Accounting - Answer-The information system that identifies, records, and communicates the economic events of an organization to interested users
Auditor's Report - Answer-A report prepared by an independent outside auditor stating the auditor's opinion as to the fairness of the presentation of t...
Financial Accounting Exam 1 - Chapters
1-3 Exam Questions and Answers
Accounting - Answer-The information system that identifies, records, and communicates
the economic events of an organization to interested users
Auditor's Report - Answer-A report prepared by an independent outside auditor stating
the auditor's opinion as to the fairness of the presentation of the financial position and
results of operations and their conformance with GAAP
Balance Sheet - Answer-Reports the assets and claims to those assets (liabilities and
SE) at a specific point in time
Basic Accounting Equation - Answer-Assets = Liabilities + SE
CPA - Answer-Certified Public Accountant - Individual has met certain criteria and
allowed to perform audits of corporations
Common Stock - Answer-Term used to describe the total amount paid in by
stockholders for the shares they purchase
Corporation - Answer-A business organized as a separate legal entity owned by
stockholders
Income Statement - Answer-Reports a company's revenues and expenses and resulting
net income or loss for a specific period of time
Liabilities - Answer-Amounts owed to creditors in the form of debts and other obligations
Management Discussion and Analysis (MD&A) - Answer-A section of the annual report
that presents management views on the company's ability to pay near-term obligations,
its ability to fund operations and expansion, and its results of operations
Partnership - Answer-A business owned by 2 or more persons associated as partners
Retained Earnings - Answer-The amount of net income retained in the corporation
Sarbanes-Oaxley Act (SOX) - Answer-Regulations passed by Congress to reduce
unethical corporate behavior
Sole Proprietorship - Answer-A business owned by one person
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