Exam (elaborations)
INTERMEDIATE ACCOUNTING I - EXAM #1 QUESTIONS WITH COMPLETE SOLUTIONS
- Course
- Institution
INTERMEDIATE ACCOUNTING I - EXAM #1 QUESTIONS WITH COMPLETE SOLUTIONS
[Show more]
Content preview
INTERMEDIATE ACCOUNTING I - EXAM#1 QUESTIONS WITH COMPLETE
SOLUTIONS
Internal Users - Answer-make decisions directly affecting the internal operations of the
enterprise
Ex. Management, Employees
External Users - Answer-are outside the company
Ex. Investors, Creditors, Government Agencies (SEC, IRS), Suppliers, Customers
Management Accounting - Answer-intended for internal users. Company specifies what
accounting information is needed and how is to be reported
Financial Accounting - Answer-intended primarily for external users. Generally accepted
accounting principles (GAAP) specify information needed and how it is to be reported
Securities and Exchange Commission (SEC) - Answer-has the legal authority to
establish accounting standards for firms with publicly traded stock and occasionally
does. However, usually relies on private-sector organizations (e.g., FASB) to set
accounting standards in the U.S.
FASB (Financial Accounting Standards Board) - Answer-currently recognized as the
private-sector body responsible for setting U.S. accounting standards.
Generally Accepted Accounting Principles (GAAP) - Answer-accounting standards
recognized by the accounting profession as required in the preparation of financial
statements for external users
Emerging Issues Task Force (EITF) - Answer-if reaches a consensus, defines the
generally accepted accounting treatment on an emerging accounting issue until the
FASB considers the issue.
Balance Sheet - Answer-A financial statement that reports the assets and claims to
those assets at a specific point in time.
Income Statement - Answer-A financial statement that reports a company's revenues
and expenses and resulting net income or net loss for a specific period of time.
Statement of Cash Flows - Answer-Financial statement that reports cash receipts and
disbursements related to a firm's three major activities: operations, investments, and
financing.
, Notes to the financial statements - Answer-Notes clarify information presented in the
financial statements and provide additional detail.
Auditor's Opinion - Answer-An expression about whether financial statements conform
with generally accepted accounting principles.
Economic Entity Assumption - Answer-An assumption that every economic entity can
be separately identified and accounted for.
Going Concern Assumption - Answer-The assumption that the company will continue in
operation for the foreseeable future.
Monetary Unit Assumption - Answer-An assumption that requires that only those things
that can be expressed in money are included in the accounting records.
Periodicity - Answer-the repeating pattern of chemical and physical properties of the
elements
Measurement Principle - Answer-Principle that prescribes financial statement
information, and its underlying transactions and events, be based on relevant measures
of valuation; also called the cost principle.
Revenue Recognition Principle - Answer-The principle that companies recognize
revenue in the accounting period in which the performance obligation is satisfied.
Expense Recognition Principle - Answer-The principle that matches expenses with
revenues in the period when the company makes efforts to generate those revenues.
Full Disclosure Principle - Answer-Accounting principle that dictates that companies
disclose circumstances and events that make a difference to financial statement users.
Debits - Answer-increase assets and decrease liabilities and stockholders equity.
credits - Answer-Decrease assets; increase liabilities and stockholders' equity
double-entry accounting system - Answer-A system of accounting for recording
transactions, based on recording increases and decreases in accounts so that debits
equal credits.
accouting equation - Answer-Assets = Liabilities + Owner's Equity
General Ledger - Answer-A ledger that contains all accounts needed to prepare
financial statements
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81113 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now