Wgud196 - Study guides, Class notes & Summaries

Accounting plays a vital role in the decision-making process. Which action is the first step in the decision-making process. - correct answerIdentify the issues The money that a company needs to buy its land, pay its employees, and buy its supplies is called capital. What are the potential sources of capital for a business. - correct answerInvestors, creditors, and retained business earnings. Accountants measure and communicate the results of business activities. - correct answerTrue Wh...

- correct answer What is the definition of vertical analysis of financial statements? Restricting attention to companies only in certain strategic industries Displaying each line item as a percentage of another for comparison to other companies in the industry Looking across time at a common-size financial statement and noting how relationships are changing Expressing each amount as a percentage of net income for the year - correct answerDisplaying each line item as a percentage of anothe...

Unit 2: International Accounting Standards Board (IASB) - correct answerA committee formed to develop international accounting standards. Unit 2: American Institute of Certified Public Accountants (AICPA) - correct answerA professional organization for CPAs in which membership is voluntary. *Professional Sanctions* Unit 2: Certified public accountant (CPA) - correct answerAn accountant who has met specified professional requirements established by the AICPA and local and state societies. A...

What is the role and purpose of accounting? - correct answerAccounting is used to accumulate, measure, and communicate financial information about organizations. This information is used to make informed decisions regarding resource usage and allocation. Who uses accounting information and why? - correct answerManagerial Accounting: Internal decision making (managers, CEO's, supervisors, etc.) Financial Accounting: External user benefit (stakeholders, investors, tax authorities, etc.) Wh...

managerial accounting definition - correct answergathering/analysis of info for purpose of making internal decision making financial accounting definition - correct answergathering, reporting, analyzing info primarily for benefit of external users such as investors and creditors managerial accounting functions - correct answer- product costs - breakdown analysis - budgeting - performance evaluation - outsource production? financial accounting functions - correct answer- credit analy...

bookkeeping - day to day keeping of transcations steps of decision making - identify issue gather information identify alternatives select option that most likely results in desired objective accounting - analysis of events record and report financial effects of business activities where does capital come from (3) - investors creditors(lenders) business itself (from earnings retained) 2 main types of accounting - financial and managerial managerial accounting - gather and analysis of ...

What is the role and purpose of accounting ? - Role: To help track income and expenditures, and to provide investors, management, and government with financial information. Purpose: To accumulate, measure, and communicate financial information about businesses and other organizations. · Who uses accounting information and why? - Potential investors and creditors use accounting information, but basically everyone uses accounting information. They use it to make internal and external busine...

bookkeeping - correct answerday to day keeping of transcations steps of decision making - correct answeridentify issue gather information identify alternatives select option that most likely results in desired objective accounting - correct answeranalysis of events record and report financial effects of business activities where does capital come from (3) - correct answerinvestors creditors(lenders) business itself (from earnings retained) 2 main types of accounting - correct a...

Accounting System - correct answerUsed by business to: 1. Analyze transactions 2. Handle routine bookkeeping tasks 3. Use the information to evaluate business performance Analysis/Bookkeeping/Evaluation - correct answer Accounting - correct answerQuantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions Decision-Making Process - correct answer Business - correct answerAn organization operated with th...

What is the effect of a company's accounting department maintaining high ethical standards? -The company can report more favorable results in its financial statements. -The company's accounting information will decrease in value. -The company can hire fewer accountants to do the same amount of work. -The company's accounting information will increase in value. - correct answerThe company's accounting information will increase in value. Why might employees be interested in their compan...