accounting 5110 exam pack

Property, Plant, and Equipment - ANSAssets of a durable nature used in the regular operations of a business. Also called fixed assets and plant assets. Plant Assets - ANSAssets of a durable nature used in the regular operations of a business. Also called property, plant, and equipment and fixed...

EDGAR System - ANSimproves efficiencies with which company information is collected and disseminated EDGAR System - ANSprimary purpose increase efficiency and fairness of the securities market for benefit of investors, corporations and the economy by accelerating the receipt, acceptance, corpor...

Role of financial accounting - ANSto identify, measure, and report relevant and reliable financial information about companies to present and potential future stakeholders Who are stakeholders? - ANSStakeholders are parties with an interest in a company and are impacted by companies decision. ...

Intangible assets desire their value from the right (claim) to receive cash in the future - t/f - ANSFalse Internally generated intangible assets are initially recorded at fair value - t/f - ANSFalse Limited-life intangibles are amortized by systematic charges to expense over their useful li...

Companies' motivations for investing in debt or equity securities issued by other companies: - ANS1) To earn a high rate of return 2) To secure certain operating or financing arrangements with another company How to provide useful information - ANSCompanies account for investment based on the...

capital markets - ANSprovide a mechanism to help our economy allocate resources efficiently; all investors and creditors net operating cash flow - ANSthe difference between cash receipts and cash disbursements from providing goods and services cash basis accounting - ANSproduces a measure c...

economic events - ANScause changes in the fianancial position of the company external events - ANSinvolve an exchange between company and separate economic entity purchase inventory for cash internal events - ANSdo not involve exchange btw company and separate economic entity (depreciat...