lec 1

Question 1

would signing a contract with a new worker be a monetary transaction

Answer 1

no because there is no actual transfer of money just a contract stating that it will happen but it will only be recorded when the money is actually exchanged

Question 2

is paying a worker a monatary transaction

Answer 2

yea cuz the money gets transfered

Question 3

what is accounting (3)

Answer 3

information system that identifies, records and communicates economic events

Question 4

who are internal users of accounting

Answer 4

people within the organization ie the owner, marketing, HR, mamangement etc

Question 5

who are external users of accounting

Answer 5

anyone outside of the organization like a bank investors suppliers etc

Question 6

why would accouinting matter to a supplier

Answer 6

cuz most times people do deferred payments or the supplier will offer the person credit and they will check your financials to evaluate there risk

Question 7

why would HR use accounting

Answer 7

to see how much workers are getting paid

Question 8

what are the three different business structures

Answer 8

proprietorship, partnership, corporations

Question 9

who are shareholders

Answer 9

they are external investors that buy a portion of a compnay called a share

Question 10

why do companies offer shares

Answer 10

its a form or financing

Question 11

what are the 3 business activities

Answer 11

financing, investing, operations

Question 12

examples of finacing

Answer 12

shares, loans, dividends

Question 13

what is and examples of investing

Answer 13

putting money into a revenue generating asset. eg new machinery

Question 14

what are the 4 finacial statements

Answer 14

income statement, changes in equity, financial position, cash flow

Question 15

what is the period of time

Answer 15

its used when showing a range in time

Question 16

what is the point in time

Answer 16

its used for a specific date

Question 17

how to calculate income statement

Answer 17

revenue - expenses = net income

Question 18

how to calculate changes in equity

Answer 18

beginnign shareholder equity + issued common shares + net income - dividneds = ending shareholder equity

Question 19

how to calculate finacial position

Answer 19

assets = liabities + shareholder equity

Question 20

what is a expense

Answer 20

expense if the cost of assets consumerd and services used

Question 21

what statement are expenses on

Answer 21

statement of income

Question 22

what statement is assets on

Answer 22

finacial position

Question 23

examples of assets

Answer 23

supplies, property, inventory, prepaid insurance, equipment,

Question 24

examples of expenses

Answer 24

supplies, depriciationm cost of goods sold

Question 25

what are the two componets of shareholder equity

Answer 25

share capital and retained earnings

Question 26

what is share capital

Answer 26

how much the shareholders initially invest

Question 27

what is retained earnings

Answer 27

it reinvested profit

Question 28

what is the accounting equation

Answer 28

assets = liabilities + equity

Question 29

what is accounts recivable

Answer 29

its when there is a sale on credit and that the customer owes money to the business

Question 30

where would information about a companies operations be found

Answer 30

on the statement of income

Question 31

examples of liabilities

Answer 31

accounts payable, unearned revenue

Question 32

who do shareholders elect to represent there interests

Answer 32

a board of directors

Question 33

examples of operating activities

Answer 33

collection of accounts recievable, payment of interest expense , payment of tax expense