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
Business 101 Midterm 2 Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution £6.53
Add to cart
Quickly navigate to
Preview
  2.  
  3. Biology 101
  4.  
  5. Biology 101
  6.  
  7. Biology 101

Exam (elaborations)

Business 101 Midterm 2 Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution

 0 purchase

Business 101 Midterm 2 Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution

Preview 3 out of 21  pages

Document information

  • June 17, 2024
  • 21
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • business 101 midterm 2 questions with 100 actual

Written for

All documents for this subject (473)

Seller

avatar-seller
DoctorHkane

Reviews received

Content preview

Business 101 Midterm 2
What is accounting? - ANS-An information system that:
1) MEASURES business activities (performance/profitability, financial position, and cash
flows)
2) ORGANIZES this data into usable information
3) ANALYZES this information (key)

"The Language of Business" - ANS-Communicate, Describe (tell stories), Comprehend

Without fluency in accounting there is no ability to? - ANS-Assess (gauge performance,
position, etc
Analyze and understand
Describe or predict

What is accounting not? - ANS-only about the numbers
knowing the rules
maintaining records

Accounting is more like a profession like a law firm (T/F) - ANS-True
It's about research, interpretation, precedent, analysis, judgement, ethics

GAAP - ANS-Generally Accepted Accounting Principles (modify rules, rule keepers)

FASB - ANS-Financial Accounting Standards Board

GAAP and FASB are? - ANS-agreed designed rules and ensure that the communication
of financial information is consistent and systematic (point of having the rules)

Financial Accouting - ANS-Accounting information and analyses prepared for people
outside the organization

Managerial Accounting - ANS-Accounting used to provide information and analyses to
managers within the organization to assist them in decision making

Financial Accounting Characteristics - ANS--specific time period
-legal/regulatory requirements
-specific format
-concentrates on the business as a whole

,-mainly presented in monetary terms
-always historical

Managerial Accounting Characteristics - ANS--no specific time period
-no legal/regulatory requirements
-no specific format
-look at any part of business
-monetary or non monetary
-historical or projected

Accrual Accounting - ANS-reports revenue WHEN EARNED and expenses WHEN
INCURRED
GAAP approved

Cash Accounting - ANS-Revenue is recorded when cash is received and expenses are
recorded when cash is paid out
"when cash changes hands"

Cash method main criticism? - ANS-Cash method is simple and easy, but limited
The main criticism of it is that it often leaves a time gab between associated revenue
and expenses
Does not do a good job of matching
(no cash receivable)

Matching Concept - ANS-The idea that revenue should be offset against expenses on
the basis of their cause and effect relationship

Public Accountants - ANS-Accountants that provide services to organizations for a fee-
referred to as CPA
Has the right to officially express an unbiased opinion regarding accuracy of the client's
financial statements

Private (industry) Accountants - ANS-Accountants who are employed either by
businesses or government agencies

Conflict of Interest - ANS-lawmakers already fret that consulting and tax advisory can be
in conflict with auditing
consulting and tax advisory will bias the accounting firms opinion

Accounting Equation - ANS-Assets=Liabilities+stockholders equity

, assets are the economic
liabilities+stockholders equity are sources of financing for economic resources or claim
on the resources

Double entry bookkeeping - ANS-Every action there is a reaction
For every debit there is a credit

Credit entries represent sources of financing and debit entries represent the use of that
financing (T/F) - ANS-True
It maintains the balance of the accounting equation

Judgement is crucial in accounting (T/F) - ANS-True

Accounting Cycle - ANS-Analyze source documents
Record Transactions
Post transactions
Prepare financial statements

Consistent & Systematic= - ANS-Accuracy & Integrity which hopefully leads to some
sort of truth
but accounting is as much an art as science

How do accountants makes decisions? - ANS-On judgement and subjectivity

Three key financial statements? - ANS-Balance Sheet
Income Statement
Statement of cash flows

Definition of Financial statements? - ANS-Financial statements summarize the financial
activities of the business

The Income Statement? - ANS-R-C=P
The income statement reports the revenues minus expenses of the accounting period

What does the income statement show? - ANS-Shows managers and owners whether
the company made or lost money during the period being reported

What are the results of the income statement? - ANS-It's about performance during an
accounting period

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 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 DoctorHkane. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £6.53. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69411 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 15 years now

Start selling
£6.53
  • (0)
Add to cart
Added