WGU MBA First Half of Exams

WGU MBA First Half of Exams Leave the first rating Terms in this set (1295) Save Accountingthe recording of the day-to-day financial activities of a company and the organization of that information into summary reports used to evaluate the company's financial status Bookkeepingthe preservation of a systematic, quantitative record of an activity accounting systemused by a business to handle routine bookkeeping tasks and to structure the information so it can be used to evaluate the performance and financial status of the business Accounting informationInfo that is intended to be useful in making decisions about the future.The balance sheet, the income statement, and the statement of cashflows What are the three primary financial statements?External UsersWho is financial accounting information primarily prepared for and used by?

Managerial Accountingthe name given to accounting systems designed for internal users Balance SheetReports a company's assets, liabilities, and owners' equity Income Statementreports the amount of net income earned by a company during a period Net incomethe excess of a company's revenues over its expenses statement of cash flowsreports the amount of cash collected and paid out by a company in the following three types of

activities: operating, investing, and financing

FASBWhich private body establishes accounting rules in the U.S.?Financial Accounting Standards Board (FASB) a private body established and supported by the joint efforts of the U.S. business community, financial analysts, and practicing accountants The Securities and Exchange Commission (SEC) the organization that regulates U.S. stock exchanges and seeks to create a fair information environment in which investors can buy and sell stocks without fear that companies are hiding or manipulating financial data American Institute of Certified Public Accountants (AICPA) the professional organization of certified public accountants (CPAs) in the United States

Public Company Accounting Oversight Board (PCAOB) the organization that inspects the audit practices of registered audit firms and has statutory authority to investigate questionable audit practices and to impose sanctions such as barring an audit firm from auditing SEC-registered companies Internal Revenue Service (IRS) Gov't agency that establishes rules to define exactly when income should be taxed. It has no role in setting financial accounting rules; and a company's financial statements are not used in determining how much tax the company must pay The International Accounting Standards Board (IASB) Organization that was formed to develop a common set of worldwide accounting standards.Its standards are increasingly accepted worldwide, but FASB rules are still the standard in the United States.

• Rapid Advancements in the IT field
• the international integration of

worldwide business

• Increased scrutiny associated with

large corporate accounting scandals Which 3 factors have combined to make right now a time of significant change in accounting?Sarbanes-Oxley ActA wave of accounting scandals starting in 2001 resulted in this act, which increases U.S. federal government scrutiny of the production of financial statements.Balance Sheetreports a company's financial position at a specified point in time and lists the company's resources (assets), obligations (liabilities), and net ownership interest (owners' equity).

Assetsprobable future economic benefits obtained or controlled by a company as a result of past transactions or events Liabilitiesprobable future sacrifices of economic benefits arising from present obligations of a company to transfer assets or provide services in the future as a result of past transactions or events Owners' equitythe residual interest in the assets of a company that remains after deducting its liabilities Assets = Liabilities + Owners' Equity What is the accounting equation?By order of liquidityIn what order are assets typically listed on the balance sheet?Current and Long-termLiabilities are divided into which 2 categories on the balance sheet?states that the financial results of an economic entity should be reported separately from the financial results of other entities, even though all those entities may be controlled by the same person What is the entity concept?(revenues-expense= net income) Equation to calculate net income When work has been done and collectability of cash can be reasonably assured According to accounting rules, when should revenue be recognized?