D196 Study Guide with Complete
Solutions A+ Pass
The Decision- Making Process - Answers -✔✔
1) Identify the issue
2) Gathering information. Ex.) Accounting #, costs
3) Identify Alternatives
4) Select best options
3 Function of an Accounting System - Answers -✔✔
1) Analysis of events
2) Routine Bookkeeping
3) Structure data for evaluation
3 Sources a.k.a Capital - Answers -✔✔
1) Investors (Owners)
2) Creditors (lenders)
3) The business itself in the form of earnings that have been retained.
Analysis of events - Answers -✔✔ See if it's good or bad, figure out what is going on.
Routine Bookkeeping - Answers -✔✔ bookkeeping in an organizing fashion.
Structure data for evaluation - Answers -✔✔ it is more or less than what I budgeted?
More or less than last year or paying people more or less.
Define the word "Accounting." - Answers -✔✔ * Quantitative (Numbers)
*Financial (Money)
* Useful- Focus on past info to oppose the future.
* Decisions- Help make decisions on what happens in the future.
Capital - Answers -✔✔ buy the resources or things, needed.
Money used to buy business can also be called "financing."
, Monetary Resources (Revenues) - Answers -✔✔ Used to pay loans, taxes, equipment
or new materials. Assets in the form of money, cash in hand, finances, funds, pecuniary
resources.
What accountants do in a business? - Answers -✔✔ Measure and report ex.) Walmart
figures out the sales in country, worldwide or city. Even department in stores. They
gather info to decision making.
Advice - Answers -✔✔ Accountants advise where money is coming from and become
decision makers.
Accounting Cycle - Answers -✔✔ Procedure for analyzing, recording, classifying,
summarizing and reporting the transactions of a business.
Who uses accounting information? - Answers -✔✔ 1) Managerial Accounting
2) Financial Accounting
Managerial Accounting - Answers -✔✔ Quantitative #'s that makes internal decision
making by analyzing and gathering info.
Financial Accounting - Answers -✔✔ Info that a business gathers/analysis/reports to for
people outside users (EXTERNAL USERS) such as investors and creditors.
Things that are looked at in Managerial accounting (Internal) - Answers -✔✔ * Product
cost
* Breakeven analysis
* Budget
* Performance evaluation
*Outsource production
Things that are looked at in Financial Accounting (External) - Answers -✔✔ * Credit
Analysis
*Regulatory uses
*estimate of the value of a company
Credit Analysis - Answers -✔✔ Ex.) Banks will ask for credit analysis by data you
provide to see if they will lend you money.
Regulatory Uses ( Such as financial health of insurance and/or bank - Answers -✔✔
States regulatory banks or companies
Estimate the Value of a company - Answers -✔✔ Ex.) Summary data to estimate the
value of a company.
Solutions A+ Pass
The Decision- Making Process - Answers -✔✔
1) Identify the issue
2) Gathering information. Ex.) Accounting #, costs
3) Identify Alternatives
4) Select best options
3 Function of an Accounting System - Answers -✔✔
1) Analysis of events
2) Routine Bookkeeping
3) Structure data for evaluation
3 Sources a.k.a Capital - Answers -✔✔
1) Investors (Owners)
2) Creditors (lenders)
3) The business itself in the form of earnings that have been retained.
Analysis of events - Answers -✔✔ See if it's good or bad, figure out what is going on.
Routine Bookkeeping - Answers -✔✔ bookkeeping in an organizing fashion.
Structure data for evaluation - Answers -✔✔ it is more or less than what I budgeted?
More or less than last year or paying people more or less.
Define the word "Accounting." - Answers -✔✔ * Quantitative (Numbers)
*Financial (Money)
* Useful- Focus on past info to oppose the future.
* Decisions- Help make decisions on what happens in the future.
Capital - Answers -✔✔ buy the resources or things, needed.
Money used to buy business can also be called "financing."
, Monetary Resources (Revenues) - Answers -✔✔ Used to pay loans, taxes, equipment
or new materials. Assets in the form of money, cash in hand, finances, funds, pecuniary
resources.
What accountants do in a business? - Answers -✔✔ Measure and report ex.) Walmart
figures out the sales in country, worldwide or city. Even department in stores. They
gather info to decision making.
Advice - Answers -✔✔ Accountants advise where money is coming from and become
decision makers.
Accounting Cycle - Answers -✔✔ Procedure for analyzing, recording, classifying,
summarizing and reporting the transactions of a business.
Who uses accounting information? - Answers -✔✔ 1) Managerial Accounting
2) Financial Accounting
Managerial Accounting - Answers -✔✔ Quantitative #'s that makes internal decision
making by analyzing and gathering info.
Financial Accounting - Answers -✔✔ Info that a business gathers/analysis/reports to for
people outside users (EXTERNAL USERS) such as investors and creditors.
Things that are looked at in Managerial accounting (Internal) - Answers -✔✔ * Product
cost
* Breakeven analysis
* Budget
* Performance evaluation
*Outsource production
Things that are looked at in Financial Accounting (External) - Answers -✔✔ * Credit
Analysis
*Regulatory uses
*estimate of the value of a company
Credit Analysis - Answers -✔✔ Ex.) Banks will ask for credit analysis by data you
provide to see if they will lend you money.
Regulatory Uses ( Such as financial health of insurance and/or bank - Answers -✔✔
States regulatory banks or companies
Estimate the Value of a company - Answers -✔✔ Ex.) Summary data to estimate the
value of a company.
