Terminology Matching Continued Auditor's Report Net Income Net Loss Sarbanes-Oxley Act Partnership Sole-Proprietorship Corporation Stakeholder's Equity Current Assets A business owned by 1 person A business organized as a separate legal entity owned by stockholders Prepared by an outside independent person giving their opinion about the fairness of the organization's financial position and the organization's conformance with GAAP A business owned by 2 or more people The amount by which revenues exceed expenses Assets the organization expects to convert to cash or use up within 1 year of its operating cycle The owner's claim to assets * The amount by which expenses exceed revenues Regulations passed by Congress to reduce unethical corporate behavior

Terminology Matching Continued Auditor's Report Net Income Net Loss Sarbanes-Oxley Act Partnership Sole-Proprietorship Corporation Stakeholder's Equity Current Assets A business owned by 1 person A business organized as a separate legal entity owned by stockholders Prepared by an outside independent person giving their opinion about the fairness of the organization's financial position and the organization's conformance with GAAP A business owned by 2 or more people The amount by which revenues exceed expenses Assets the organization expects to convert to cash or use up within 1 year of its operating cycle The owner's claim to assets * The amount by which expenses exceed revenues Regulations passed by Congress to reduce unethical corporate behavior

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Industry standards for financial statement onalysis: Multiple Choice Are used to compare a company's performance to industry performance. Are based on rules of thumb. Are set by the government. Compare a company's income with its prior year's income. Are based on a single competitor's financial performance.
What is the primary purpose of Corporate Social Responsibility (CSR) reporting in accounting? a) To maximize shareholder profits b) To comply with legal regulations c) To enhance transparency and accountability d) To minimize tax liabilities
Multiple choice: 1. The business entity concept means that: A. the owner of the business entity and the business entity are treated the same from a legal and accounting B. the business entity is organized according to the rules determined by the ASC C. the business entity is organized according to the rules determined by the BOA D. the business entity is considered a separate entity apart from the owner or owners 2. Liabilities are: A. Insider claims to the business's assets B. Outsider claims to the business's assets C. Economic resources of a business D. Increases in owner's equity earned by delivering goods or services
Statement 1: Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Statement 2: Consolidated financial statements shall be prepared using uniform accounting policies for like transactions and other events in similar circumstances. Statement 3: An expense item allocated by the home office to a branch is recorded by the branch by a debit to an expense ledger account and a credit cash-home office. Statement 4: A debit to Home Office ledger account and a credit to the Trade Accounts Receivable account in the accounting records of a branch indicate that the home office collected accounts receivable of the branch. Statement 5: Under the acquisition method, if the fair values of identifiable net assets exceed the value implied by the purchase price of the acquired company, the excess should be accounted for goodwill. Statement 6: With an acquisition, direct and indirect expenses are considered a par of the total cost of…
Client Name: The Boeing Company Entity and Environment Category: Industry, Regulatory, and External Factors Year ended: 2022 Completed by: Reviewed by: Business Risk Factor Response Possible Effect(s) on the Audit What is the level of competition in the industry and does this level of competitiveness present any risks for the entity? Do technological factors present any risks for the entity? Do general economic conditions present any risks for the entity? Does the regulatory environment present any risks for the entity? Does the legal/political environment present any risks for the entity? Do accounting principles, including those that are industry-specific or determined by a regulatory authority, present any risks for the entity? Do social/environmental factors present any risks for the entity? Are there any other external factors that present a risk for the entity?
What are the qualitative characteristics of financial statements according to the Framework? Qualitative characteristics are broad classes of financial effects of transactions and other events Qualitative characteristics are the attributes that make the information provided in financial statements useful to others. Qualitative characteristics measure the extent to which an entity has complied with all relevant Standards and Interpretations. Qualitative characteristics are non-quantitative aspects of an entity’s position and performance and changes in financial position
What determines whether an event is reflected in financial statements according to accounting principledMultiple Choice The event's significance to the company's reputationThe event's complexity and potential impact on competitorsThe event's ability to be reliably measured in monetary termsThe event's inclusion in the annual report to stockholders
Match each concept with the definition that best describes it. Expense recognition principle (matching [ Choose] principle) [ Choose ] Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur. Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash. The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied. Information that accurately depicts what really happened. The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue. An assumption that accountants can divide the economic life of a business into artificial time periods. Monthly or quarterly accounting time periods. An accounting period that extends from January 1 to December 31. Revenue recognition principle Time period assumption Calendar year…
Conceptual Framework and Reporting Standard: Small and Medium Sized Enterprise 1. The PFRS for SMEs requires that entity’s financial statements should be prepared using an accrual basis of accounting. True of False? 2.The PFRS for SMEs states that the objective of financial statements is to provide information about the financial position, performance and cash flows of the entity that is useful for economic decision-making by a broad range of users who are not in a position to demand reports tailored to meet their particular information needs. True or False? 3. The PFRS for SMEs allows offsetting in assets and liabilities, or income and expenses. True or False?
A difference in reporting on the balance sheet for a for profit business and a Not-for-profit entity is that current assets and current liabilities are reported in the for-profit sector and the parallel accounts in not for profit are found in: a.Net assets b.Donations c.Deferred accounts d.Fund accounts
The following are examples of related party transactions except *a. Extending credit to officers or directors or to entities that are owned or controlled by officers or directorsb. Deposit and other transactions with directors, officers, or affiliated entitiesc. Expense allowances given to executivesd. Guarantee loans to, or the financial performance of, an affiliated entity
N4 common stockholders of a business enterprise are said to be the residual owners which mean that they a. have thr rights to specific assets of the business b. are entitled to a dividend every year in which the business earns profit c. can negotiate individual comtrscts on behalf of the enterprise d. bear the ultimate risks and uncertainties and recieve the benefits if enterprise ownership.