WGU C213 Accounting for Decision Makers With 100% Verified Questions and All Correct Answers be Sure to Score an A+
(revenues-expense= net income) - Answers Equation to calculate net income
- Rapid Advancements in the IT field
- the international integration of worldwide business
- Increased scrutiny associated with large corporate accounting scandals - Answers Which 3
factors have combined to make right now a time of significant change in accounting?
- Summary of accounting policy
- Additional info about summary totals
- Disclosure of info not included in summary
- Supplemental disclosure required by FASB or SEC - Answers What are the 4 general types of
accounting notes?
1) to predict a company's future profitability and cash flows 2) to identify and improve potential problem areas - Answers What are the two main purposes of financial statement analysis?
- years, Comparative side-by-side format - Answers How many years worth of balance sheets
does a company usually provide and how are they typically formatted?
Accounting - Answers the recording of the day-to-day financial activities of a company and the organization of that information into summary reports used to evaluate the company's financial status
Accounting information - Answers Info that is intended to be useful in making decisions about the future.
accounting system - Answers used by a business to handle routine bookkeeping tasks and to structure the information so it can be used to evaluate the performance and financial status of the business
American Institute of Certified Public Accountants (AICPA) - Answers the professional organization of certified public accountants (CPAs) in the United States
Articulation - Answers the idea that the three primary financial statements are interrelated
Asset Mix - Answers the proportion of total assets in each asset category that is largely determined by the industry in which the company operates
Asset Turnover 1 / 2
Sales/ Total Assets - Answers Number of dollars of sales during the year generated by each dollar of assets
Asset turnover is computed as sales divided by assets and is interpreted as the number of dollars in sales generated by each dollar of assets - Answers In terms of ROE, define efficiency.
Assets - Answers probable future economic benefits obtained or controlled by a company as a result of past transactions or events
Assets = Liabilities + Owners' Equity - Answers What is the accounting equation?
Assets-to-equity ratio is computed as assets divided by equity and is interpreted as the number of dollars of assets a company is able to acquire using each dollar invested by stockholders - Answers In terms of ROE, define leverage.
Balance Sheet - Answers Reports a company's assets, liabilities, and owners' equity
Balance Sheet - Answers reports a company's financial position at a specified point in time and lists the company's resources (assets), obligations (liabilities), and net ownership interest (owners' equity).
Bookkeeping - Answers the preservation of a systematic, quantitative record of an activity
By order of liquidity - Answers In what order are assets typically listed on the balance sheet?
Cash - Answers What is the first item that is usually listed on a U.S. balance sheet?
cash, accounts receivable, and inventory - Answers What are the most common current assets?
Common stockholders are the true owners of a business; Preferred stockholders give up some of the rights of ownership enjoyed by common stockholders in exchange for some of the safety promised to creditors - Answers What is the difference between a common stockholder and a preferred stockholder?
companies report the intangibles that they have purchased from other companies but not the intangibles that they have developed themselves - Answers Which intangible assets are reported on the balance sheet?
Comprehensive Income - Answers net income plus or minus adjustments for changes in company wealth stemming from changes in certain exchange rates, interest rates, or financial instruments' values
Conservatism - Answers the practice of recognizing all losses but not recognizing gains until they are certain
- / 2