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Financial and Managerial Accounting Questions And Answers $13.49   Add to cart

Exam (elaborations)

Financial and Managerial Accounting Questions And Answers

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  • Course
  • FINC - Finance
  • Institution
  • FINC - Finance

Sarbanes-Oxley Act (SOX) ~ Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial statements. Securities and Exchange Commission (SEC) ~ U.S. government agency that oversees the U.S. financial market. Sole Proprietorship ...

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  • August 8, 2024
  • 36
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • FINC - Finance
  • FINC - Finance
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Financial and Managerial
Accounting Questions And
Answers

What is the accounting equation?


✓~ Assets = Liability + Owners' Equity




Please explain the 3 parts of the accounting equation


✓~ Assets = Cash, Accounts Receivable (AR), trademarks/patents, investments




Liabilities = claims by debtors, Accounts Payable (AP)




Equity = claims by the owner




Debit is always on the _________ and Credit is always on the _________.


✓~ Debit is on the LEFT and credit is on the RIGHT.

,Who is the "father of accounting" and in what year did he publish his book?


✓~ Luca Pacioli

Summa de arithmetica - 1494




Why do we need accounting?


✓~ To discover financial inconsistencies, fraud

Analyze and predict budgets


Compare different companies' financial reporting and performance




Define "accounting"


✓~ A way of recording, analyzing and summarizing transactions of a business.




What is the "language" of accounting?


✓~ Double entry bookkeeping




What is the idea of double entry?


✓~ The idea is that each entry is written down twice - Debit and Credit

,What are the three main steps of accounting?


✓~ 1. Recording the information

2. Ledgers


3. Financial statements




Cost and management accounting is concerned with providing management

information concerning what?


✓~ 1. Planning

2. Control


3. Making decisions




What are some of the roles of Managerial Accounting?


✓~ Cost accounting

Budgeting


Making management decisions


Evaluating performance


Budgeting for capital costs and making decisions


Price formation

, What are some of the roles of Managing Finance?


✓~ Planning and managing cash flows, including currency flows

Long-term financing decisions


Managing financial risks


Financing for investments


Managing working capital




What are some of aspects of preparing financial statements?


✓~ Financial reports

Tax reports and calculations


Providing other info. for external users




Who are the users of information of FA?


✓~ Shareholders, investors, banks, suppliers, credit institutions, tax collectors,

company employees and other EXTERNAL users




Who are the user of information of MA?

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