Weygandt - Accounting Chapter1

Front 1

What is the information system that identifies, records and communicates the economic events of an organization to interested users

Back 1

Accounting

Front 2

Give the proper word which describes the resources a business owns

Back 2

Assets

Front 3

Which equation is:
Assets= Liabilities + Owner's Equity

Back 3

Basic accounting equation

Front 4

What process reduces the differences between GAAP (generally accepted accounting principles) and the IFRS (International Financial Reporting Standards)

Back 4

Convergence

Front 5

What part of accounting involves only the recording of economic events

Back 5

Bookkepping

Front 6

What type of business is organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock

Back 6

Corporation

Front 7

What accounting principle states that companies should record assets at their cost?

Back 7

Cost principle

Front 8

what is the word for withdrawing cash or other assets from an unincorporated business for the personal use of the owner

Back 8

Drawings

Front 9

What assumption requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities?

Back 9

Economic entity assumption

Front 10

Standards of conduct by which one's actions are judged as right or wrong, honest or dishonest, fair or not fair

Back 10

Ethics

Front 11

Name the equation:
Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses

Back 11

Expanded accounting equation

Front 12

What is the cost of assets consumed or services used in the process of earning revenue

Back 12

Expenses

Front 13

What accounting principle states that assets and liabilities should be reported at fair value (def: the price received to sell an asset or settle a liability)

Back 13

Fair value principle

Front 14

Give the word that represents the following:
Numbers and descriptions match what really existed or happened - it is factual

Back 14

Faithful Representation

Front 15

What field of accounting provides economic and financial information for investors, creditors, and other external users?

Back 15

Financial Accounting

Front 16

What private organization establishes generally accepted accounting principles (GAAP)

Back 16

Financial Accounting Standards Board (FASB)

Front 17

Give name:
Common standards that indicate how to report economic events.

Back 17

Generally accepted accounting principles (GAAP)

Front 18

What financial statement presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time

Back 18

Income Statement

Front 19

Name the accounting standard-setting body that issues standards adopted by many countries outside the United States

Back 19

International Accounting Standards Board (IASB)

Front 20

What are the assets an owner puts into the business?

Back 20

Investments by owner

Front 21

What are creditors' claims on total assets?

Back 21

Liabilities

Front 22

What field of accounting provides internal reports to help users make decisions about their companies?

Back 22

Managerial accounting

Front 23

What assumption states that companies include in the accounting records only transaction data that can be expressed in terms of money?

Back 23

Monetary unit assumption

Front 24

When revenues exceed expenses you have what?

Back 24

Net income

Front 25

When expenses exceed revenues you have what?

Back 25

Net loss

Front 26

what is an owner's claim on total assets?

Back 26

Owner's equity

Front 27

What type of financial statement summarizes the changes in owner's equity for a specific period of time

Back 27

Owner's equity statement

Front 28

What type of business is owned by two or more persons associated as partners

Back 28

Partnership

Front 29

What is a business owned by one person called?

Back 29

Proprietorship

Front 30

What word describes financial information that is capable of making a difference in a decision?

Back 30

Relevance

Front 31

What is the gross increase in owner's equity resulting form business activities entered into for the purpose of earning income?

Back 31

Revenues

Front 32

What law passed by Congress in 2002 intended to reduce unethical corporate behavior?

Back 32

Sarbanes-Oxley Act of 2002 (SOX)

Front 33

What governmental agency oversees U.S. financial markets and accounting standard-setting bodies?

Back 33

Securities and Exchange Commission (SEC)

Front 34

What financial statement summarizes information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time?

Back 34

Statement of cash flows

Front 35

What economic events of a business are recorded by accountants?

Back 35

Transactions

Front 36

What is the examination of financial statements by a certified public accountant in order to express an opinion as to the fairness of presentation?

Back 36

Auditing

Front 37

What area of accounting uses accounting, auditing and investigative skills to conduct investigations into theft and fraud?

Back 37

Forensic accounting

Front 38

What are of public accounting ranges from development of accounting and computer systems to support services for marketing projects and merger and acquisition activities

Back 38

Management accounting

Front 39

What area of accounting within a company involves such activities as cost accounting, budgeting design and support of accounting information systems and tax planning and preparation?

Back 39

Private accounting

Front 40

What area of accounting offers expert service to the general public?

Back 40

Public accounting

Front 41

What area of public accounting involves tax advice, tax planning, preparing tax returns and represents clients before gov't agencies?

Back 41

Taxation