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WGU D196- Principles of Financial and Managerial Accounting Exam Review 2023
1.bookkeeping: day to day keeping of transcations
2.steps of decision making: identify
issue gather information identify alternatives select option that most likely results in desired objective
3.accounting: analysis of events
record and report financial effects of business activities
4.where does capital come from (3):
investors creditors(lenders) business itself (from earnings retained)
5.2 main types of accounting: financial and managerial
6.managerial accounting: gather and analysis of information for internal
use and decision making. 1 / 3
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7.financial accounting: gather, report, analysis of information for
external users- investors and creditors. summary of a business
8.what does managerial accounting review: product cost, breakeven
analysis, budgeting, performance analysis, outsource production
9.what does financial accounting review: credit analysis, financial
health, esti- mate value of the company
10.examples of external financial reports for financial accounting: annual
report, financial statement, balance sheet, income statement, statement of cash flow
11.balance sheet: reports assets and liabilities.
basic. list as of a point in time. as of today, as of yesterday
12.income statement: how much did you
,ake period of time - from nov to jan 2 / 3
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13.statement of cash flow: where did the cash come from and where
did the cash go period of time - from nov to jan
14.lender: lends money with intend to get it back plus interest.
need current income, existing obligations, existing assets, payroll stub, tax return, monthly payments, bank stmts
15.investor: buys into your company. looks at if the business is
profitable, what they are buying, buying obligations, potential future projections
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