Podcast
Questions and Answers
Which of the following best describes the primary focus of financial accounting?
Which of the following best describes the primary focus of financial accounting?
- Preparing internal reports for management decision-making.
- Managing tax compliance and minimizing tax liabilities.
- Analyzing operational efficiency and streamlining production processes.
- Preparing financial statements for external users in accordance with GAAP. (correct)
The fundamental accounting equation states that:
The fundamental accounting equation states that:
- Assets = Liabilities + Equity (correct)
- Assets + Liabilities = Equity
- Assets = Liabilities - Equity
- Revenue - Expenses = Net Income
Which financial statement reports a company's financial performance over a period of time?
Which financial statement reports a company's financial performance over a period of time?
- Balance Sheet
- Statement of Cash Flows
- Income Statement (correct)
- Statement of Changes in Equity
According to GAAP, revenue is recognized when:
According to GAAP, revenue is recognized when:
Which of the following is classified as a current asset?
Which of the following is classified as a current asset?
Which activity is classified as a cash flow from financing activities?
Which activity is classified as a cash flow from financing activities?
The principle that requires expenses to be recognized in the same period as the revenues they helped generate is known as the:
The principle that requires expenses to be recognized in the same period as the revenues they helped generate is known as the:
Which of the following ratios is used to assess a company's ability to meet its short-term obligations?
Which of the following ratios is used to assess a company's ability to meet its short-term obligations?
What is the purpose of closing entries in the accounting cycle?
What is the purpose of closing entries in the accounting cycle?
Which assumption states that a business will continue to operate in the foreseeable future?
Which assumption states that a business will continue to operate in the foreseeable future?
What is the correct order of the following steps in the accounting cycle?
What is the correct order of the following steps in the accounting cycle?
Which of the following is an example of a contra asset account?
Which of the following is an example of a contra asset account?
If a company uses the indirect method for the statement of cash flows, which of the following is added back to net income to arrive at cash flow from operating activities?
If a company uses the indirect method for the statement of cash flows, which of the following is added back to net income to arrive at cash flow from operating activities?
Which principle dictates that only information significant enough to influence the decisions of users needs to be disclosed?
Which principle dictates that only information significant enough to influence the decisions of users needs to be disclosed?
What is the effect on the accounting equation when a company purchases equipment with cash?
What is the effect on the accounting equation when a company purchases equipment with cash?
Which of the following best describes 'unearned revenue'?
Which of the following best describes 'unearned revenue'?
A company's debt-to-equity ratio is an example of what type of ratio?
A company's debt-to-equity ratio is an example of what type of ratio?
What is the first step in the accounting cycle?
What is the first step in the accounting cycle?
What is the primary difference between IFRS and GAAP?
What is the primary difference between IFRS and GAAP?
Which of the following accounts would be increased with a debit entry?
Which of the following accounts would be increased with a debit entry?
Flashcards
Accountancy
Accountancy
Recording, classifying, summarizing, and interpreting financial transactions for decision-making.
Financial Accounting
Financial Accounting
Preparing financial statements for external users (investors, creditors, regulators).
Assets
Assets
Resources controlled by a company expected to provide future economic benefits.
Liabilities
Liabilities
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Equity
Equity
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Revenue
Revenue
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Expenses
Expenses
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Accounting Equation
Accounting Equation
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GAAP
GAAP
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Income Statement
Income Statement
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Balance Sheet
Balance Sheet
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Statement of Cash Flows
Statement of Cash Flows
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Statement of Changes in Equity
Statement of Changes in Equity
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Gross Profit
Gross Profit
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Accrual Accounting
Accrual Accounting
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Matching Principle
Matching Principle
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Going Concern Assumption
Going Concern Assumption
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Consistency Principle
Consistency Principle
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Conservatism Principle
Conservatism Principle
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Materiality Principle
Materiality Principle
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Study Notes
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