100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
ACG 2021 Practice Test Questions and Complete Answers CA$14.48   Add to cart
Quickly navigate to
Preview
  2.  
  3. ACG 2021
  4.  
  5. ACG 2021

Exam (elaborations)

ACG 2021 Practice Test Questions and Complete Answers
 17 views  0 purchase
  • Course
  • ACG 2021
  • Institution
  • ACG 2021

Financial Accounting 1. Measure business activity 2. Communicate measurements to people for decision making Primary external users of financial accounting info Investors and creditors Financing Activities Involves funding from external sources such as, owners of company who invest their own funds...

[Show more]

Preview 2 out of 8  pages

Document information

  • August 11, 2024
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • acg 2021 practice test questions and complete answ
  • financial accounting 1 measure business activity
  • financing activities involves funding from extern

Written for

  • ACG 2021
  • ACG 2021

Seller

avatar-seller
twishfrancis

Reviews received

Content preview

ACG 2021 Practice Test Questions and
Complete Answers
Financial Accounting ✅1. Measure business activity
2. Communicate measurements to people for decision making

Primary external users of financial accounting info ✅Investors and creditors

Financing Activities ✅Involves funding from external sources such as, owners of
company who invest their own funds into business and creditors who lend money to the
company

Investing Activities ✅Involves purchase and sale of long-term resources such as, land,
buildings, equipment, and machinery

Operating Activities ✅Involves transactions in primary operations of business/
Providing products and services to customers and associated costs of doing so Ex.
utilities, wages, rent, maintenance

Accounting Equation ✅Assets=Liabilities+Stockholders' Equity/ Resources=Claims to
resources

Accounting Equation used to ✅measure business transactions

Assets def ✅Resources owned by a company

Liabilities ✅Amounts owed to creditors

Stockholders' Equity ✅Stockholders' or owners' claims to resources

Corporation Pros ✅Limited liability: Only lose how much you invested/ Not obligated to
pay corporation's debts

Corporation Cons ✅Double taxation:
1. @ corporate level (taxed more)
2. @ personal income tax when dividends are distributed (less of a tax)

CPA ✅Certified Public Accountant- serves general public

CMA ✅Certified Management Accountants- specialize in accounting and financial
management for private industries

, Generally Accepted Accounting Principles (GAAP) ✅Rules of financial accounting

Functions of GAAP ✅Allows comparison of financial info among companies

Financial Accounting Standards Board (FASB) ✅Independent private body that has
primary responsibility for the establishment of GAAP in the U.S.

Functions of FASB ✅Creates rules and standards that govern financial accounting/
Responsibility, but not authority, to set standards

SEC ✅Securities and Exchange Commission

Functions of SEC ✅Oversees US financial markets/ Requires companies that publicly
trade stock to prepare financial statements for investors and creditors

Auditors ✅Trained individual hired by a company as an independent party to express
professional opinion of accuracy of that company's financial statements/ Makes sure
financial statements are in accordance with GAAP/ Add credibility

Flow of Accounting ✅GAAP(rules) formulated by FASB -> Accounting Equation:
Assets=Liabilities+Stockholders' Equity -> Income Statement -> Statement of
Stockholders' Equity -> Balance Sheet -> Statement of Cash Flows

Cash ✅Liquid assets

Accounts Receivable ✅Amounts the company expects to collect from customers

Notes Receivable ✅Amounts company expects to collect from a party who has a
signed promissory note with company

Inventory ✅Items for sale by company

Supplies ✅Items that will be consumed by the company during the operation of the
business Ex. copy toner, pens, pencils

Prepaid expenses ✅Costs of assets acquired in one period that will be expensed in a
future period, such as advertisements, rent, insurance, and supplies Ex. prepaying six
months of car insurance

Property, Plant, Equipment ✅Land, buildings, computers, store fixtures, manufacturing
equipment used in the operation of the business

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller twishfrancis. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$14.48. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75632 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$14.48
  • (0)
  Add to cart