Financial Accounting Study Guide Questions And Correct Answers

Outstanding Shares {Ans: Refers to the total number of shares of stock that are owned by stockholders on any particular date.}Stock Dividend {Ans: Is a distribution od additional shares of a corporation's own stock.}Merger {Ans: Occurs when one company purchase all of the assets and liabilities of another and the acquired company goes out of existence.}Accounting {Ans: System that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers.}Accrued Liabilities {Ans: Are expenses that have been incurred but have not been paid at the end of the accounting period.}Bonds Payable {Ans: Are both stocks and bonds issued by corporations to raise money for long-term purposes.}