Fundamentals

Question 1

4 primary financial statements

Answer 1

-income statement
-Statement of RE:shareholders equity
-Balance sheet
-Statement of cash flows

Question 2

Statement of cash flows

Answer 2

-operating
-investing
-financing

Question 3

operating

Answer 3

-I/S items
-revenue
-expenses
-CA; cash
-CL

Question 4

investing

Answer 4

-LTA
-Investments; land & building

Question 5

financing

Answer 5

-LTL
-shareholder equity
common stock & RE
dividends

Question 6

Top 4 accounting firms
(highest to lowest)

Answer 6

1. Deloitte
2. PWC
3. Ernst & Young
4. KPMG

Question 7

contra accounts

Answer 7

-A/D buildings & equipment
-ADA
-discount
-premium
-treasury stock

Question 8

balance sheet

Answer 8

assets=liabilities

Question 9

income statement

Answer 9

rev-expenses = ni

Question 10

on account

Answer 10

-accts receiveable
-accts payable

Question 11

accts payable

Answer 11

money business owes suppliers

Question 12

accts receivables

Answer 12

money coming in from customers

Question 13

enron scandal

Answer 13

-fell in 2001
-fraudulent accounting practices
(rev regcognition, mark to market accounting, special purpose entities)
-ken lay founder first ceo
-jeff selling ceo during scandal

Question 14

sarbanes oxley act

Answer 14

-makes harder for companies to commit fraud
-responsible for publicly traded comapnies
-sen; paul sarbanes
-rep; mike oxley

Question 15

accounting rules

Answer 15

-GAAP
-financial accounting standard board (FASB) monitors GAAP
-securities exchange commission (SEC)
submit quarterly & financial statements

Question 16

accounting rules international

Answer 16

International financial reporting standards (IFRS)

Question 17

IMA

Answer 17

institute of management accountants

Question 18

IMA ethics

Answer 18

honesty, fairness, objectivity and responsibility

Question 19

competence

Answer 19

technical, knowledge, skills, expertise

Question 20

confidentiality

Answer 20

protect personal identifiable information

Question 21

integrity

Answer 21

“honesty is the best policy!”

Question 22

credibility

Answer 22

communication early, often & clearly to up credibility & trust “trusted advisors”

Question 23

do not ignore issues

Answer 23

seek out resolution

Question 24

anon reporting system

Answer 24

whistleblowers

Question 25

go to boss/supervisor

Answer 25

if they are involved go to next level management

Question 26

consult attorney

Answer 26

leave if necessary ( worst case scenario)

Question 27

in 2016 while working for pwc he completed a work assignment in

Answer 27

LUXEMBOURG

Question 28

summer 2021 spent 5 weeks in which spanish speaking country to get TEFL

Answer 28

COSTA RICA

Question 29

spending christmas in

Answer 29

ARGENTINA