Accounting 5110 - Study guides, Class notes & Summaries

EDGAR System - ANSimproves efficiencies with which company information is collected and disseminated EDGAR System - ANSprimary purpose increase efficiency and fairness of the securities market for benefit of investors, corporations and the economy by accelerating the receipt, acceptance, corporate information filed with the agency Balance sheet - ANSpurpose to report a company's fiancial position on a particular date Balance sheet arrangement - ANSbased on common characteristics ...

Role of financial accounting - ANSto identify, measure, and report relevant and reliable financial information about companies to present and potential future stakeholders Who are stakeholders? - ANSStakeholders are parties with an interest in a company and are impacted by companies decision. Ex; shareholders, banks, creditors, managers, customers, etc. Separation of Ownership and Control - ANSthe need to bridge the gap between the principals (investors) and agents (management) creates...

five step revenue recognition process - ANS1. identify the contract with the customer 2. identify the performance obligations (single or multiple) 3. determine the transaction price 4. allocated the transaction price (all at once or a period in time) 5. recognize revenue when or as the entity satisfies the performance obligation performance obligation - ANSa promise by the seller to transfer goods or services to a customer; the seller recognizes revenue when it satisfies this contro...

which of the following does not describe intangible assets? a. they lack physical existence b. they are financial instruments c. they provide long-term benefits d. they are classified as long-term assets - ANSthey are financial instruments which of the following characteristics do intangible assets possess? a. physical existence b. claim to a specific amount of cash in the future c. long-lived d. held for resale - ANSlong-lived which characteristic is not possessed by intangible ...

Companies' motivations for investing in debt or equity securities issued by other companies: - ANS1) To earn a high rate of return 2) To secure certain operating or financing arrangements with another company How to provide useful information - ANSCompanies account for investment based on the type of security (debt or equity) and their intent with respect to the investment. Debt securities - ANSFinancial securities that represent a creditor relationship with another entity. Examples a...

Cash - Substantive - ANSReceipt of bank confirmations ◦ Not required for non-public entity audits; however, auditors usually obtain a direct receipt of a confirmation from every bank or other financial institutions ◦ Confirms usually verify loan information on the same form ◦ After auditors receive the completed bank confirmation, the confirmed balance should be traced to the amount stated on the bank reconciliation. ◦ Similarly, all other information on the reconciliation should be...

Presentation BUS 5110 Managerial Accounting

economic events - ANScause changes in the fianancial position of the company external events - ANSinvolve an exchange between company and separate economic entity purchase inventory for cash internal events - ANSdo not involve exchange btw company and separate economic entity (depreciation on eqpt or use of supplies) the accounting cycle - ANSunderlies the process used to capture the effect of economic events Assets= liabilities + stock holder's equity - ANSthe accounting c...

capital markets - ANSprovide a mechanism to help our economy allocate resources efficiently; all investors and creditors net operating cash flow - ANSthe difference between cash receipts and cash disbursements from providing goods and services cash basis accounting - ANSproduces a measure called net operating cash flow net income - ANSthe difference between revenues and expenses; a better indicator of future operating cash flows than net operating cash flow accrual accounting - ...