Exam (elaborations)
Foundations of accounting questions with correct answers.
- Course
- Institution
Foundations of accounting questions with correct answers.
[Show more]
Seller
Follow
Content preview
Foundations of accounting questionswith correct answers.
Financial accounting ANS - Provides the information to decision makers which are external to the
business. They need information such as the performance of the business, and the advisability of
retaining their investment in the business. Share holders determine to buy more or less shares.
Managerial Accounting ANS - responsibilities.
1. Wether to build a new plant
2. how much to spend for advertising, research and development.
3. wether to lear or buy equipment and facilities.
Balance sheet ANS - shows the firm's assets, liabilities, and owners equity.
Assets ANS - valuable resources that a firm owns or control
Inventory ANS - merchandise acquired that is to be sold to costumers.
Liabilities ANS - obligations of the business to convey something of value in the future
Accounts payable (liability) ANS - Things that a business owes.
Notes payable ANS - formal, written obligations-loans that a business has.
Owner's equity ANS - refers to owner's interest in the business. It is a residual amount that equals
assets minus liabilities.
Income Statement ANS - summarizes the earnings generated by a firm during a specified during a
period of time.
, Revenue ANS - inflows of assets from providing goods and services to customers
Cost of goods sold ANS - cost of merchandise sold to its costumers
General and administrative expenses ANS - include salaries, rent, and other items..also knowns as
overhead cost
net income ANS - the differences between revenue and expenses
the statement of cash flows ANS - summarizes a firm's inflows and outflows of cash has 3 sections:
Operating activities, investing activities, and financing activities
Basic Accounting Equation ANS - Assets= Liabilities + Owner's equity
Expenses ANS - occur when resources are consumed in order to generate revenue
Transactions that affect owner's equity ANS - Owners contributions, owner's withdrawal, revenue, and
expenses
Retained earnings ANS - contains the effect of revenue and expense transactions on shareholders'
equity. That is, it reflects the increase (or decrease) in the shareholders interests in the firm that arose
from operations since the firms inception.
Cost object ANS - is any activity or item for which we desire a separate cost measurement.
Product Cost ANS - The Cost that various products a company sells
direct cost ANS - a cost that is easily traced to individual cost object
indirect cost ANS - cost that supports more than one cost objective
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 $9.29. 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