Financial Accounting Chapter 1 Overview

<p>Financial, investing, and operating activities (A)</p> Signup and view all the answers

<p>Joint venture (D)</p> Signup and view all the answers

<p>To establish a standard set of rules for accounting information (D)</p> Signup and view all the answers

<p>Financial statements, management discussion and analysis, and auditor's report. (C)</p> Signup and view all the answers

<p>Financing (A)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>Diagnostic (A)</p> Signup and view all the answers

<p>Limited liability for the owner (C)</p> Signup and view all the answers

<p>Partnership (B)</p> Signup and view all the answers

<p>Corporations are subject to double taxation. (C)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>All of the above. (D)</p> Signup and view all the answers

<p>Public corporation (A)</p> Signup and view all the answers

<p>Statement of Financial Position (C)</p> Signup and view all the answers

<p>To show the changes in each component of shareholders' equity over a period of time (D)</p> Signup and view all the answers

<p>Assets = Liabilities + Shareholders' Equity (B)</p> Signup and view all the answers

<p>The Statement of Income depicts a period of time, while the Statement of Financial Position depicts a point in time. (A)</p> Signup and view all the answers

<p>All of the above (D)</p> Signup and view all the answers

<p>Dividends Paid (A)</p> Signup and view all the answers

<p>Statement of Cash Flows (C)</p> Signup and view all the answers

<p>Revenues - Expenses (A)</p> Signup and view all the answers

<p>Both the effect of the company's operating, investing, and financing activities on cash and the net increase or decrease in cash for the period. (B)</p> Signup and view all the answers

<p>The statement of cash flows uses data from the statement of financial position to calculate cash flows. (D)</p> Signup and view all the answers

<p>A company's strategic plan for the next five years. (D)</p> Signup and view all the answers

<p>IFRS is used for public companies and ASPE for private companies. (A)</p> Signup and view all the answers

<p>A statement of changes in equity includes all changes in equity, while a statement of retained earnings only includes changes in retained earnings. (A)</p> Signup and view all the answers

<p>IFRS is a set of accounting standards used by publicly traded corporations globally (A)</p> Signup and view all the answers

<p>Statement of Income (B)</p> Signup and view all the answers

<p>To provide an opinion on the fairness of the financial statements. (D)</p> Signup and view all the answers

<p>Financing Activities (D)</p> Signup and view all the answers

<p>Borrowing money from a bank (A)</p> Signup and view all the answers

<p>Operating Activities (C)</p> Signup and view all the answers

<p>Issuing bonds to investors (C)</p> Signup and view all the answers

<p>Signing a lease for a new store (D)</p> Signup and view all the answers

<p>Billing clients for services rendered (A)</p> Signup and view all the answers

<p>Private corporations can use either IFRS or ASPE for external reporting. (C)</p> Signup and view all the answers

<p>Publicly traded corporations must follow IFRS, while private corporations can choose between IFRS or ASPE. (A)</p> Signup and view all the answers

Individuals or entities that use accounting information for decision making.

Individuals within an organization who use financial information, such as managers and employees.

Individuals or entities outside of an organization that use financial information, like investors and creditors.

Standards and principles guiding honest and accurate presentation of financial information.

Different structures under which businesses operate, including proprietorships, partnerships, and corporations.

Three main activities: financing, investing, and operating, that businesses engage in.

Formal records summarizing the financial activities of a business, providing a clear picture of its financial status.

Core components of an annual report including financial statements, management discussion, and notes.

Financial report detailing cash effects of operating, investing, and financing activities.

Cash flows from core business operations, including sales and expenditures.

Cash flows related to buying or selling long-term assets like property.

Cash flows from transactions with the company's owners or creditors.

Financial statements that use data from each other for comprehensive reporting.

Mandatory publication for public corporations containing financial statements and analyses.

Section of an annual report where management explains financial results and company performance.

International Financial Reporting Standards (IFRS) are for public, while ASPE is for private enterprises' accounting.

Reports revenues and expenses for a specific period of time.

Inflow of assets from sale of products or services.

Costs of assets consumed or services used to generate revenues.

Profit or loss calculated as Revenues minus Expenses.

Reports changes in each component of shareholders’ equity over time.

Claims of shareholders on assets after liabilities are paid.

Shows assets, liabilities, and shareholders’ equity at a specific point in time.

Assets = Liabilities + Shareholders’ Equity.

Generally Accepted Accounting Principles for preparing financial statements.

International Financial Reporting Standards used by publicly-traded corporations.

Accounting Standards for Private Enterprises used by private corporations.

The three main activities: Financing, Investing, Operating.

Obtaining funds by issuing or repurchasing shares.

Analyzing data using software and statistics to draw conclusions.

Analyzes past data to understand what happened.

Explains why something happened based on data analysis.

Uses data to forecast what is likely to happen in the future.

Suggests actions based on data findings and predictions.

A business owned by one person, offering simplicity and control but with unlimited liability.

A separate legal entity owned by shareholders, allowing limited liability and easier capital raising.