Podcast
Questions and Answers
Which statement best describes accounting?
Which statement best describes accounting?
- The process of distributing financial information to investors
- The process of identifying, recording, and summarizing economic information (correct)
- The process of making financial decisions
- The process of creating financial statements for internal use
Who are the intended users of financial accounting information?
Who are the intended users of financial accounting information?
- Top executives
- Managers
- Investors (correct)
- Stockholders
Where can you find a company's financial statements in the US?
Where can you find a company's financial statements in the US?
- Balance Sheet
- Income Statement
- Form 10-K (correct)
- Annual report
Which one of these is the correct equation for the balance sheet?
Which one of these is the correct equation for the balance sheet?
What are current assets?
What are current assets?
What is the purpose of double-entry accounting?
What is the purpose of double-entry accounting?
Which term refers to the residual ownership of a corporation?
Which term refers to the residual ownership of a corporation?
What is the term for the amount of money that stock is sold for above its par value?
What is the term for the amount of money that stock is sold for above its par value?
What is the term for the set of common measurement principles used to report information on financial statements?
What is the term for the set of common measurement principles used to report information on financial statements?
What is the term for the third-party that examines information used to prepare financial statements and provides assurances about their credibility?
What is the term for the third-party that examines information used to prepare financial statements and provides assurances about their credibility?
Which one of these is a long-term asset?
Which one of these is a long-term asset?
Which one of these is an economic obligation of a company?
Which one of these is an economic obligation of a company?
Which one of these is the equation for owners' equity?
Which one of these is the equation for owners' equity?
What is the term for a separate economic unit within an organization?
What is the term for a separate economic unit within an organization?
What is the term for the goods held by a company for the purpose of sale to consumers?
What is the term for the goods held by a company for the purpose of sale to consumers?
What is the term for a liability that results from the purchase of goods or services on open account?
What is the term for a liability that results from the purchase of goods or services on open account?
What is the term for an asset that states the debt owed by the buyer and the terms of repayment?
What is the term for an asset that states the debt owed by the buyer and the terms of repayment?
What is the term for a transaction that affects more than two accounts?
What is the term for a transaction that affects more than two accounts?
What is the term for a person or entity to whom the company owes money?
What is the term for a person or entity to whom the company owes money?
What is the term for a business organization created under the State laws of the United States, whose owners have limited liability?
What is the term for a business organization created under the State laws of the United States, whose owners have limited liability?
Which statement best describes financial accounting?
Which statement best describes financial accounting?
What is the purpose of an accounting system?
What is the purpose of an accounting system?
What is the main purpose of the annual report?
What is the main purpose of the annual report?
Which agency is responsible for dealing with publicly-traded stock in the US?
Which agency is responsible for dealing with publicly-traded stock in the US?
Which financial statement reports the company's assets, liabilities, and shareholders' equity at a specific point in time?
Which financial statement reports the company's assets, liabilities, and shareholders' equity at a specific point in time?
What is the term for the process of identifying, recording, and summarizing economic information?
What is the term for the process of identifying, recording, and summarizing economic information?
Who are the intended users of management accounting information?
Who are the intended users of management accounting information?
What is the term for the set of steps an organization uses to record financial data and convert them into informative financial statements?
What is the term for the set of steps an organization uses to record financial data and convert them into informative financial statements?
What is the term for the company's past performance and future projections?
What is the term for the company's past performance and future projections?
Where can you find a company's financial statements in the US?
Where can you find a company's financial statements in the US?
Which term refers to the amount of capital invested by shareholders in a corporation?
Which term refers to the amount of capital invested by shareholders in a corporation?
What is the term for the amount of money that stock is sold for above its par value?
What is the term for the amount of money that stock is sold for above its par value?
What is the term for the individuals who have a residual ownership of a corporation?
What is the term for the individuals who have a residual ownership of a corporation?
What is the term for the top manager of a company elected by the members of the board of directors?
What is the term for the top manager of a company elected by the members of the board of directors?
What is the term for the broad concepts and detailed practices followed in preparing and distributing financial statements?
What is the term for the broad concepts and detailed practices followed in preparing and distributing financial statements?
Which institution is responsible for establishing the US GAAP and compiling all standards into one big database called FASB Accounting Standards Codification?
Which institution is responsible for establishing the US GAAP and compiling all standards into one big database called FASB Accounting Standards Codification?
Which institution was established to develop a single set of high-quality, understandable and enforceable global accounting standards?
Which institution was established to develop a single set of high-quality, understandable and enforceable global accounting standards?
What is the term for the services provided by a third-party (public accounting firm) that examines information used to prepare financial statements and provides assurances about their credibility?
What is the term for the services provided by a third-party (public accounting firm) that examines information used to prepare financial statements and provides assurances about their credibility?
What is the term for the par-value of the stock purchased by common shareholders of a corporation?
What is the term for the par-value of the stock purchased by common shareholders of a corporation?
