ACCT ch1. Interactive presentation
Terms in this set (34)
LO1: Financial accounting primarily deals with the methods accountants use to provide information to an organizations internal users. True or False
LO1: which of the following questions is most likely to be asked by a creditor?
Will the company be capable of repaying its debt when it is due?
LO1: Which of the following questions is most likely to be asked by an investor?
Will the company stock increase in value?
LO2: Ron owns five percent of a corporations common stock. The concept of limited liability would imply that Ron is personally responsible for only fiver percent of the financial obligations of the corporation.
LO2: Which of the following is. feature of the corporate form of business ownership?
LO2: Which of the following is an alternate form of the accounting equation?
LO2: The value of a company to its owners equals total resources of the company. TRUE or FALSE
LO2: amounts owed to a supplier of dress material
LO2: salaries paid to employees
LO2: share of profits paid to owners of a company
LO2: consulting fees earned by a firm
LO2: trucks owned by a transportation company
LO3: Which of the following demonstrates that the company resources equal creditors claims plus owners climbs to those resources?
The balance sheet
LO3: the balance of retained earnings represents the account of earnings paid out in the form of divides to stockholders. TRUE or FALSE
LO3: the cash received from customers is reported s part of the ending cash balance in the valance sheet and as part of operating cash flows in the statement of cash flow. TRUE or FALSE
LO3: You are reading. Particular section f a banks annual report. This section provides the banks views about the impact of a upcoming regulation on the banking industry as a whole and the bank in particular. Which section of the annual report are you reading?
Management discussion and analysis
LO3: this statement tells you if a company is profitable.
the income statement
LO3: this statement has two components: common stock and retained earnings.
the statement of stockholders equity
LO3: this statement shows the net change in cash over the period
the statement of cash flows
LO3: this statement reports the financial position of a company at a point in time
the balance sheet
LO4: which of the following best explains a company's stock price performance?
LO4: which of the following is an important indicator of a company management's ability to respond to business situations and the possibility of bankruptcy?
-total stockholders equity
LO4: if you are able to predict the change in financial accounting's measure of profitability, you can predict the change in stock prices, too.
TRUE or FALSE
LO4: investors and creditors rely heavily on managerial accounting information in making investment and lending decisions.
TRUE or FALSE
body responsible for establishing financial accounting and reporting standards in the United States
Agency with both the power and the responsibility for setting accounting and reporting standards for publicly traded companies in the U.S.
Standard-setting body responsible for convergence of accounting standards across countries.
LO5: what was the objective of the 1933 Securities Act?
-it set forth accounting and disclosure requirements for initial offerings of securities.
-it provided for the regulation of auditors and the types of services they furnish to clients
-it paved the way for the creation of the Public Company Accounting Oversight Board
- it created a government agency, the Securities and Exchange Commission (SEC)
it set forth accounting and disclosure requirements for initial offerings of securities
LO5: which government agency has the authority to set accounting and reporting standards in the United States?
-International Accounting Standards Board
-Securities and Exchange Commission
-Public Company Accounting Oversight Board
-Financial Accounting Standards Board
securities and exchange commission
LO5: all companies in the United States must follow Generally Accepted Accounting Principles and must publish financial statements in accordance with those rules.
TRUE or FALSE
LO5: if mistakes or fraudulent reporting behavior are discovered, auditors require the company to correct all significant information before issuing financial statements.
TRUE or FALSE
LO6: which of the following is true of public accounting?
-a career in public accounting means providing accounting services to the company that employs you
-a public accountant usually gets to work with multiple clients
-public accountants almost always earn higher starting salaries
-one who takes up a public accounting career will invariable work for the government
a public accountant usually gets to work with multiple clients
LO6: from the list that follows, identify a company wehre a private accountant could possible work.
-ernst & young
LO6: with a finance degree, you can apply for almost any position available to accounting majors
TRUE or FALSE
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