Solution Manual for Financial Accounting for Managers
1st Edition By Thomas, Spiceland, Nelson
Accounting - ANSWER: Recording, classifying, summarizing, and interpreting of
financial events to provide management and other interested parties the financial
information they need to make good decisions
Managerial accounting - ANSWER: Provides info and analyses to managers inside the
organization to assist them in decision making
Financial accounting - ANSWER: Accounting info and analyses prepared for people
outside of the organization
Compliance - ANSWER: Job of reviewing and evaluating the records used to prepare
a company's financial statements
Forensic accounting - ANSWER: focuses its attention on fraudulent activity
Tax accounting - ANSWER: Accountant trained in tax law and responsible for
preparing tax returns and developing tax strategies
Private accountant - ANSWER: Accountant who works for a single firm, government,
agency or non profit organization
Public accountant - ANSWER: Accountant who provides his or her accounting
services to individuals or businesses on a fee basis
Government and not for profit accounting - ANSWER: Supports organizations whose
purpose is not generating a profit but rather serving rate payers, tax payers and
others according to a duly approved budget
Chartered accountant - ANSWER: An accountant who has met the examination,
education, and experience requirements of the Canadian institute of chartered
accountants
Certified management accountant - ANSWER: Accountant who has met the
examination, education and experience requirements of the society of management
accountants of Canada
Certified general accountant - ANSWER: Accountant who has met the examination,
education and experience requirements of the certified general accountants
association of Canada
Accounting cycle - ANSWER: Six step procedure that results in the preparation and
analysis of the major financial statements
, Bookkeeping - ANSWER: Recording of business transactions
Journal - ANSWER: Record book where accounting data are first entered
Fundamental accounting equation - ANSWER: Assets are equal to liabilities plus
owners equity
Ledger - ANSWER: Specialized accounting book where info from journals is
accumulated to accounts and posted so that managers can find all info about one
specific account in one place
Trial balance - ANSWER: Summary of all the data in the account ledgers to show
whether the figures are correct and balanced
Financial statement - ANSWER: Summary of all the transactions that have occurred
over a particular period
Balance sheet - ANSWER: Financial statement that reports a firms financial condition
at a specific time
Assets - ANSWER: Economic resources owned by a firm
Liquidity - ANSWER: How fast an asset can be turned to cash
Current assets - ANSWER: Items that can or will be converted into cash within a year
Capital assets - ANSWER: Assets that are relatively permanent, land building or
equipment
Intangible assets - ANSWER: Long term assets
Liabilities - ANSWER: What the business owes to others
Accounts payable - ANSWER: Bills a company owes to others
Notes payable - ANSWER: Short term or long term liabilities that a business promises
to repay by a certain date
Bonds payable - ANSWER: Long term liabilities that represents money lent to a firm
Owners equity - ANSWER: Amount of the business that belongs to the owners minus
any liabilities owned by the business
Retained earnings - ANSWER: Accumulated earnings from a firms profitable
operations
1st Edition By Thomas, Spiceland, Nelson
Accounting - ANSWER: Recording, classifying, summarizing, and interpreting of
financial events to provide management and other interested parties the financial
information they need to make good decisions
Managerial accounting - ANSWER: Provides info and analyses to managers inside the
organization to assist them in decision making
Financial accounting - ANSWER: Accounting info and analyses prepared for people
outside of the organization
Compliance - ANSWER: Job of reviewing and evaluating the records used to prepare
a company's financial statements
Forensic accounting - ANSWER: focuses its attention on fraudulent activity
Tax accounting - ANSWER: Accountant trained in tax law and responsible for
preparing tax returns and developing tax strategies
Private accountant - ANSWER: Accountant who works for a single firm, government,
agency or non profit organization
Public accountant - ANSWER: Accountant who provides his or her accounting
services to individuals or businesses on a fee basis
Government and not for profit accounting - ANSWER: Supports organizations whose
purpose is not generating a profit but rather serving rate payers, tax payers and
others according to a duly approved budget
Chartered accountant - ANSWER: An accountant who has met the examination,
education, and experience requirements of the Canadian institute of chartered
accountants
Certified management accountant - ANSWER: Accountant who has met the
examination, education and experience requirements of the society of management
accountants of Canada
Certified general accountant - ANSWER: Accountant who has met the examination,
education and experience requirements of the certified general accountants
association of Canada
Accounting cycle - ANSWER: Six step procedure that results in the preparation and
analysis of the major financial statements
, Bookkeeping - ANSWER: Recording of business transactions
Journal - ANSWER: Record book where accounting data are first entered
Fundamental accounting equation - ANSWER: Assets are equal to liabilities plus
owners equity
Ledger - ANSWER: Specialized accounting book where info from journals is
accumulated to accounts and posted so that managers can find all info about one
specific account in one place
Trial balance - ANSWER: Summary of all the data in the account ledgers to show
whether the figures are correct and balanced
Financial statement - ANSWER: Summary of all the transactions that have occurred
over a particular period
Balance sheet - ANSWER: Financial statement that reports a firms financial condition
at a specific time
Assets - ANSWER: Economic resources owned by a firm
Liquidity - ANSWER: How fast an asset can be turned to cash
Current assets - ANSWER: Items that can or will be converted into cash within a year
Capital assets - ANSWER: Assets that are relatively permanent, land building or
equipment
Intangible assets - ANSWER: Long term assets
Liabilities - ANSWER: What the business owes to others
Accounts payable - ANSWER: Bills a company owes to others
Notes payable - ANSWER: Short term or long term liabilities that a business promises
to repay by a certain date
Bonds payable - ANSWER: Long term liabilities that represents money lent to a firm
Owners equity - ANSWER: Amount of the business that belongs to the owners minus
any liabilities owned by the business
Retained earnings - ANSWER: Accumulated earnings from a firms profitable
operations
