Mgt 8803 accounting - Study guides, Class notes & Summaries

MGT 8803 FINAL EXAM ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |ALREADY GRADED A+ What are the (5) assumptions of financial accounting? - ANSWER- 1. Separate entity 2. Unit of measurement 3. Going concern 4. Periodicity 5. Materiality What does materiality mean? - ANSWER- The only information that needs to be disclosed in financial statements is information that will be useful for those who rely on the financial statements to make deci...

MGT 8803 FINAL EXAM ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |ALREADY GRADED A+ What are the (5) assumptions of financial accounting? - ANSWER- 1. Separate entity 2. Unit of measurement 3. Going concern 4. Periodicity 5. Materiality What does materiality mean? - ANSWER- The only information that needs to be disclosed in financial statements is information that will be useful for those who rely on the financial statements to make decisions. ...

Forms of Businesses: Proprietorship & Partnership • ____________liability • No ____________ (on the business; the owner, however days pay taxes) Corporation (Shareholders -> Board of Directors -> Top Managers) • ____________ liability • Taxation (corporations pay taxes, shareholders pay taxes on earnings) • Can be ____________ traded or ____________ held. correct answer: unlimited, taxation, limited, publicly, privately Assumption that we treat the business and ...

MGT8803 - Financial Accounting Exam Latest Update...

What two things does financial accounting consist of correct answer: measuring and reporting What forms of businesses do we measure and report for? correct answer: Proprietorship, partnership, corporation What are separates a proprietorship and a partnership from a corporation correct answer: the owners and the businesses are the same entity What does unlimited liability mean? correct answer: Unlimited liability means that sole proprietors and general partners must pay all debts and...

MGT 8803 Questions with complete solutions What are the (5) assumptions of financial accounting? What does materiality mean? What are the qualities of financial statements? (6) What are the three basic financial statements? What does the balance sheet do? What are the three categories of the balance sheet? What is the accounting equation? List 6 common asset accounts. What does liquidity mean? List 4 ways to determine the value of assets. What is the cost principl...

Proprietorship correct answer: Single Owner; unlimited liability & no taxation Partnership correct answer: More than one owner; unlimited liability & no taxation Corporation correct answer: A business owned by stockholders (shareholders -> board of directors --> top managers); limited liability & taxation Publicly traded or privately held Assumptions of Financial Accounting correct answer: Separate entity, unit of measurement, going concern, periodicity, materiality Goin...

What are the three forms of business? correct answer: Proprietorship, partnership, and corporations A proprietorship/partnership has limited liability? correct answer: False What are the accounting assumptions? correct answer: Separate entity, consistent unit of measurement (currency), going concern, periodicity, and materiality Materiality correct answer: only information that would influence the decisions of a reliant party need be disclosed Periodicity correct answer: presume...

A business owned by a single owner correct answer: proprietorship A business owned by more than one owner correct answer: partnership In ___ & ___, the business and the owner(s) are legally one entity - there is unlimited liability and no taxation. correct answer: proprietorship and partnership What does unlimited liability mean? correct answer: The obligations of the business are the same as the obligations of the owners; i.e., a bank can go after the owners if the business default...

Balance Sheet correct answer: A financial statement that reports assets, liabilities, and owner's equity on a specific date. Income Statement correct answer: A financial statement showing the revenue and expenses for a fiscal period. What is net income? correct answer: Revenues - Expenses What is net income also called? correct answer: Profit or "the bottom line" What is equity source? correct answer: Amount provided by the owner. What are liabilities? correct answer: Amo...