Exam (elaborations)
Wgu Mba Program C213 Accounting Questions And Answers
- Course
- Institution
Wgu Mba Program C213 Accounting Questions And Answers
[Show more]
Content preview
Wgu Mba Program C213 AccountingQuestions And Answers
Accounting - ANS-Recording of day-to-day financial activities of a company and the
organization of that information into summary reports used to evaluate the companies
financial status.
Three primary financial statements in financial accounting - ANS-1) The Balance Sheet
2) The Income Statement
3) The Statement of Cash Flows
Balance Sheet - ANS-A financial statement that reports assets, liabilities, and owner's
equity on a specific date.
Income Statement - ANS-A financial statement showing the revenue and expenses for a
fiscal period. A company's expenses are subtracted from its revenues in computing net
income.
Statement of Cash Flows - ANS-the amount of cash collected and paid out by a
company in the following three types of activities, operating, investing, and financing.
Financial Accounting Users - ANS-Lenders, investors, company management,
suppliers, customers, employees, competitors, government agencies, politicians and the
press.
FASB (Financial Accounting Standards Board) - ANS-A private body that sets the
accounting standards in the United States.
SEC Securities and Exchange Commission - ANS-Regulates US stock exchanges
AICPA (American Institute of Certified Public Accountants) - ANS-Professional
organization of certified public accountants in the US.
Three factors that make right now a time of significant change in accounting are: - ANS-
1) Globalization of Accounting Standards
2) Information Technology
3) Accounting scandals including the 2001 Sarbanes-Oxley Act.
Financial Statements - ANS-Increase the amount of financial information about a
company to attract investors, lenders and other parties interested in the companies
financial status.
, The Balance Sheet - ANS-A report that shows the company's financial position at a
specified point in time and lists the company's resources (assets), obligations
(liabilities), and net ownership interest (owner's equity).
Notes to the Financial Statement - ANS-Provide information on the accounting
assumptions used in preparing the statements and also provide supplemental
information not included in the statements themselves.
An audit performed by accountants from outside a company that increases the reliance
that users can place on the information in the companies financial statements - ANS-
External Audit Report
Relevant - ANS-Information that is provided on a timely basis that can be used to
assess the past and project the future.
Reliable - ANS-Information that represents exactly what it is supposed to represent.
Comparability - ANS-Ability to compare the accounting information of different
companies because they use the same accounting principles.
Conservatism - ANS-The practice of recognizing all losses but not recognizing gains
until they are certain.
Materiality - ANS-The concept that weighs whether or not a certain dollar amount is
large enough to make a difference to anyone.
current assets - ANS-cash and other assets expected to be exchanged for cash or
consumed within a year
What are the most common current assets? - ANS-cash, accounts receivable, inventory
long term assets - ANS-assets that are expected to be used in business operations for
longer than one year.
What are the most common long term assets? - ANS-Property, plant and equipment
intagible assets - ANS-companies report the intangibles that they have purchased from
other companies but not the intangibles that they have developed themselves
The first item in a U.S. balance sheet is - ANS-usually cash; companies located in non-
U.S. countries often list long-term assets first.
Companies usually provide balance sheets - ANS-For at least two years, with the
statements shown in comparative, side-by-side format
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 Divinehub. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now