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ACC 100 Study Guide - Final Guide: Financial Statement, Accounting Equation

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lavendermole636
10 Apr 2016
School
Ryerson University
Department
Accounting
Course
ACC 100
Professor
Else Grech

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Document Summary

In order to manage your business you need to use inancial informaion to make decisions. When the informaion is not in a form that allows you to quickly evaluate your past aciviies it is diicult to make decisions about the future. Using the expanded accouning equaion gives you more informaion than the basic accouning equaion; however, there is not enough informaion to help you make the decisions you need to make about future operaions. The accouning system should provide informaion that is useful for decision making. Even with the expanded accouning equaion, there is sill not enough informaion for decision making purposes. For instance, you can"t determine if there is enough cash to repay the loan from your parents without manual calculaions. A good accouning system subdivides the inancial reporing elements so that more detailed informaion is readily available.

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Related Questions

Managerial accounting focuses on the generation of information for use by management in both making decisions and establishing control. The internal accounting system is generally designed to serve both purposes, but this gives rise to a trade-off in the system. One system that is designed to perform two functions cannot do so as well as a system designed to serve just one function. What tends to happen is that the ability to provide information useful for decision-making is partially sacrificed to provide better control or vice versa.

Write a brief [2-3 page] paper stating whether internal accounting systems should be focused on both decision-making and control, or just one, or on neither - and in that case, indicate what you think should be the focus of internal accounting systems.

QUESTION 1 The knowledge of financial accounting can assist people with decisions such as whether to extend credit to a business. True False 0.2 points Saved QUESTION 2 Employees of a company would not have a reason to use the information provided by financial accounting. True False 0.2 points Saved

QUESTION 3 Financial accounting should be used for assessing the financial health of large organizations only. True False 0.2 points Saved

QUESTION 4 Financial accounting can be helpful for a job candidate who is assessing the financial future of a potential employer. True False 0.2 points Saved QUESTION 5 Lenders might use the information produced by financial accounting when making loan decisions. True False 0.2 points Saved

QUESTION 6 Credit analysts prefer not to use information provided by financial accounting, as it is not accurate. True False 0.2 points Saved

QUESTION 7 Financial accounting is helpful to investment advisors. True False 0.2 points Saved

QUESTION 8 Financial accounting is more useful than managerial accounting. True False 0.2 points Saved

QUESTION 9 The decision to buy or rent equipment is an example of a decision aided by managerial accounting. True False 0.2 points Saved

QUESTION 10 Which of the following statements is true of financial accounting? A. It is used by external parties to make investment decisions. B. It is used to make lease or purchase decisions. C. Managerial accounting is another name for financial accounting, D. It is primarily used to make internal decisions of a business. E. The effectiveness of advertising can be judged using financial accounting. 0.2 points Saved QUESTION 11 The charge for using money over time, often associated with long-term loans, is known as: A. interest. B. principal. C. distribution charge. D. cash dividend. E. preferred dividend. 0.2 points Saved QUESTION 12 Which of the following is a common feature of financial and managerial accounting? A. Both have same objectives B. Both are prepared according to U.S. GAAP C. Both are reported at year end in the annual report D. Both are analyzed by external users while making investment decisions E. Both are used by the management in making decisions 0.2 points Saved

QUESTION 13 Dividends are required to be paid to stockholders on an annual basis. True False 0.2 points Saved

QUESTION 14 An individual who owns one or more shares of stock in a corporation is an owner of that corporation. True False 0.2 points Saved

QUESTION 15 Corporations do not exist as separate legal entities apart from their owners. True False 0.2 points Save Answer

QUESTION 16 It is very difficult to buy or sell ownership shares of a corporation in a stock exchange. True False 0.2 points Saved

QUESTION 17 Stock markets match up investors who wish to buy shares with those who wish to sell them. True False 0.2 points Saved

QUESTION 18 Legal process by which owners of an organization apply to a state government to have it identified as an entity legally separate from its owners is called: A. stocking. B. filling. C. attributing. D. registration. E. incorporation. 0.2 points Saved

QUESTION 19 An advantage of ownership in a sole proprietorship over ownership in a corporation is: A. tax benefits. B. having a board of directors. C. the ability to raise capital through issuance of stock. D. separation of owner and business as legal entities. E. limited liability for debts. 0.2 points Saved

QUESTION 20 Who hires the management of a corporation? A. Stockholders B. Board of directors C. Creditors D. Government E. SEC 0.2 points Saved QUESTION 21 Inventory refers to the: A. excess amount paid for an asset over its fair value. B. intangible assets of a business. C. merchandise bought or manufactured for the purpose of selling. D. amount of net income reinvested by company for future operations. E. revenue generated from investment. 0.2 points Saved QUESTION 22 Investors use financial information to predict whether a: A. company will recruit more employees. B. company's stock price will increase C. company has invested in buildings. D. company will pay salaries. E. company's bond price will increase. 0.2 points Saved

QUESTION 23 Financial accounting can be compared to a portrait. True False 0.2 points Saved

QUESTION 24 Financial statements provide the form and structure for the conveyance of financial information that will create a likeness of the reporting organization. True False 0.2 points Saved

QUESTION 25 The information reported in financial statements must be exact for an investor to make any decision. True False 0.2 points Saved

"Financial Analyst Skills"Please respond to the following:

Based on the informationpresented in the e-Activity, recommend the skills that are requiredto be a successful Financial Analyst, indicating how the role of aFinancial Analyst adds value to a company. Provide support for youranswer.

Assess the key ratios usedby Financial Analyst to evaluate the financial performance ofcompany, indicating the ratio that you believe to be mostindicative of future performance. Providesupport for your rationale.

"Financial Analysis"Please respond to the following:

Determine three key ratiosthat should be used when evaluating the financial performance of acompany, indicating what information this will reveal to an analystand the impact to decisions made about the company.

Given that financialanalysis is reactive based on events that have already occurred,suggest how financial analysis may obtain information to beproactive to the decision-making process. Provide support for yourrationale.