ACCT 2010 (chapter 1)
provides the most important support for the ethical foundation of accounting
Accountants' ethical contract & Legislation
The private sector organization that is currently responsible for setting accounting standard in the US is the ...
Financial Accounting Standards Board (FASB)
independence, full-time card members, private sector organization
Financial Accounting Standards Board (FASB)
standards for presenting financial accounting information
Generally Accepted Accounting Principles (GAAP)
common abbreviation for the Board that currently establishes global accounting and reporting standards
IASB
organization that develops global accounting standards
International Accounting Standards Board (IASB)
regulates auditors & provides criminal penalties for violators
Sarbanes-Oxley Act
The legal authority to set accounting standards lies with the ...
Securities and Exchange Commission
economic resource that will provide it with future benefits
asset
ex. cash, inventory, supplies, buildings, equipment, accounts receivable, other assets
asset
adds creditability to a company's financial statements by expressing a professional opinion
auditors
If investors or lenders were interested in the amount of debt a company currently has, which financial statement would they need?
balance sheet
assets, liabilities, and stockholder's equity
balance sheet
decide market share and profitability
competitors
has responsibility for preparing financial statements in accordance with generally accepted accounting principles
corporate management
The balance sheet shows that a company's resource equal ______ claims to those resources.
creditor's claims plus owners' claims
decide whether to lend money
creditors
decide whether to purchase products
customer
decide employment opportunities
employees
refers to a code or moral system that provides criteria for evaluating right or wrong
ethics
ex. rent expense, supplies expense, salaries expense, utilities expense, interest expense, other expenses
expense
Salaries paid to employees for the month is a(n) ______ account that appears on the ______.
expense; income statement
A(n) ______ is a cost of doing business that is necessary to produce ______.
expense; revenue
______ accounting information helps investors make decisions.
financial
Companies communicate information about their business activities primarily through ...
financial statements
when accountants face an ethical dilemma, the first step in solving a dilemma is to ...
identify the ethical decision
The financial income statement that is most useful in explaining a company's stock price performance is the ...
income statement
best explains a companies' stock price performance
income statement
revenues and expenses
income statement
salaries expense, service expense, supplies expense
income statement
decide whether to invest stock
investors
ex. accounts payable, salaries payable, utilities payable, interest payable, notes payable, other liabilities
liabilities
assets=
liabilities + stockholders' equity
decide on environmental issues
local communities
Who has the responsibility to apply standards when communicating with investors and creditors?
management
______ accounting deals with the concepts and methods used to provide information to an organization's internal users.
managerial
decide production and expansion
managers
The primary functions of accounting are to ...
measure a company's activities & communicate information to decision makers
The two main career paths in accounting are referred to as:
private and public
An advantage of the corporate form of organization is that a corporation ...
provides limited liability to stockholders
decide on social welfare
regulators
ex. service revenue
revenue
operating, investing, and financing activities
statement of cash flows
ex. common stock, retained earnings
stockholders' equity
decide the customer's ability to pay for supplies
suppliers
decide on taxation policies
tax authorities
purpose of the author
to add creditability to the financial statements
