Accounting Exam 1 (Session 2 - Session 8-A)

Accounting....

• Is the language of business

• communicates economic events

• provides information about a company's performance and financial position that's useful for making decisions

• used in all aspects of business

Who are the users of accounting information?

• Financial accounting users are external (investors, debt-holders, and other people outside the company)

• Managerial accounting users are internal

• Tax accounting users are government entities

• Tax accounting users are internal

Which overseer of financial reporting keeps companies in check and makes sure another stock market crash does not happen?

• SEC

• FASB

• IASB

• PCAOB

Which overseer of financial reporting makes the U.S. financial reporting rules?

• SEC

• FASB

• PCAOB

• IASB

Which overseer of financial reporting makes the financial reporting rules for the world?

• SEC

• FASB

• IASB

• PCAOB

Which overseer of financial reporting regulates the U.S. auditing industry?

• SEC

• FASB

• IASB

• PCAOB

Produced at the ends of fiscal years to see how a company is balancing out. Assets = liabilities + SH's equity. Answers the question of what is the financial condition of the organization on a given day.

(a)  

Produced in between when balance sheets are produced. Revenue - expenses = net income. Answers the question how well did the organization do during a given period.

(a)  

Produced in between when balance sheets will be produced. Cash Flows in operations + cash flows in investing + cash flows in financing = net change in $. Answers the question of how well did the organization do during a given period.

(a)  

Retained earnings = net income - (a)