Exam (elaborations)
Intro To Financial Accounting Exam 1 With Complete Solution
- Course
- Institution
Intro To Financial Accounting Exam 1 With Complete Solution...
[Show more]
Content preview
Intro To Financial Accounting Exam 1 WithComplete Solution
Accounting involves 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. - 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 - ANSWER Standards generally accepted
and universally practiced
Standard Setting Bodies- ANSWER Financial Accounting Standards Board FASB
(SEC)
International Accounting Standards Board
(IASB)
, Historical Cost Principle- ANSWER requires companies to record assets at the cost.
Fair Value Principle- ANSWER holds that assets and liabilities are to be reported at a fair
value
Monetary Unit Assumption - ANSWER companies include in the 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
Provide future service or benefits
Cash, Supplies, Equipment
Liabilities - ANSWER Claims against assets (Debts and Obligations)
Creditors- Party to whom money is owed
Accounts Payable, Notes Payable
Stockholder's Equity - ANSWER Ownership claim on total Assets
Referred to as residual Equity
Common Stock and Retained Earnings
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 Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75759 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
