties -notes payable (N/P)
-wages payable
23. Account Payable money owed to supplier
(A/P)
Study online at https://quizlet.com/_fhsikz
1. Purpose of Fi- Provide meaningful quantitative financial information regarding an entity's ac-
nancial Account- tivities to decision makers
ing (FA)
2. T/F: taxes and False. FA focused on people outside of business, NOT tax authorities
managerial ac-
counts are part of
Financial Account-
ing (FA)
3. who are the most shareholder (owners) + debt holders (creditors)
important deci-
sion-makers in FA?
4. Quality of financial Relevance, faithful representation (dependable + reliable), timelines, compara-
statements bility
5. where do FA stan- FASB creates Generally Accepted Accounting Principles (GAAP), which are the
dards come from? accounting standards used by companies in the U.S.
Congress -> SEC -> FASB -> GAAP
6. Standard Echange oversees the enforcement of these standards for publicly traded
Commission (SEC)
7. Financial Account- Determines GAAP
ing Standards
Board (FASB)
8. Generally Accept- Standards and rules that accountants follow while recording and reporting
ed Accounting financial activities.
Principles (GAAP)
9.
, MGT 8803 - Accounting
Study online at https://quizlet.com/_fhsikz
Who oversees FA SEC and APICAA
to reduce manipu- - SEC oversees all publicly traded companies
lation? (aka the big - APICCA (American institute of certified public accountants) perform external
guys) audits. NOT a guarantee
10. Why is FA and cap- -critical for healthy economy
ital allocation im- -better info for decision makers = better capital allocation
portant? -accounting is primary source for decision makers
11. What is required -Balance Sheet***
in financial state- -Income Statement***
ments? -Statement of Shareholder's Equity
-Statement of Cash Flows
-Statement of Comprehensive Income (not very useful)
*** = most used sources
12. What is the Man- discuss what happened last period & what's going to happen in the future
agement Discus- - relevant but not reliable; can be biased
sion and Analysis
(MD&A) responsi-
ble for?
13. Balance Sheet reports assets, liabilities, and owner's equity of a firm at a POINT in time
14. Assets Economic resources (things of value) owned by a firm that have future economic
benefit
15. examples of assets -cash
-account receivables (A/R)
-inventory
-land
-buildings
-equipment
, MGT 8803 - Accounting
Study online at https://quizlet.com/_fhsikz
-copyrights
-investments
16. what does an as- 1) be owned by company
set need to have 2) possess expected future economic benefit
to be reported on
balance sheet?
17. T/F: Historical Cost True
is faithful/objec-
tive and Mar-
ket Value is rele-
vant/useful
18. Historical Cost original transaction value
19. Market Value The amount you could realistically sell an asset for TODAY; also known as fair
value
20. How are many as- B. historical cost because it is objective and faithful
sets reported?
A. Market value
B. Historical cost
21. Liability future obligation to pay cash, transfer assets or provide services to another
company
22. examples of liabili- -accounts payable (A/P)
ties -notes payable (N/P)
-wages payable
23. Account Payable money owed to supplier
(A/P)
