Week 1

Question 1

Accounting is an information system that

Answer 1

1. Measures business activities
2. Processes the information into reports
3. Communicates results to decision makers

Question 2

What’s the difference between financial and managerial accounting

Answer 2

Financial provides information to external decision makers, managerial provides to internal decision makers

Question 3

What is a CPA

Answer 3

Certified Public account

Question 4

What is a CGMA

Answer 4

Chartered Global Management Accountant. Has advanced knowledge in finance, operation, strategy, and management.

Question 5

What is a CMA

Answer 5

Certified Management Accountant, specialize in accounting a financial management knowledge

Question 6

What is a CFP

Answer 6

Certified Financial Planner. Certified professionals who work with individuals on budgeting, retirement planning, and other personal goals.

Question 7

What are 3 fields of accounting

Answer 7

Public, Private, Government

Question 8

What is a creditor

Answer 8

Any business or individual to whom a business owes money

Question 9

The process of examining data, identifying trends, and drawing conclusions

Answer 9

Data analytics

Question 10

What is data visualization

Answer 10

The presentation of data, trends, and conclusions in graphical charts

Question 11

A privately funded organization that oversees the creation and governance of accounting standards

Answer 11

FASB, Financial Accounting Standards Board.

Question 12

U.S. governmental agency that oversees the U.S. financial markets.

Answer 12

SEC, Securities and Exchange Commission

Question 13

The guidelines for accounting information are called

Answer 13

Generally Accepted Accounting Principles (GAAP)

Question 14

Standards for firms who do significant business in other countries

Answer 14

IFRS, International Financial Reporting Standards

Question 15

Who publishes the IFRS

Answer 15

International Accounting Standards Board

Question 16

Describe the economic entity assumption

Answer 16

States an organization stands apart as it’s own economic entity.

Question 17

States that acquired assets and services should be recorded at their actual cost and not fair value

Answer 17

Cost principle

Question 18

Represents the price that would be received if the asset was sold

Answer 18

Fair Value

Question 19

Assumes the entity will remain in operation for the foreseeable future

Answer 19

Going concern assumption

Question 20

The assumption that requires items on the financial statements to be measured in terms of monetary unit

Answer 20

monetary unit assumption

Question 21

Requires management to review internal controls

Answer 21

Sarbanes-Oxley Act (SOX)

Question 22

Monitors independent accountants who audit public firms

Answer 22

Public Company Accounting Oversight Board (PCAOB)

Question 23

What is the accounting equation

Answer 23

Assets = liabilities + equity

Question 24

an economic resource that is expected to benefit the business in the future and something the business owns or has control of

Answer 24

Asset

Question 25

Debts that are owed to creditors

Answer 25

Liabilities

Question 26

The owners claim to the asset

Answer 26

equity

Question 27

Represents the basic ownership of a corporation

Answer 27

Common stock

Question 28

Equity earned by profitable companies not distributed to stock holders

Answer 28

Retained earning

Question 29

A distribution of a corporation's earning to stockholders

Answer 29

dividends

Question 30

How do you calculate equity

Answer 30

Common stock - dividends + revenue - expenses

Question 31

An event that can affect the financial position of the business and be measured

Answer 31

transaction

Question 32

Short term liability that will be paid in the future

Answer 32

Accounts payable

Question 33

What are the 3 steps to analyzing a transaction

Answer 33

1. Identify the accounts and account types 2. Decide if each account increases or decreases 3. Determine if the accounting equation is in balance

Question 34

The right to receive cash in the future for goods or services performed

Answer 34

Accounts receivable

Question 35

Business documents that are used to communicate information needed to make business decisions.

Answer 35

Financial statements

Question 36

What are the four maind financial statements

Answer 36

1. Income Statement 2. Statement of retained earnings 3. Balance Sheet 4. Statement of cash flows

Question 37

Reports the net income/loss of the business for a specific time. Only includes revenues and expenses

Answer 37

income statement

Question 38

Reports how the company's retained earnings balance changed for a specific period of time. May be included in the Statement of Stockholders equity

Answer 38

Statement of retained earnings

Question 39

Reports on the assets, liabilities and stockholders' equity of the business as a of a specific date. Gives a snapshot of the health of the organization.

Answer 39

Balance Sheet

Question 40

Reports on a business' cash receipts and cash payments for a specific period

Answer 40

Statement of cash flows