Exam (elaborations)
Chapter 1 Fundamental Financial Accounting Concepts
- Course
- Institution
Chapter 1 Fundamental Financial Accounting Concepts
[Show more]
Seller
Follow
Content preview
Chapter 1 Fundamental FinancialAccounting Concepts
Accounting ANS - An information system that reports on the economic activities and financial condition
of a business or other organization.
Market ANS - A group of people or entities organized to exchange items of value.
Investors ANS - Provide financial resources in exchange for ownership interests in businesses. Owners
expect businesses to return to them a share of the business including a portion of earned income.
Creditors ANS - Lend financial resources to businesses. Instead of a share of the business, _____ expect
the businesses to repay borrowed resources plus a specified fee called interest.
Assets ANS - Economic resource used to produce revenue which is expected to provide future benefit to
the business.
Liquidation ANS - Process of dividing up an organization's assets and returning them to the resource
providers. Creditors normally have first priority; after creditor claims have been satisfied, any remaining
assets are distributed to the company's owners (investors).
Physical Resources ANS - Natural resources businesses transform to create more valuable resources.
Labor Resources ANS - Both intellectual and physical efforts of individuals used in the process of
providing goods and services to customers.
Stakeholders ANS - Parties interested in the operations of a business, including owners, lenders,
employees, suppliers, customers, and government agencies.
Financial Accounting ANS - Branch of accounting focused on the business information needs of external
users (creditors, investors, governmental agencies, financial analysts, etc.); its objectives is to classify
, and record business events and transactions to produce external financial reports (income statement,
balance sheet, statement of cash flows, and statement of changes in equity).
Managerial Accounting ANS - The accounting information needed by internal users, stakeholders, such
as managers, and employees who work within a business is provided by _________ _________
Not-for-profit entities ANS - Organizations that are not motivated by profit.
Financial Accounting Standards Board ANS - A privately funded organization with the primary authority
for establishing accounting standards in the United States.
Generally Accepted Accounting Principles ANS - Rules and practices that accountants agree to follow in
financial reports prepared for public distribution.
International Accounting Standards Board ANS - Private, independent body that establishes
International Financial Reporting Standards (IFRS).
Financial Statements ANS - Business communicates through four _______ _______: Income Statements,
Statement of Changes in Equity, a Balance Sheet, and a statement of cash flow.
Elements ANS - The information reported in financial statements is organized into ten categories known
as _______.
Accounts ANS - Record of classified and summarized transaction data; component of financial
statement elements.
Liabilities ANS - The obligations a business has to its creditors.
Common Stock ANS - Basic class of corporate stock that has no preferential claim on assets or
dividends; certificates that evidence ownership in a company.
Stockholders ANS - In accounting terms investors are called ______.
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 Professorkaylee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.69. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now