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Question 1

Creditor

Answer 1

Any person/business to whom a business owes money.

Question 2

Certified Public ACcount

Answer 2

Licensed Professional accountants who serve the general public.

Question 3

Financial Accounting Standards Board

Answer 3

Private organization that oversees the creation and governance of US accounting standards

Question 4

Securities and Exchange Commission

Answer 4

US governmental agency that oversees the U.S. Financial markets.

Question 5

Generally Accepted Accounting Principles

Answer 5

Accounting guidelines formulated by FASB US accounting rulebook.

Question 6

Faithful Representation

Answer 6

Providing information that is complete, neutral and free from error.

Question 7

Economic Entity Assumption

Answer 7

Organization that stands apart as a separate economic unit.

Question 8

Sole Proprietorship Owners:

Answer 8

One

Question 9

Sole Proprietorship Life:

Answer 9

Owner’s Choice/Death

Question 10

Sole Prioprietorship Liability:

Answer 10

Owner is liable

Question 11

Sole Proprietorship Taxation

Answer 11

Owner Pays Tax

Question 12

Partnership Owners:

Answer 12

2 or More

Question 13

Partnership Life:

Answer 13

Partner’s choice/death

Question 14

Partnership Liability

Answer 14

Partners are liable

Question 15

Partnership Taxation

Answer 15

Partners pay tax

Question 16

Corporation Owners

Answer 16

One or More (Stockholders)

Question 17

Corporation Liability

Answer 17

Stockholders are not liable

Question 18

Corporation Taxation

Answer 18

Corporation pays tax.

Question 19

LLC Owners

Answer 19

One or more (members/partners)

Question 20

LLC Liability

Answer 20

Members are not liable

Question 21

Corporation Life

Answer 21

Indefinite

Question 22

LLC Life

Answer 22

Indefinite

Question 23

LLC Taxation

Answer 23

Members pay tax

Question 24

Structure of a Corporation

Answer 24

Stockholders -> Board of Directors -> Chairperson of the Board -> President -> Vice Presidents

Question 25

Cost Principle

Answer 25

Acquired assets and services should be recorded at their actual cost.

Question 26

Going Concern Assumption

Answer 26

Assumes entity will remain in operation for the forseeable future.

Question 27

Monetary Unit Assumption

Answer 27

Requires the items on the financial statements to be measure in terms of a monetary u nit

Question 28

International Financial Reporting Standards

Answer 28

Set of global accounting guidelines formulated by the IASB

Question 29

International Accounting Standards Board

Answer 29

Private organization that oversees the creation and governance of the IFRS

Question 30

Sarbanes-Oxley Act

Answer 30

Requires management to review internal control and take responsibility for the accuracy and completeness oftheir financial reports

Question 31

Accounting Equation

Answer 31

Assets = Liability + Equity

Question 32

Contributed Capital

Answer 32

Owner contributions to a corporation; Part of equity.

Question 33

Common Stock

Answer 33

Basic element of contributed capital; represents basic ownership of a corporation

Question 34

Retained Earnings

Answer 34

Equity earned by profitable operations of a corporation that is not distributed to stockholders.

Question 35

Dividend

Answer 35

Distribution of a corporation's earnings to stockholders

Question 36

Expanded Accounting Equation

Answer 36

Assets = Liabilities + Contributed Capital + Retained Earnings

Question 37

Corporation Ending Equity Equation

Answer 37

Beg Equity + Common Stock Issuance - Dividends + Net Income

Question 38

Transaction

Answer 38

Affects the financial position of the business and can be measured with faithful representation.

Question 39

Income Statement

Answer 39

Provides information about profitability for a particular period; Net Income = Revenue - Expenses

Question 40

Statement of Retained Earnings

Answer 40

Informs how much of the earnings were kept and reinvested in the company; Beg RE + Net Income - Dividends

Question 41

Balance Sheet

Answer 41

Economic Resouces company has and debt company owes. What is the financial position. Assets = Liabilities + Equity

Question 42

Statement of Cash Flows

Answer 42

Business' Cash Receipts and cash payments for a period; Cash Flows from Operating, Investing and Financing Activities

Question 43

Return on Assets

Answer 43

Measures how profitability a company uses its assets. Net Income/Avg. Total Assets