- Study guides, Class notes & Summaries

The Purpose of Accounting correct answers to provide financial information to assist decision-making Preparers and Users correct answers Accountants - Preparers Decision Makers - Users Types of Accounting correct answers Financial accounting (class focus) - external (public) use Managerial accounting - internal (manager) use Common Questions Before Making An Investment correct answers 1. What do they do? 2. What is the competitive advantage? 3. What is the firm's position? 4. Pa...

-

5 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Which accounting method is for external (public) use? correct answers Financial Accounting Which accounting method is for internal (management) use? correct answers Managerial Accounting Creditor/Lender correct answers Someone whom the company is in debt to and is obligated to repay. Wants to be repaid principal and interest. What are the two positions you will be in when you invest in a company? correct answers 1) Lender/Creditor (Debt Investment) 2) Owner (Equity Investment) Sole ...

-

7 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

4 Basic elements of the Income Statement correct answers 1. Revenues (normal) 2. Expenses (normal) 3. "Other" revenues and gains 4."Other" expenses and losses Single-step income statement correct answers -(Single subtraction, simple to read, and because no classification distinctions, possible mistakes in classification are eliminated. -Combines ALL revenues and gains at the top of the income statement and then subtracts ALL expenses and losses below Revenues: Sales Reven...

-

4 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Financial statement forecasts rely on additivity within financial statements and articulation across financial statements. Given this information forecasts of future growth in inventory will most likely affect growth in: salary payable. accounts payable. depreciation. accounts receivables. correct answers accounts payable. Additivty means the things which should add up, balance out, equal out, subtract out, to certain numbers etc. A = L + E. Articulation means that relationships across...

-

9 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Current Ratio correct answers Current Assets/Current Liabilities Quick run ratio correct answers (Cash+A/R+Short term Investments)/Current Liabilities Solvency (Debt) Ratio correct answers Total Liabilities/Total Assets Quality of Income correct answers Cash gain from Operating Activities/Net Income Gross Profit Margin (Ratio) correct answers Gross Margin (or Profit)/Net Sales Operating Profit Margin correct answers Operating Income/ Net Sales Net Profit Margin correct answers ...

-

2 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Balance sheet correct answers provides a snapshot of a company's financial position as of a certain date. It reports whether those assets are financed with liabilities or stockholder's equity how are assets and liabilities listed correct answers assets-order of liquidity liability-order of due date current asset correct answers cash and other assets that are expected to be converted into cash, sold, or used up within one year, or one operating cycle, whichever is longer (current as...

-

3 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Completion of production basis correct answers companies recognize revenue at completion of production, even though sale has been made yet Cost-Recovery method correct answers companies recognize profit when cash collections exceed total COGS (recorded as income) used when there is uncertainty w/ receivables Cost-to-cost basis correct answers measures % of completion on contract - compares cost incurred so far w/ costs expected to complete the contract Deposit method correct answers wh...

-

7 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

What are Porters five forces? correct answers Buyer power, supplier power, threat of substitutes, threat of entry, and existing rivalries What is buyer power used to find? correct answers How much power consumers have to dictate the prices that they will pay for goods What is supplier power used to find? correct answers How much power suppliers have to dictate the prices they will sell the goods for What is the threat of substitutes used to find? correct answers To find out if you have ...

-

4 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Noise vs Bias correct answers -Noise is random, fall through statements, not consistent. It is transitory -Bias consistently makes a number go in a certain direction. Consistently pulls number one direction. Types of risk required in Item 1A Risk Disclosure correct answers Firm-specific Industry Domestic International Firm Specific Risk correct answers -ability to attract, retain, and motivate employees -dependence on one or few customers -dependence on one or few suppliers -cyber...

-

6 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Cost Leader correct answers - higher COGS - higher revenues - lower gross margin - lower SGA expenses Product Differentiator correct answers - lower COGS - lower revenues - higher gross margin - higher SGA expenses Acrual basis correct answers recognize revenues when you have delivered the product or service Cash basis correct answers recognize revenues when cash changes hands/payment gets sent firms with high cash balances correct answers banks, financial institutions firm...

-

3 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Wholesale or Retail correct answers One inventory account, merchandize inventory Manufacturing correct answers 3 categories: - Raw materials - Work-In-Process: RAW + DL + MOH - Finished Goods: total costs incorporated in completed but not sold. Goods Available For Sale (GAFS) correct answers Beg. Inventory + Purchases = GAFS = COGS + End Inventory Weighted Average correct answers Using the average cost FIFO (Fist In First Out) correct answers - Oldest cost against revenue on incom...

-

10 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Which of the following is not a benefit of the statement of cash flows? correct answers It focuses on cash flows, which are difficult for managers to manipulate. An indirect statement of cash flows: a. is more common than a direct method statement of cash flows. b. reports cash inflows and outflows within three different sections. c. can be useful in identifying significant estimates and choices made by managers under accrual accounting. correct answers All of these answer choices are corr...

-

7 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Operating Cash Flow correct answers cash generated from a firm's normal business activities - cash received from interest and dividends - cash pmts for interest Investing Cash Flows correct answers - cash transactions involving purchase and sale of long-term assets - cash received/loaned to other companies (acting like bank) - cash from selling or purchasing stock in other firms - cash received on sale of business segment Financing cash flows correct answers - cash received for ...

-

4 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

statement of cash flows correct answers explains the change in cash from one balance sheet date to the next balance sheet date by showing all sources and uses of cash for the company over a specified PERIOD OF TIME 3 sections: Operating activities Investing activities financing activities operating activities (statement of cash flows) correct answers involve cash inflows and outflows from a companies central business, such as receipts from customers and payments to suppliers and employe...

-

5 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Current assets correct answers Cash and cash equivalents Short term investments Accounts receivable Inventories Prepaid Expenses Investment and Funds PPE Intangible assets Other assets Cash -currency/coins -checking and saving accounts -undeposited checks -money order from customers correct answers CA: Cash and cash equivalents Certificates of deposit 3 months or less correct answers CA: Cash and cash equivalents money markets (debt securities, bonds) 3 months of less cor...

-

10 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

What appears on the income statement correct answers Revenues - Expenses Gross Margin = correct answers Sales - COGS Why is the statement of retained earnings prepared second? correct answers It displays the ending retained earnings and needs the Net Income from the Income Statement to calculate earnings. What is the formula for Retained Earnings? correct answers beginning retained earnings + net income - dividends What is on the statement of stockholders equity? correct answers all ...

-

5 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Difference between bias and noise correct answers -Bias is anything that reduces the randomness of the sample being tested. Anything that affects a decision other than facts. -Noise is the different biases and predispositions that can unconsciously shape how we interpret messages. -Bias creates noise Know the difference between ROA and ROCE correct answers -ROA measures a firm's success in using assets to generate earnings (independent of the financing) of those assets. -Return on...

4.0

(1)

4 pages

Written in 2024/2025

Grade A+

Insightfulsh3rry

Which of the following economic characteristics is consistent with a grocery store chain? Extensive competition Minimal competition Differentiated product High net income to sales - Precise Answer Extensive competition On a common size basis, which of the following assets is normally largest for a commercial bank? Cash and Marketable Securities Inventory Property, Plant and Equipment Accounts and Notes Receivable - Precise Answer Cash and Marketable Securities

-

12 pages

Written in 2023/2024

Grade A+

RapidPassAcademy