Financial Accounting Flashcards

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 […]

Read more
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 […]

Read more
Financial Accounting Exam 1 Answers

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 […]

Read more
Financial Accounting Chapter 1 Terms

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 […]

Read more
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 […]

Read more
Accounting-managerial V.S. Financial Questions And Answers

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 […]

Read more
Financial Accounting Analysis

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 […]

Read more
Chapter 1 Managerial Accounting

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 […]

Read more
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 […]

Read more
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 […]

Read more
Financial Accounting (Ch 1-4)

Creditor lender, money supplier Debitor person or organization who is in debt or under financial obligation to another Accounting a system that collects and processes financial information about an organization and reports that information to decision makers financial activities borrowing/paying back money to lenders and receiving additional funds from stockholders or paying them dividends investing […]

Read more
Principles of Financial Accounting Chapters 1-4 Vocabulary

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 […]

Read more
Financial Accounting "Terms To Know"

Accounting This word is defined by the “basics of business” Accounting does this Identify, measure, and communicate business transactions is accomplished in this field of business Financial Accounting This is for outside users 3 basic categories of a business plan 1. Invest 2. Finance 3. Operate these three things are what The 2 parts to […]

Read more
netflixer 1

Which of the following is NOT an area in which accountants usually practice? Industrial Accounting Managerial accountants usually do which of the following? establish accounting policies Identify which of the following are considered OUTSIDE users of financial accounting information banks An example of an economic entity is a business. The form of a business organization […]

Read more
Accounting 16 Questions And Answers

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT: b. be prepared in accordance with generally accepted accounting principles What is the primary criterion for the preparation of managerial accounting reports? b. Meet the manager needs Which of the following is most associated with managerial accounting? […]

Read more
Managerial Accounting Chapter 1

Managerial Accounting Focuses on providing internal mgmt. with information it needs to run the company efficiently and effectively (internal accounting) Controlling Comparing and evaluating actual results with planned results and taking corrective action Planning Setting goals & objectives and determining how to achieve them How do managerial accounting and financial accounting differ? (managerial) -internal users […]

Read more
Accounting Tools for Business Decision Making CH1

Sole Proprietorship A business owned by one person. Partnership A business in which two or more persons combine their assets and skills. Corporation A business owned by stockholders who share in its profits but are not personally responsible for its debts. Accounting A comprehensive system for collecting, analyzing, and communicating financial information. Sarbanes Oxley Act […]

Read more
Financial Accounting Chapter 1-6

Accounting A system of analyzing, recording, and summarizing the results of a business’s operating, investing, and financing activities and then reporting them to decision makers. Accounts A standardized format that organizations use to accumulate the dollar effects of transactions on each financial statement item. Balance Sheet (Statement of Financial Position) Reports the amount of assets, […]

Read more
Financial Accounting- FOUR FINANCIAL STATEMENTS

Income Statement Revenue-Expenses= Net Income. (For the period ended) Retained Earning Statement Beginning retained earning + Net Income – dividends = Ending retained income (For the period ended) Balance Sheet Assets= Liabilities+Owner’s Equity (as end of period) Cash Flow Statement Beginning cash +/- Operating +/- Investing +/- Financing = Ending cash. (For the period ended) […]

Read more
CH 1 – Financial Accounting

What is the function and primary focus of financial accounting? Financial accounting is concerned with providing relevant financial information about various kinds of organizations to different types of external users. The primary focus of financial accounting is on the financial information provided by profit-oriented companies to their present and potential investors and creditors. What is […]

Read more
Financial Accounting Vocabulary

Accounts Payable A liability backed by the general reputation and credit standing of the debtor. Accoutning The information system that measures business activities, processes that information into reports and financial statements,and communicates the results to decision makers. Accounting Equation The most basic tool of accounting: Assets = Liabilities + Owners’ Equity. Asset An economic resource […]

Read more

Get instant access to
all materials

Become a Member