Basic accounting equation - Study guides, Class notes & Summaries

1. Explain what accounting is. Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. 2. Identify the users and uses of accounting. The major users and uses of accounting are as follows: (a) Management uses accounting information to plan, organize, and run the business. (b) Investors (owners) decide whether to buy, hold, or sell their financial interests on the basis of accounting data. (c) Creditors (supplier...

The primary purpose of accounting is to report on an organization? -Correct Answer money and valuable property. When does accounting for a business begin? -Correct Answer Before the business opens The best definition of an accountant is a person who -Correct Answer is skilled in the recording and reporting of financial transactions. Which governmental entity establishes standards, and then awards qualified individuals the Certified Public Accountant (CPA) designation? -Correct Answer St...

BMAL-590 Business Finance Exam Questions Complete Answers Current Update (Verified A+ Pass) Generally Accepted Accounting Principles (GAAP) - a set of accounting standards that is used in the preparation of financial statements developed by the Financial Accounting Standards Board (FASB) Financial Accounting Standards Board (FASB) - The primary accounting standard-setting body in the United States. examines controversial accounting topics and issues standards that, in terms of their impa...

SOUTHERN NEW HAMPSHIRE UNIVERSITY 2024 SOPHIA LEARNING - MANAGERIAL ACCOUNTING MODULES: QUESTIONS AND ANSWERS SOLVED 100% A- Compare managerial accounting concepts and financial accounting concepts. a.) Purchasing manager b.) Production manager c.) Bank manager d.) Budget manager Correct * c: Banks and credit unions are external users that rely on financial information, such as audited financial statements, to lend money. B- Which of the following is an example of an internal deci...

Solution Manual for Accounting Principles 14th Edition by Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell. Explain the building blocks of accounting: ethics, principles, and assumptions. 3. State the accounting equation, and define its components. 4. Analyze the effects of business transactions on the accounting equation. 5. Describe the four financial statements and how they are prepared. *6. Explain the career opportunities in accounting. *Note: All asterisked Questions, Brief Exe...

CHAPTER LEARNING OBJECTIVES 1. Identify the activities and users associated with accounting. Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users. The major users and uses of accounting are as follows (a) Management uses accounting information to plan, organize, and run the business. (b) Investors (owners) decide whether to buy, hold, or sell their financial interests on the basis of accounting data. (c) C...

ETS MFT BUSINESS EXAM The principal difference between variable costing and absorption costing centers on: a) whether variable manufacturing costs should be included as product costs b) whether fixed manufacturing costs should be included as product costs c) whether fixed manufacturing costs and fixed selling and administrative costs should be included as product costs d) none of these. General Bikes is debating which marketing research options to employ. The traditional p...

AAMI Accounting 1 Final Review (Bus 311) Latest Update Already Passed Account receivables are: Assets Cash is considered to be: Asset Which of the following is an example of a liability: Accounts Payable True or False - The expanded accounting equation is: Assets = Liabilities + Owner's Equity False Gross profit minus expenses equals: Net Profit Which of the following is not factored into computing Owner's Equity in the expanded Accounting equation: Owner's Equity = [Capi...

ACC 2361 EXAM 1 QUESTIONS & ANSWERS 2024/2025 Accounting Definition - ANSWERSAn information system that *identifies, records and communicates the economic events* of an organization to interested users Basic Accounting Equation - ANSWERSAssets = Liabilities + Stockholder's Equity *A = L + SE* Asset - ANSWERSEconomic resources presently controlled by the company that have measurable value & are expected to benefit the company by producing cash inflows or reducing cash outflows in...

AAMI Accounting 1 Final Review with Approved Answers. Account receivables are: ️ Assets Cash is considered to be: ️ Asset Which of the following is an example of a liability: ️ Accounts Payable True or False - The expanded accounting equation is: Assets = Liabilities + Owner's Equity ️ False Gross profit minus expenses equals: ️ Net Profit Which of the following is not factored into computing Owner's Equity in the expanded Accounting equation: ️ Owner's Equity = [Capital ...