ACCT ch1. Interactive presentation

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Terms in this set (...)

LO1: Financial accounting primarily deals with the methods accountants use to provide information to an organizations internal users. True or False
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.
false
LO2: Which of the following is. feature of the corporate form of business ownership?
Double taxation
LO2: Which of the following is an alternate form of the accounting equation?
Assets-liabilities=stockholders equity
LO2: The value of a company to its owners equals total resources of the company. TRUE or FALSE
false
LO2: amounts owed to a supplier of dress material
liabilities
LO2: salaries paid to employees
expenses
LO2: share of profits paid to owners of a company
dividends
LO2: consulting fees earned by a firm
revenues
LO2: trucks owned by a transportation company
assets
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
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
true
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?
-dividends
-net income
-accounts receivable
-preferred stock
net income
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?
-inventory
-accumulated depreciation
-total stockholders equity
-total liabilities
total liabilities
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
true
LO4: investors and creditors rely heavily on managerial accounting information in making investment and lending decisions.
TRUE or FALSE
false
LO5: FASB
body responsible for establishing financial accounting and reporting standards in the United States
LO5: SEC
Agency with both the power and the responsibility for setting accounting and reporting standards for publicly traded companies in the U.S.
LO5: IASB
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
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
true
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.
-target
-ernst & young
-KPMG
-deloitte
target
LO6: with a finance degree, you can apply for almost any position available to accounting majors
TRUE or FALSE
false