Accounting > A-Level Question Paper > D196 Principles of Financial and Managerial (All)

D196 Principles of Financial and Managerial

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Accounting plays a vital role in the decision-making process. Which action is the first step in the decision-making process? - Identify the issue The money that a company needs to buy its land, pay ... its employees, and buy its supplies is called capital. What are the potential sources of capital for a business? - Investors, creditors, and retained business earnings Which primary area of accounting generates reports for internal users? - Management accounting True or False: Accountants measure and communicate the results of business activities. - True Which group uses financial information to evaluate whether a company will be able to repay a loan? - Lenders Which of the primary financial statements reports the resources, obligations, and owner's equity of a company? - Balance sheet What is the role of the IASB in regulating accounting standards? - Establish international accounting standards What group of people make up the FASB? - People from a variety of business-related backgrounds What is the role of the GASB in setting accounting standards? - The GASB is a private-sector organization that establishes accounting and financial reporting standards for U.S. state and local governments. In what way do accountants have an economic incentive to conduct themselves ethically? - The value of the information produced by accountants is related to the confidence that users have in the reliability of that information. How is it possible for an accountant to intentionally deceive financial statement users and yet still technically be in compliance with generally accepted accounting principles (GAAP)? - There is flexibility inherent in the assumptions underlying the preparation of financial statements. Your boss approaches you with a concerning letter from the IRS and asks you to explain the role of the IRS in regulating accounting standards. Based on the role of the [Show More]

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