HCAD 760 MIDTERM questions with correct answers

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TESTED AND CONFIRMED A+ ANSWERS involves identifying, recording, and communicating the operational results and status of organization (as opposed to a subunit) - Financial accounting A financial co... nveys a business's financial accounting information - statement The four most important financial statements are......1. Income statement 2. Statement of changes in equity 3. Balance sheet 4. Statement of cash flows The requirement to provide financial accounting information is driven by the need of to have reliable information regarding the financial status of an organization - outsiders The information presented in financial statements is as important to as it is to outsiders - managers (T/F) Financial accounting can reveal to managers an organizations performance in comparison to past performance (i.e. benchmarking). - True presents a consistent audited view of an organization's financial position and is easily compared to similar organizations - Financial accounting (T/F) Not-for-profit organizations have to prepare financial statements. Explain. - True. Reports are in the form of a 990. (T/F) The preparation and presentation of financial accounting data should not be regulated - False. It should because it is important to have financial reporting that is accurate and based on reliable data A federal agency that has the legal authority to regulate the form and content of financial statements - Securities and Exchange Commission (SEC) SEC relies on the following organizations for implementation: - Financial Accounting Standards Board (FASB) Industry Committees of the American Institute of Certified Public Accountants (AICPA) Principles and Practices Board of the Healthcare Financial Management Association (HFMA) [Show More]

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