Chapter 1 – Introduction to Financial Accounting

Accounting process of identifying, measuring, and communicating financial information to help people make economic decisions Accounting Equation Assets = Liabilities + Equity American Institute of Certified Public Accountaints (AICPA) professional organization of CPAs in the USA Assets resource owned by the company that is expected to provide the company future economic benefits Audited financial statements […]

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Managerial and Financial Accounting Differences

Managerial Internal reporting and decision making Financial External reporting Financial Historical information Managerial Future Decision Making Managerial Emphasizes relevance Financial Emphasizes verifiability Financial Precision Managerial Timeliness Financial GAAP Managerial not required Financial Company wide reporting Managerial Segement reporting

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Financial Accounting vs. Managerial Accounting

mainly for external use financial mainly for internal use managerial helps external users make financial decisions financial helps managers make decisions, plan, direct, and control managerial driven by GAAP financial not driven by GAAP managerial looks at the previous year financial looks to the future managerial ONLY financial data financial not just financial data managerial […]

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UF MBA financial accounting exam 1 terms

Adjusting Entries Entries that update account balances prior to preparing financial statements; a bookkeeping tool. Adjusting entries never affect cash account Assets Economic resources used to produce revenue which is expected to provide future benefit for the business Audit Detailed examination of some aspect of a company’s accounting records or operating procedures in order to […]

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Managerial Accounting vs Financial Accounting

Primary users of the information are the internal users such as managers managerial Primary users of the information are the external users, such as creditors, stockholders, and government regulators Financial The purpose of the information is to help managers plan, direct, and control business operations and make business decisions Managerial The purpose of the information […]

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FAR 1) Financial Accounting Standards Board

What does the Securities and Exchange Commission (SEC) do? It administers the US securities laws, most notably the Securities Act of 1933 and the Securities Exchange Act of 1934 as well as others. What is the main purpose of the Securities and Exchange Commission (SEC)? The main purpose of the SEC is to promote efficient […]

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Financial Accounting Exam 1

creditors persons or entities to whom a company owes money amount owed to creditors liabilities note payable liability to the bank bonds payable debt securities sold to investors that must be repaid at a particular date some years in the future common stock the total amount paid in by stockholders for the shares they purchase […]

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Financial Accounting Chapter 1

Stockholders investors Creditor lenders (banks) – make money on loans by charging interest Dividends cash payments that stockholders hope to receive; a portion of what the company earned Internal Decision Makers managers – need info about the company’s business activities to manage the operating, investing, and financing activities of the firm External Decision Makers stockholders […]

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Financial accounting chapters 5-8

Perpetual inventory system keeps a running computerized record of merchandise inventory Purchase of merchandise inventory Merchandise inventory DB cash or accounts payable CD purchase return cash or accounts payable DB merchandise inventory CD payment of freight in merchandise inventory DB cash CD payment with in discount period accounts payable DB cash CD merchandise inventory CD […]

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Accounting-Managerial v.s. Financial

Managerial accounting is directed towards: providing information and analysis to managers inside an organization. Activities performed by managerial accountant include: 1. Determining the cost of providing a service or making a product 2. Assist management in profit planning and formalizing the plans into budgets 3. Determine the behavior of costs and how profit will change […]

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Financial Accounting

accounting equation Assists = liabilities + stockholders equity -referred to as fundamental model of business valuation revenues sales of goods or services to customers net income revenue-expenses financial statements a companies primary way of communicating to external users income statement a company’s timely report of expenses and revenues the two sources of stockholders equity amounts […]

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Managerial Accounting Chapter 1

Managers Responsibilities Planning, Directing, Controlling Planning sets goals and objectives ex. generate more sales>open a new store Directing overseeing day-to-day operations ex. use cost report to adjust material usage Controlling evaluate results and make adjustments Managerial accounting differs from financial accounting in that managerial accounting emphasizes data relevance over data objectivity Corporate position responsible for […]

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Financial Accounting Ch. 1-3

accounting information system that identifies, records, and communicates the economic events of an organization annual report report prepared by corporate management that presents financial information and an independent auditor’s report Assets Resources owned by a business Auditor’s report A report prepared by an independent outside auditor stating the auditor’s opinion as to the fairness of […]

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Principles of Financial Accounting Chapter 1

Accounting Information and measurement system that identifies, records, and communicates relevant information about a company’s business activities. Accounting Equation Equality involving a company’s assets, liabilities, and equity; Assets = Liabilities + Equity Assets Resources that a company owns or controls that are expected to provide current and future benefits to the business. Audit Analysis and […]

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Business Law 1-6

Constitutional Law Law that involves the interpretation and application of the U.S. Constitution and state constitutions Statutory Law the body of laws created by legislative statutes. None of these laws can violate the U.S constitution Administrative Law the body of rules and regulations and orders and decisions created by administrative agencies of government Case Law […]

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IMBA International Business Law

Law rules of order that dictate some minimum expectation for how to live in a society for civility and reduced chaos with reasonable protections of rights and minimal interference of others rights Burden of Proof (2) obligation to prove one’s assertion, always rests on plaintiff Types of Law (2) criminal, civil Main civil theories (2) […]

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Business Law 1 (first exam review)

1. Jurisdiction The authority of a court to hear and decide a case. To make a legally valid decision in a case, a court must have both “subject matter jurisdiction” (power to hear the type of case in question, which is granted by the state legislatures and Congress). 2. Venue The appropriate location according to […]

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Business Law (Ch. 5 —> Ch. 12)

Contract Any agreement enforceable by law Equity Theory Exchange of items of equal value What do contracts do? Create both moral and legal obligations. Social Arrangements Are not contracts and not enforceable by law. (Prom date). Will Theory Wether the parties agreed to the terms set forth by the contract without duress. Formalist Theory What […]

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Business Law Definitions

Act Legislation adopted by Congress or a state legislature. Administrative Law The legal principles involved in the workings of administrative agencies with the regulatory process Breach of Contract A party’s failure to perform some contracted-for or agreed-upon act, or failure to comply w/ a duty imposed by law. Citation the reference identifying how to find […]

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Business Law Chapters 11-19

Promisor Person making the promise Promisee Person to whom the promise is made Objective Theory of Contracts intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions Requirements of a valid contract Agreement, Consideration, Contractual Capacity, Legality Offeror […]

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Business Law

The characteristics of the law is that the law is: Powerful, Important, & Fascinating The sources of contemporary law is the: US Constitution, State Constitution, Statute, Common Law, Administrative, Treaties and Executive order The reason why one bothers with ethics is because: Society as a whole benefits by encouraging economic competition. People feel better when […]

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