Financial Accounting: Introductory Section

Topics: Balance sheet, Generally Accepted Accounting Principles, Financial statements Pages: 37 (12952 words) Published: October 24, 2012
Financial Accounting: Introductory Section Pretest Introduction Welcome to the pre-assessment test for the Financial Accounting Online Course: Introductory Section. This test will allow you to assess your knowledge of basic and advanced financial accounting. All questions must be answered for your exam to be scored.

To advance from one question to the next, select one of the answer choices or, if applicable, complete with your own choice and click the “Submit” button. After submitting your answer, you will not be able to change it, so make sure you are satisfied with your selection before you submit each answer. You may also skip a question by pressing the forward advance arrow. Please note that you can return to “skipped” questions using the “Jump to unanswered question” selection menu or the navigational arrows at any time. Although you can skip a question, you must navigate back to it and answer it - all questions must be answered for the exam to be scored. Your results will be displayed immediately upon completion of the exam. After completion, you can review your answers at any time by returning to the exam. Good Luck! Welcome to Financial Accounting

You are about to begin an interactive experience that will introduce you to financial accounting, the language of business. Successful completion of this course will enable you to understand how accounting systems are used to record the day-to- day economic activities of a business and to generate reports about its financial health and performance. Using the Tutorial

The structure of the HBS Financial Accounting Tutorial and its navigational tools are easy to master. If you're reading this text, you must have clicked on the navigation item labeled "Using the Tutorial" on the left. Please click on the Help icon in the upper right corner of the tutorial to view a clickable animation on how to use this tutorial. The Setting

This HBS Financial Accounting Tutorial uses a business context to help you learn the fundamentals of financial accounting. You are setting up a store called Global Grocer. It will carry gourmet foods and condiments, unusual spices and specialty kitchen implements from all over the world. Global Grocer is a franchise business - it will pay a franchising company, Global Grocer International, a franchise fee for the use of the name and for marketing support. You are planning to have a grand store opening in early September, with a big sale on items related to various fall and harvest celebrations around the world. You have a limited amount of cash available to start up the business, but you hope to obtain bank loans and also raise capital from outside investors. You will be keeping the accounts (or bookkeeping) for the Global Grocer store. Completing this tutorial will prepare you for that role. The Accounting Process

This tutorial is based on a model of the accounting process in a small business. Financial accounting is a financial information system that tracks and records an organization's business transactions and aggregates them into reports for decision makers both inside and outside the business. A transaction is an event that has consequences for a business' financial condition. The event could be either external or internal to the business.

(1) In the running of a business, various decisions are made and implemented as business transactions. For example, in a typical business, managers will raise capital from investors and banks, rent or buy equipment, and purchase and sell merchandise and services. Each business transaction is related to one of three types of activities: operating, investing and financing activities. (2) Even the most simple organizations have numerous business transactions that have to be tracked and recorded. Transactions are formally recorded in a database called a journal, and then organized by accounts into a ledger. (3) Report preparation requires the aggregation of accounting transactions into statements...
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