What is the term for the amount of US dollars printed on stock certificates, required by many states?
What is the term for the amount of US dollars printed on stock certificates, required by many states?
Which one of these is the correct definition of the fiscal year?
Which one of these is the correct definition of the fiscal year?
Which one of these is the correct definition of revenues?
Which one of these is the correct definition of revenues?
Which one of these is the correct definition of expenses?
Which one of these is the correct definition of expenses?
Which one of these is the correct definition of income?
Which one of these is the correct definition of income?
Which one of these is the correct definition of retained earnings?
Which one of these is the correct definition of retained earnings?
Which one of these is the correct definition of accounts receivable?
Which one of these is the correct definition of accounts receivable?
Which one of these is the correct definition of cost of goods sold?
Which one of these is the correct definition of cost of goods sold?
Which one of these is the correct definition of accrual basis?
Which one of these is the correct definition of accrual basis?
Which one of these is the correct definition of cash basis?
Which one of these is the correct definition of cash basis?
Which one of these is the correct definition of revenue recognition criteria?
Which one of these is the correct definition of revenue recognition criteria?
Which of the following is a requirement for revenues to be recognized under the accrual basis?
Which of the following is a requirement for revenues to be recognized under the accrual basis?
What is the purpose of the matching method in recognizing revenues?
What is the purpose of the matching method in recognizing revenues?
What are period costs?
What are period costs?
What is the net income on an income statement?
What is the net income on an income statement?
When expenses exceed revenues, what do we call it?
When expenses exceed revenues, what do we call it?
Where are cash dividends recorded in financial statements?
Where are cash dividends recorded in financial statements?
What does the Statement of Stockholder's Equity show?
What does the Statement of Stockholder's Equity show?
What are the sources of changes in stockholder's equity?
What are the sources of changes in stockholder's equity?
What is the purpose of double-entry accounting?
What is the purpose of double-entry accounting?
What are current assets?
What are current assets?
Which one of these is the correct definition of interim periods?
Which one of these is the correct definition of interim periods?
Which one of these is the correct definition of revenue?
Which one of these is the correct definition of revenue?
Which one of these is the correct definition of expenses?
Which one of these is the correct definition of expenses?
Which one of these is the correct definition of income?
Which one of these is the correct definition of income?
Which one of these is the correct definition of retained earnings?
Which one of these is the correct definition of retained earnings?
Which one of these is the correct definition of accounts receivable?
Which one of these is the correct definition of accounts receivable?
Which one of these is the correct definition of cost of goods sold?
Which one of these is the correct definition of cost of goods sold?
Which one of these is the correct definition of net income?
Which one of these is the correct definition of net income?
What is the term for the distribution of cash to stockholders?
What is the term for the distribution of cash to stockholders?
Which one of these is the correct definition of the Statement of Stockholder's Equity?
Which one of these is the correct definition of the Statement of Stockholder's Equity?
What are the sources of changes in stockholder's equity?
What are the sources of changes in stockholder's equity?
Where are cash dividends recorded in financial statements?
Where are cash dividends recorded in financial statements?
What is the term for a business organization created under the State laws of the United States, whose owners have limited liability?
What is the term for a business organization created under the State laws of the United States, whose owners have limited liability?
What is the term for the set of steps an organization uses to record financial data and convert them into informative financial statements?
What is the term for the set of steps an organization uses to record financial data and convert them into informative financial statements?
What is the term for a liability that results from the purchase of goods or services on open account?
What is the term for a liability that results from the purchase of goods or services on open account?
Which one of these is the correct definition of retained earnings?
Which one of these is the correct definition of retained earnings?
What is the term for the original acquisition cost of the inventory that a company sells to customers during the reporting period?
What is the term for the original acquisition cost of the inventory that a company sells to customers during the reporting period?
Which one of these is the correct definition of accrual basis?
Which one of these is the correct definition of accrual basis?
What is the term for the increase in net assets from the sale of goods and services?
What is the term for the increase in net assets from the sale of goods and services?
Which one of these is the correct definition of cash basis?
Which one of these is the correct definition of cash basis?
What is the term for the excess of revenues over expenses?
What is the term for the excess of revenues over expenses?
What is the term for the liability that results from the purchase of goods or services on open account?
What is the term for the liability that results from the purchase of goods or services on open account?
What is the purpose of the Income Statement?
What is the purpose of the Income Statement?
What is the definition of net income?
What is the definition of net income?
What is the purpose of the Statement of Stockholder's Equity?
What is the purpose of the Statement of Stockholder's Equity?
What are the sources of changes in stockholder's equity?
What are the sources of changes in stockholder's equity?
What is the definition of cost of goods sold?
What is the definition of cost of goods sold?
What is the definition of accounts receivable?
What is the definition of accounts receivable?
What is the definition of accrual basis?
What is the definition of accrual basis?
Which of the following is a requirement for revenues to be recognized under the accrual basis?
Which of the following is a requirement for revenues to be recognized under the accrual basis?
