Accounting 1-3

Question 1

GAAP

Answer 1

generally accepted accounting principals

Question 2

IFRS

Answer 2

International Financial Reporting Standards (over 100 countries have adopted to this)

Question 3

AcSB

Answer 3

Accounting standards board

Question 4

CICA

Answer 4

Canadian Institute of Chartered Accountants

Question 5

CA

Answer 5

Chartered Accountant

Question 6

CPA

Answer 6

Chartered Professional Accountants

Question 7

CGA

Answer 7

Certified General accountants

Question 8

CMA

Answer 8

Certified Management accountants

Question 9

what are the 5 activities an accountant does?

Answer 9

1. Gathering financial information
2. Preparing and collecting permanent records
3. Rearranging, summarizing, and classifying financial information
4. Preparing information reports and summaries
5. Establishing control for honesty and accuracy

Question 10

Types of businesses?

Answer 10

1. Service business
2. Merchandising business
3. Manufacturing business
4. Non-profit business

Question 11

Forms of businesses

Answer 11

1. Sole proprietorship
2. Partnership
3. Corporations

Question 12

Categories of Accounting work

Answer 12

1. Routine daily accounting activities
2. Periodic accounting activities
3. Miscellaneous accounting activities

Question 13

Outer ring

Answer 13

1. Transactions occur
2. Transactions are recorded in Journal
3. Transactions are put into general ledger account
4. Trial balance/ Interim financial statement prepared
   (always ongoing)

Question 14

Inner ring

Answer 14

1. worksheet prepared
2. Former Financial Statements Prepared
3. Ledger is adjusted and closed
4. Post closing trial balance prepared
   (repeats every fiscal period)

Question 15

What is the accounting cycle

Answer 15

A reoccurring cycle that is carried out every fiscal period

Question 16

Creditor

Answer 16

Someone you owe

Question 17

Fundamental accounting equation

Answer 17

A= L+E

Question 18

Debtor

Answer 18

Someone owes you

Question 19

what did CICA do?

Answer 19

publish the handbook
created the CPA
designates the CA position

Question 20

order of liquidity

Answer 20

1. Cash
2. A/R
3. Supplies
4. Land
5. Building
6. Equipment + Furniture
7. Trucks

Question 21

The business entity concept

Answer 21

the business and the owner are separate entities

Question 22

The cost principle

Answer 22

information should be reported at the purchased rate

Question 23

the continuing concept

Answer 23

The business and the cost principle will continue to run unless said so

Question 24

The revaluation model

Answer 24

if a private business chooses to use IFRS, they may change their assets to the market value

Question 25

The objectivity principle

Answer 25

records must have visible evidence that they are accurate

Question 26

Source document

Answer 26

the best form of evidence

Question 27

what happens to a source document after it is recorded

Answer 27

it is kept on file for reference or evidence

Question 28

business transaction

Answer 28

a financial event that causes a change in financial position

Question 29

Classified balance sheet

Answer 29

used to gain more insight on a balance sheet (used by ASPE)

Question 30

Statement of financial position

Answer 30

same as Classified balance sheet but is only used if a private enterprise decides to choose IFRS

Question 31

4 steps to analyzing transactions

Answer 31

1. Determine which accounts are being affected and make the change 2. Check to see if the owner's equity has changed 3. Make sure two accounts are affected 4. Make sure the equation balances

Question 32

Financial position

Answer 32

a status of a business based on assets, liabilities, and equity

Question 33

what is A2

Answer 33

a cell

Question 34

what is =B10+c17

Answer 34

a formula

Question 35

what is =sum(b10:b14)

Answer 35

a function

Question 36

Accounting clerk

Answer 36

usually called a bookkeeper. Associates with the routine activities. (e.g. transactions, payroll, banking, balancing the ledger)

Question 37

Accountant

Answer 37

more broader skillset, requires higher education. (e.g. prepares reports, interprets data, makes business decision)

Question 38

father of accounting?

Answer 38

Luca Pacioli

Question 39

What is Auditing

Answer 39

testing a firm's records and procedures for accuracy

Question 40

whats the difference between Public accountants and professional accountants

Answer 40

public serves the public for a fee

Question 41

A professional accountant may choose?

Answer 41

Management or Institutional

Question 42

What is a management accounting

Answer 42

working for a large company (e.g. Mcdonalds, Bell)

Question 43

What is Institutional accounting

Answer 43

working for governments, banks, universities

Question 44

ASPE

Answer 44

Accounting standards for Private Enterprises (preferred over IFRS in private enterprises)

Question 45

IASB

Answer 45

International accounting standards board

Question 46

What did the IASB do

Answer 46

helped develop and approve of the IFRS

Question 47

what is the AcSB

Answer 47

The CICA committee combined to form a separate government body called the Accounting Standards Board (AcSB). They do their actions independently after consulting with likeminded boards such as the IASB