D196- Principles of Financial and Managerial Accounting Exam (100% correct and graded A+)

bookkeeping - Answer-day to day keeping of transcations steps of decision making - Answer-identify issue gather information identify alternatives select option that most likely results in desired objective accounting - Answer-analysis of events record and report financial effects of business activities where does capital come from (3) - Answer-investors creditors(lenders) business itself (from earnings retained) 2 main types of accounting - Answer-financial and managerial managerial accounting - Answer-gather and analysis of information for internal use and decision making. financial accounting - Answer-gather, report, analysis of information for external users- investors and creditors. summary of a business what does managerial accounting review - Answer-product cost, breakeven analysis, budgeting, performance analysis, outsource production what does financial accounting review - Answer-credit analysis, financial health, estimate value of the companyexamples of external financial reports for financial accounting - Answer-annual report, financial statement, balance sheet, income statement, statement of cash flow balance sheet - Answer-reports assets and liabilities. basic. list as of a point in time. as of today, as of yesterday income statement - Answer-how much did you ,ake period of time - from nov to jan statement of cash flow - Answer-where did the cash come from and where did the cash go period of time - from nov to jan lender - Answer-lends money with intend to get it back plus interest. need current income, existing obligations, existing assets, payroll stub, tax return, monthly payments, bank stmts investor - Answer-buys into your company. looks at if the business is profitable, what they are buying, buying obligations, potential future projections what forms will the manager of a business use - Answer-both financial and managerial fasb- what does it stand for, who are they and what do they do - Answer-financial accounting standards board private group, not govt agency, no legal authority, conducted of people from a variety of business related backgrounds. establishes financial accounting and reporting standards for private sector companies 1 of the two boards that make up GAAP gasb- what does it stand for, who are they, what do they do - Answer-governmental accounting standards board sets accounting and financial reporting standards for state and legal governments. authority over financial reporting by government entities 1 of the two boards that make up GAAPgaap - Answer-generally accepted accounting principles sec - Answer-Securities and Exchange Commission regulates us stock exchange. provides investors with full and fair information about publicly traded companies. legal punishment iasb - Answer-International Accounting Standards Board develop international accounting standards. made up of members from many countries aicpa - Answer-american institute of certified public accountants administers the cpa exam. enforces professional sanction by taking away cpa license when acted unethically. role and purpose of accounting - Answer-accumulate and report on financial information about performance, financial position, cash flow of a business. used to reach decisions about how to manage the business, invest in it, or lend money to it what is a balance sheet - Answer-statement of what they have and how they financed it at a specific point in time. balance sheet equation - Answer-assets = liabilities + owners equity what are assets and examples - Answer-what they own or control that will provide probable future benefits cash, accts receivable, inventory, buildings, land. what are liabilities and examples - Answer-what we owe. obligations that require future sacrifice.