FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Textbook Question
Chapter 1, Problem 1.1E
Here is a list of words or phi uses discussed in this chapter:
- 1. Corporation
- 2. Creditor
- 3.
Accounts receivable - 4.
Partnership - 5. Stockholder
- 6. Common stock
- 7. Accounts payable
- 8. Auditor’s opinion
Instructions
Match each word or phrase with the best description of it.
_______ (a) An expression about whether financial statements conform with generally accepted accounting principles.
_______ (b) A business that raises money by issuing shares of stock.
_______ (c) The portion of stockholders’ equity that results from receiving cash from investors.
_______ (d) Obligations to suppliers of goods.
_______ (e) Amounts due from customers.
_______ (f) A party to whom a business owes money.
_______ (g) A party that invests in common stock.
_______ (h) A business that is owned jointly by two or more individuals but does not issue stock.
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Students have asked these similar questions
Each question has one possible correct answer.
Group the accounting terms according to their explanation
1. Accounting
2. Financial accounting
3.Accounting standards
4. Stock-taking
5. Auditor
6. Management accounting
a person who, according to the law, has the right to audit the company's annual report
collection of compilation and processing of economic information
economic assets, registration in inventory lists with accounting data, as well as reconciliation of claims and liability amounts with debtors and creditors
a part of the company's accounting, the main purpose of which is the collection, analysis, preparation and presentation of financial and operational information necessary for the management of the company
defines and explains basic accounting principles and requirements
a component of company accounting whose main task is the preparation of financial statements for the company's board, management and other users of financial statements.
Financial accounting prepares the general purpose statements profit and loss account and balance sheet, select the people who are the main users of these statements of an entity?
a.
People those who are working in that entity
b.
All of these
c.
People those who provided loan to that entity
d.
People those who purchased the shares of that entity
Enter the letter A through H for the principle or assumption in the blank space next to each numbered description that it best reflects. A. General accounting principle B. Measurement (cost) principle C. Business entity assumption D. Revenue recognition principle E. Specific accounting principle F. Expense recognition (matching) principle G. Going-concern assumption H. Full disclosure principle 1. A company reports details behind financial statements that would impact users’ decisions. 2. Financial statements reflect the assumption that the business continues operating. 3. A company records the expenses incurred to generate the revenues reported. 4. Concepts, assumptions, and guidelines for preparing financial statements. 5. Each business is accounted for separately from its owner or owners. 6. Revenue is recorded when products and services are delivered. 7. Detailed rules used in reporting events and transactions. 8. Information is based on actual costs incurred in transactions.
Chapter 1 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - What are the three main types of business...Ch. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - What are the three main categories of the...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Which of these items are liabilities of White...Ch. 1 - How are each of the following financial statements...Ch. 1 - What is the purpose of the management discussion...Ch. 1 - Prob. 19QCh. 1 - Prob. 20QCh. 1 - Prob. 21QCh. 1 - Prob. 1.1BECh. 1 - Match each of the following types of evaluation...Ch. 1 - Indicate in which part of the statement of cash...Ch. 1 - Prob. 1.4BECh. 1 - Prob. 1.6BECh. 1 - Indicate which statement you would examine to find...Ch. 1 - Prob. 1.8BECh. 1 - Prob. 1.9BECh. 1 - Prob. 1.10BECh. 1 - Prob. 1.11BECh. 1 - Prob. 1.1DIECh. 1 - Prob. 1.2DIECh. 1 - Prob. 1.3bDIECh. 1 - Here is a list of words or phi uses discussed in...Ch. 1 - Prob. 1.4ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.12ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.21ECh. 1 - Prob. 1.1APCh. 1 - Financial decisions often place heavier emphasis...Ch. 1 - INTERPRETING FINANCIAL STATEMENTS Xerox was not...Ch. 1 - Prob. 1.5EYCTCh. 1 - Prob. 1.9EYCTCh. 1 - Prob. 1.10EYCTCh. 1 - Prob. 1.1IPCh. 1 - Prob. 1.2IPCh. 1 - Prob. 1.3IP
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- What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?arrow_forwardWhich of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principlearrow_forwardThe metrics based on financial numbers produced by the accounting system are ________. A. quantitative factors B. qualitative factors C. stakeholders D. stockholdersarrow_forward
- According to Statement of Financial Accounting Concepts No. 8, to be relevant an earnings report is expected to have which of the following?arrow_forwardList the three basic questions that must be answered when analyzing the effects of a business transaction on the accounting equation.arrow_forwardExternal users of financial accounting information include all of the following except ________. A. lenders such as bankers B. governmental agencies such as the IRS C. employees of a business D. potential investorsarrow_forward
- What is the accounting equation? List two examples of business transactions, and explain how the accounting equation would be impacted by these transactions.arrow_forwardMatch the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or monthsarrow_forwardWhich of the following accounting concepts do accountantsand auditors assess by using financial analyses?a. Time period. c. Full disclosure.b. Separate entity. d. Going-concern assumption.arrow_forward
- Statements of Financial Accounting Concepts set forth financial accounting and reporting objectives and fundamentals that will be used by the Financial Accounting Standards Board in developing stands. Concepts Statement No. 6 defines various elements of financial statements. Instructions: Answer the following questions based on SFAC No. 6: a. Define and discuss the term "equity." b. What transactions or events change owner's equity? c. Define "investments by owners" and provide examples of this type of transaction. What financial statement element other than equity is typically affected by owner investments? d. Define "distributions to owners" and provide examples of this type of transaction. What financial statement element other than equity is typically affected by distributions? e. What are examples of changes within owners' equity that do not change the total amount of owners' equity?arrow_forwardGenerally accepted accounting principles require that companies use the _____ of accounting. a.deferral basis b.account basis c.cash basis d.accrual basisarrow_forwardStatements prepared to know profit or loss and financial position of the business are called: Financial Statement Bank Reconciliation Statement Trial Balance All of the abovearrow_forward
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