Test Bank For Garrison, Managerial Accounting, 12th
Edition By Ray Garrison Eric Noreen Peter Brewer
Accounting - ANSWER The information system
identifies, records, and communicates the economic
events or an organization to interested users.
annual report - ANSWER A report prepared by
corporate management that presents financial
information including financial statements, a
management discussion and analysis section, notes, and
an independent auditor's report.
Assets - ANSWER resources owned by a business
Auditor's Report - ANSWER A report prepared by an
independent outside auditor stating the auditor's opinion
as to the fairness of the presentation of the financial
position and results of operations and their conformance
with generally accepted accounting principles.
Balance Sheet - ANSWER A financial statement that
reports the assets and claims to those assets at a specific
point in time.
,Basic Accounting Equation - ANSWER Assets =
Liabilities + Stockholders' Equity
Certified Public Accountant (CPA) - ANSWER An
individual who has met certain criteria and is thus
allowed to perform audits of corporations.
common stock - ANSWER Term used to describe the
total amount paid in by stockholders for the shares they
purchase.
Corporation - ANSWER A business organized as a
separate legal entity owned by stockholders
Divdends - ANSWER Payments of cash from a
corporation to its stockholders
Expenses - ANSWER The cost of assets consumed or
services used in the process of generating revenues.
Income Statement - ANSWER A financial statement
that reports a company's revenues and expenses and
resulting net income or net loss for a specific period of
time.
,Liabilities - ANSWER Amounts owed to creditors in
the form of debt and other obligations
Management discussion and analysis (MD&A) - ANSWER
A section of the annual report that presents
management's views on the company's ability to pay
near-term obligations, its ability to fund operations and
expansion, and its results of operations.
Net Income - ANSWER The amount by which
revenues exceed expenses.
net loss - ANSWER The amount by which expenses
exceed revenues.
Notes to the financial statements - ANSWER Notes
clarify information presented in the financial statements
and provide additional detail.
partnernship - ANSWER a business that is owned by
two or more people associated as partners
retained earnings - ANSWER the amount of net
income retained in the corporation
, Retained Earnings Statement - ANSWER A financial
statement that summarizes the amounts and causes of
changes in retained earnings for a specific time period.
revenue - ANSWER the increase in assets or decrease
in liabilities resulting from the sale of goods or the
performance of services in the normal course of business
Sarbanes-Oxley Act - ANSWER Regulations passed by
Congress to reduce unethical corporate behavior.
Sole Proprietorship - ANSWER A business owned by
one person
Statement of Cash Flows - ANSWER A financial
statement that provides financial information about the
cash receipts and cash payments of a business for a
specific period of time.
Stockholders' Equity - ANSWER The owners' claim to
assets.
Classified Balance Sheet - ANSWER A balance sheet
that groups together similar assets and similar liabilities,
using a number of standard classifications and sections.
Edition By Ray Garrison Eric Noreen Peter Brewer
Accounting - ANSWER The information system
identifies, records, and communicates the economic
events or an organization to interested users.
annual report - ANSWER A report prepared by
corporate management that presents financial
information including financial statements, a
management discussion and analysis section, notes, and
an independent auditor's report.
Assets - ANSWER resources owned by a business
Auditor's Report - ANSWER A report prepared by an
independent outside auditor stating the auditor's opinion
as to the fairness of the presentation of the financial
position and results of operations and their conformance
with generally accepted accounting principles.
Balance Sheet - ANSWER A financial statement that
reports the assets and claims to those assets at a specific
point in time.
,Basic Accounting Equation - ANSWER Assets =
Liabilities + Stockholders' Equity
Certified Public Accountant (CPA) - ANSWER An
individual who has met certain criteria and is thus
allowed to perform audits of corporations.
common stock - ANSWER Term used to describe the
total amount paid in by stockholders for the shares they
purchase.
Corporation - ANSWER A business organized as a
separate legal entity owned by stockholders
Divdends - ANSWER Payments of cash from a
corporation to its stockholders
Expenses - ANSWER The cost of assets consumed or
services used in the process of generating revenues.
Income Statement - ANSWER A financial statement
that reports a company's revenues and expenses and
resulting net income or net loss for a specific period of
time.
,Liabilities - ANSWER Amounts owed to creditors in
the form of debt and other obligations
Management discussion and analysis (MD&A) - ANSWER
A section of the annual report that presents
management's views on the company's ability to pay
near-term obligations, its ability to fund operations and
expansion, and its results of operations.
Net Income - ANSWER The amount by which
revenues exceed expenses.
net loss - ANSWER The amount by which expenses
exceed revenues.
Notes to the financial statements - ANSWER Notes
clarify information presented in the financial statements
and provide additional detail.
partnernship - ANSWER a business that is owned by
two or more people associated as partners
retained earnings - ANSWER the amount of net
income retained in the corporation
, Retained Earnings Statement - ANSWER A financial
statement that summarizes the amounts and causes of
changes in retained earnings for a specific time period.
revenue - ANSWER the increase in assets or decrease
in liabilities resulting from the sale of goods or the
performance of services in the normal course of business
Sarbanes-Oxley Act - ANSWER Regulations passed by
Congress to reduce unethical corporate behavior.
Sole Proprietorship - ANSWER A business owned by
one person
Statement of Cash Flows - ANSWER A financial
statement that provides financial information about the
cash receipts and cash payments of a business for a
specific period of time.
Stockholders' Equity - ANSWER The owners' claim to
assets.
Classified Balance Sheet - ANSWER A balance sheet
that groups together similar assets and similar liabilities,
using a number of standard classifications and sections.
