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survey of accounting
accounting test 1 and 2
50
Accounting
Undergraduate 2
10/25/2015

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Term
A system of maintaining records of a
company's operations and communicating that information to decision makers
Definition
Accounting
Term
Equation that shows a company's resources (assets) equal creditors' and owners' claims to those resources (liabilities and stockholders' equity).
Definition
Accounting equation
Term
Resources owned by a company
Definition
Assets
Term
A financial statement that presents
the financial position of the company on a particular
date.
Definition
Balance sheet
Term
An entity that is legally separate from
its owners.
Definition
Corporation
Term
Cash payments to stockholders.
Definition
Dividends
Term
Costs of providing products and
services.
Definition
Expenses
Term
Measurement of business
activities of a company and communication of those
measurements to external parties for decision-making
purposes.
Definition
Financial Accounting
Term
Periodic reports published by
the company for the purpose of providing information
to external users.
Definition
Financial Statement
Term
Transactions involving external
sources of funding.
Definition
Financial Activities
Term
The rules of financial accounting.
Definition
Generally accepted accounting principles
(GAAP)
Term
A financial statement that reports
the company's revenues and expenses over an interval
of time.
Definition
Income Statement
Term
Transactions involving the purchase and sale of (1) long-term resources such as land,
buildings, equipment, and machinery and (2) any
resources not directly related to a company's normal
operations. 
Definition
Investing Activities
Term
Difference between revenues and
expenses.
Definition
Net income
Term
Transactions involving the primary operations of the company, such as providing
products and services to customers and the associated costs of doing so, like utilities, taxes, advertising,
wages, rent, and maintenance.
Definition
Operating activities
Term
Cumulative amount of net
income earned over the life of the company that
has not been distributed to stockholders as dividends.
Definition
Retained Earnings
Term
Amounts earned from selling products
or services to customers.
Definition
Revenues
Term
Formally titled the
Public Company Accounting Reform and Investor
Protection Act of 2002, this act provides regulation
of auditors and the types of services they furnish to
clients, increases accountability of corporate execu-
tives, addresses conflicts of interest for securities
analysts, and provides for stiff criminal penalties
for violators.
Definition
Sarbanes-Oxley Act (SOX)
Term
A financial statement that
measures activities involving cash receipts and cash
payments over an interval of time.
Definition
Statement of cash flows
Term
Stockholders', or owners',
claims to resources, which equal the difference
between total assets and total liabilities.
Definition
Stockholder's equity
Term
Financial accounting does not deal with which of the following?
Definition
Making business decisions.
Term
Which of the following groups is not among the external users for whom financial statements are prepared?
Definition
Managers.
Term
Financial accounting:
Definition
Provides information primarily for external decision makers.
Term
The primary purpose(s) of financial accounting is (are) to:
Definition
Measure and record business transactions and Communicate financial results to investors and creditors.
Term
Which statement below best describes the accounting equation?
Definition
Resources of the company equal creditors' and owners' claims to those resources.
Term
Emmitt had the following final balances after the first year of operations: assets, $55,000; stockholders' equity, $25,000; dividends, $3,000; and net income, $10,000. What is the amount of Emmitt's liabilities?
Definition
$30,000
Term
Transactions of a company involving external sources of funding are referred to as:
Definition
Financing activities.
Term
Transactions of a company that include the purchase and sale of long-term productive assets are referred to as:
Definition
Investing activities.
Term
Limited liability means:
Definition
Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket.
Term
The costs of providing goods and services to customers are referred to as:
Definition
Expenses
Term
The accounts which represent the resources of the company are called:
Definition
Assets
Term
The owners' interest in a corporation is called:
Definition
Stockholders equity
Term
The costs associated with producing revenues are referred to as:
Definition
Expenses
Term
The financial statement that represents activity over the entire life of the company is the:
Definition
Balance sheet.
Term
Which of the following is the correct order for preparing the financial statements?
Definition
Income statement, statement of stockholders' equity, and balance sheet.
Term
The financial statement(s) that record activity over an interval of time is (are)
Definition
Income statement and statement of cash flows.
Term
Which of the following items would not appear in an income statement?
Definition
Cash
Term
Which of the following statements regarding financial reports is not correct?
Definition
A statement of stockholders' equity reports revenues, net income, and dividends information.
Term
Retained earnings at the end of the year is calculated using:
Definition
Beginning retained earnings, net income, and dividends.
Term
The financial statement that represents the accounting equation is the:
Definition
Balance sheet.
Term
Which of the following items is reported in the statement of stockholders' equity?
Definition
Net Income
Term
Net income appears in which two financial statements? Income statement and statement of stockholders' equity.
Definition
Income statement and statement of stockholders'equity
Term
The independent, private-sector group that is primarily responsible for setting financial reporting standards in the United States is the:
Definition
FASB.
Term
Which statement below best describes the objectives of financial accounting?
Definition
A. Provide information that helps predict cash flows.
B. Provide information about the economic resources, claims to resources and changes in resources and claims.
C. Provide information that is useful in making decisions.
D. All of the above are correct.
Term
An accounting form that is used to record the increases and decreases in each financial statement item.
Definition
Account
Term
Assets used up or services consumed in the process of generating revenues.
Definition
Expenses
Term
A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.
Definition
Limited Liability Co
Term
Items such as supplies that will be used in the business in the future, and are assets.
Definition
Prepaid Expenses
Term
The liability created by receiving revenue in advance.
Definition
unearned revenue
Term
Expenses that have been incurred but not recorded in the accounts
Definition
accrued expenses
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