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Intro To Financial Accounting Exam 1 Study Guide.

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  • Financial Accounting

Intro To Financial Accounting Exam 1 Study Guide. Accounting consists of three basic activities - answerIdentifies, records, communicates Who uses Accounting Data - answerExternal Users: Creditors and Investors Recent Financial Scandals - answerEnron, WorldCom, HealthSouth, AIG Sarbanes-Oxley ...

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  • October 16, 2024
  • 9
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Financial Accounting
  • Financial Accounting
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sirjoel
©SIRJOEL EXAM SOLUTIONS
12/3/2024 11:27AM



Intro To Financial Accounting Exam 1 Study
Guide.


Accounting consists of three basic activities - answer✔Identifies, records, communicates


Who uses Accounting Data - answer✔External Users: Creditors and Investors


Recent Financial Scandals - answer✔Enron, WorldCom, HealthSouth, AIG


Sarbanes-Oxley Act of (SOX). - answer✔Added new criminal charges for accounting scandals


Financial Statements - answer✔Balance Sheet


Income Statement

Statement of Stock Holder's Equity

Statement of Cash Flows

Note Disclosure


Generally Accepted Accounting Principles (GAAP) - answer✔Standards generally accepted and

universally practiced


Standard Setting Bodies - answer✔Financial Accounting Standards Board (FASB)

, ©SIRJOEL EXAM SOLUTIONS
12/3/2024 11:27AM


(SEC)

International Accounting Standards Board

(IASB)


Historical Cost Principle - answer✔dictates that companies record assets at their cost.


Fair Value Principle - answer✔states that assets and liabilities should be reported at a fair value


Monetary Unit Assumption - answer✔companies include in accounting records only transaction

data expressed in money.


Economic Entity Assumption - answer✔Requires that activities of the entity be kept separate and

distinct from activities of the owner


Combining activities of Kellogg and General Mills would violate? - answer✔Economic Entity

Assumption


Corporation - answer✔Ownership divided into shares of stock


Accounting Equation - answer✔Assets= Liabilities + Stockholder's Equity


Assets - answer✔Resources a business owns


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