Fucking Financial Accounting Test 1

An information system that measures, processes, and communicates financial information about an economic entity

Asset = liabilities + stock holders equity

The amount over par value in a corporations contributed capital

The recording of all business transaction in terms of money

The most important body for developing rules on accounting practice

The process of generating and communicating accounting information in the form of financial statements to those outside the organization

Competence and diligence in carrying professional responsibilities

Distributions to stockholders of assets (usually cash) generated by past earnings

The economic resources of a company that are expected to benefit future operations

The people who have overall responsibility for operating a business and meeting its goals

The process of producing accounting information for internal use by managers

The process of producing accounting information for external use by managers

True

False

True

False

The most common form of stock

The financial statement that shows a business's assets, liabilities, and stock holders equity as of specific date. also called the statement of financial position

The value of one currency in terms of another

The economic resources of a company that are expected to benefit future operations

The inflows and outflows of cash into and out of a business

The most common form of stock

Activities undertaken by management to spend capital in productive ways that will help a business achieve its objectives

Having enough cash available to pay debts when they are due

A business's present obligations to pay cash, transfer assets, or provide services to other entities in the future

The oversight of a corporation's management and ethics by the board of directors

A code of conduct that addresses whether actions are right or wrong

Represents the claims of the owners of a corporation (the shareholders) to the assets of the business.

Decreases in stockholders equity that result from operating a business

Increases in stockholders equity that result from operating a business

Increases in stockholders equity that result from operating a business

Decreases in stockholders equity that result from operating a business

Stockholders' equity that has been generated by business operations and kept for use in the business

Impartiality and intellectual honesty

The recording of all business transactions in terms of money

A business that is owned by two or more people and that is incorporated

A business that is owned by two or more people and that is not incorporated

A business unit granted a state charter recognizing it as separate legal entity having it own rights, privileges, and liabilities distinct from those of its owners.

The economic resources of a company that are expected to benefit future operations

True

False

True

False

Stockholders, who invest or may invest in a business and acquire a part ownership in it are interested in its past success and its potential earnings.

Most companies borrow money for both long and short-term operating needs. those who lend money or deliver goods and services before being paid, are interested mainly in whether a company will have the cash to pay interest charges and to repay the debts at the appropriate time.

Stockholders, who invest or may invest in a business and acquire a part ownership in it are interested in its past success and its potential earnings.

Most companies borrow money for both long and short-term operating needs. those who lend money or deliver goods and services before being paid, are interested mainly in whether a company will have the cash to pay interest charges and to repay the debts at the appropriate time.

The determination of when a business transaction should not be recorded

The determination of when a business transaction should be recorded

The simplest form of account, which is used to analyze transactions

True

False

A book or file that contains all of a companys accounts arranged in the order of the chart of accounts.

The practice of recording transactions at cost

The simplest and most flexible type of journal

True

False

True

False