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

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{Auditing} 46. Name the title of financial statement, which is audited to recognize total contribution of the shareholders in the company. a. Statement of financial performance b. None of the options c. Statement of flow of cash d. Statement of Owner’s equity
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
{Auditing} 36. Recognize the title of financial statement which is audited to know the total contribution of the shareholders in the company? a. Statement of financial performance b. Notes to Account c. Statement of Owner’s equity d. Statement of financial position
Activity: Explain and differentiate the different branches of accounting. Financial accounting - Managerial accounting - Cost Accounting - Auditing - Tax Accounting - Fiduciary accounting - Project Accounting - Forensic Accounting - Fund Accounting - Government Accounting - Political Campaign Accounting - International Accounting - 2. Describe the nature of accounting 3. Explain the accounting process: recording classifying summarizing interpreting 4. Differentiate the four forms of business organizations: Sole proprietorship General Partnership Limited liability Company Corporations 5. Explain and describe the type of information needed by each of these users: Revenue expenses profitability debt 6. Explain each accounting principles Accrual principle Conservatism principle Consistency principle Cost principle Economic entity principle Full disclosure principle Going concern principle Matching principle Materiality principle Monetary unit principle Reliability principle…
A set of financial statements:a. Is intended to assist users in evaluating the fi nancialposition, profi tability, and future prospects of an entity.b. Is intended to substitute for fi ling income tax returns tothe Internal Revenue Service in determining the amountof income taxes owed by a business organization.c. Includes notes disclosing information necessary for theproper interpretation of the statements.d. Is intended to assist investors and creditors in makingdecisions involving the allocation of economic resources.
The following statement suits best the definition of INCOME: a. Income is the amount spent by the business for recruiting the most qualified staff O b. Income is obligation contracted by the business to be honoured at specific dates O c. Income is sales revenue and other amounts received by the business through rendering services to third parties O d. Income is the amount received by the business when it issues new shares to the public
Hi please assist
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
I need help completing Next Matching
Client Name: The Boeing Company Entity and Environment Category: Objectives, Strategies, and Business Risks Year ended: Completed by: Reviewed by: Business Risk Factor Response Possible Effect(s) on the Audit Does the entity set entitywide objectives and are they supported by strategic plans? Does the entity have clear objectives in terms of a budget, profit, and other financial and operating goals? Does the entity have an entity risk assessment process that includes estimating the significance of the risks, assessing the likelihood of their occurring, and determining the actions needed to respond to the risks?
Question: Define and discuss each of the following by providing at least 2 practical examples: Limited Partnership; Limited Liability partnership; Professional corporation? A friend asked you to reveal important financial information of the company, being a finance manager of the company what would you do? Justify by considering ethics in finance. Describe mechanisms that motivate managers to act in stockholders’ best interests, and to overcome agency problem?
Options are: General Accounting principle Revenue recongnition principle Full disclosure principle Buisnmess entity assumption Going concern assumption