Exam (elaborations)
MBA 5100 - Chapter 2 Questions and answers latest update
- Course
- Institution
MBA 5100 - Chapter 2 Questions and answers latest update
[Show more]
Seller
Follow
Schoolflix
Reviews received
Content preview
MBA 5100 - Chapter 2Describe the basic elements of a financial accounting system - correct answer Rules to record each
economic event
A framework to prepare the financial statements
Controls to detect the errors in the recording process
Rules of accounting are called ____________. - correct answer Generally Accepted Accounting Principles
(GAAP)
GAAP determines.... - correct answer ...What transactions are recorded
When transactions are recorded
Amount of the transaction recorded
Transaction - correct answer An economic event or condition that under generally accepted accounting
principles directly affects an element of the accounting equation:
Assets = Liabilities + Stockholders' Equity
Integrated Financial Statement Approach - correct answer Analyzes, records, and summarizes
transactions by Integrating the accounting equation with Income statement Statement of Cash Flows
The Accounting Equation - correct answer Assets = Liabilities + Stockholders' Equity
Expand Stockholders' Equity. What is the equation? - correct answer Stockholders' Equity = Common
Stock + Retained Earnings
Expand Retained Earnings. What is the equation? - correct answer Retained Earnings = Revenues -
Expenses - Dividends
Expand Net Income. What is the equation? - correct answer Net Income = Revenues - Expenses
, What is the impact of common stock, revenue, expense, and dividend transactions on total on
Stockholders' Equity? - correct answer Issuance of Stock and/or Revenues = an increase on Stockholders'
Equity
Expenses and/or Dividends Paid = a decrease on Stockholders' Equity
What are the controls for the accounting equation? - correct answer - The accounting equation MUST
balance
- The ending cash balance on the Statement of Cash Flows must equal the cash balance on the Balance
Sheet
- The net income on the Income Statement must equal the net effects of revenues and expenses on
retained earnings
A __________ is an economic event that under generally accepted accounting principles affects an
element of the financial statements and must be recorded.
a. Framework
b. Controls
c. Set of rules
d. Transaction - correct answer d. Transaction
The Statement of cash flows are linked to ______ on the balance sheet. - correct answer Cash
Net Income from the Income Statement is linked to _____ _____ _____. - correct answer Retained
Earnings Statement
Retained Earnings is linked to the ______ ______ in ___________ _________. - correct answer Balance
Sheet; Stockholders' Equity
Which of the following will NOT cause a change in the shareholder's equity of a business?
a. Payment of a business debt.
b. Payment of dividends.
c. Sale of land at a profit.
d. Losses from unprofitable operations. - correct answer a. Payment of a business debt.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Schoolflix. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
71184 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now