Financial Accounting

Statement of Stockholders' Equity – Reflects the differences between beginning and ending balances for all accounts in the stockholders equity section of the balance sheet. It replaces the Statement of Retained Earnings.
Which of the following is an example of an accrual – Interest expense incurred but not yet paid
accounts recievable – unbilled
A company's business plan
a. is developed by the company's owner before the company is started, and guides the company throughout its life, with relatively little change over time
b. is only needed by "startup" companies
c. can help the company's owner borrow money for the company
d. is developed by the company's accountant, since it only contains financial information – c. can help the company's owner borrow money for the company
Sources of financial information: – Valuing assets at historical cost
Revenue recognition rule
Conservatism
Accounting for transactions only
Non-Current Liabilities – Liabilities which will be paid over a period of time beyond the next accounting period.
E.g. mortgages, hire purchase payments and long term loans.
Book Value – Undepreciated Cost. The cost of a fixed asset less its accumulated depreciation.
If Option 1 costs $100 and Option 2 costs $80, then the differential cost is $180. – False:
If Option 1 costs $100 and Option 2 costs $80, then the differential cost is $20.
Working Capital – Current assets- current liabilities
Flair, a women's magazine, features an ad for Elvira watches. Flair, being a specific carrier within a medium category is known as a: 
Cooperative Agreement – A financial assistance mechanism used when substantial Federal programmatic involvement with the recipient during performance is anticipated.
private accounting – the field of accouting whereby accountants are employed by a business firm or a not for profit organization
Which of the following control activities is relevant when a company uses a computerized (rather than manual) accounting system?
A. Establishment of responsibility.
B. Segregation of Duties.
C. Independent internal verification.
D. All of these control activities are relevant to a computerized system. – D
Flаir, а wоmen's mаgazine, features an ad fоr Elvira watches. Flair, being a specific carrier within a medium categоry is known as a: 
year under review – Berichtsjahr
test of total debt coverage – =profit before interest and taxes/ (interest + principal payments)(1/1-income tax rate)
Financial Accounting – Accounting information and analyses prepared for people outside the organization.
Creditor – A business or individual to whom a debt is owed. One to whom debts are owed

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