accounting

Question 1

accounting cycle

Answer 1

analyse source documents, record transactions, transfer journal entries to the ledger, take a trial balance, prepare financial statements, analyze financial statements

Question 2

trial balance

Answer 2

summary of all financial data in account ledgers. makes sures figures are correct

Question 3

financial statement

Answer 3

summary of all financial transactions that occur over a particular period

Question 4

balance sheet

Answer 4

assets and liabilies are equal. report firms financial condition on a specific date

Question 5

income statement

Answer 5

how much you made in a year. revenues, cost of goods, expenses

Question 6

statement of cash flow

Answer 6

money going in and out

Question 7

owners equity

Answer 7

the value of what stockholders own in a firm

Question 8

accounts recievable

Answer 8

what money is owed to a firm. what they expect to recieve in a year

Question 9

accounts payable

Answer 9

the debt liabilities bills the company owns and needs to pay back

Question 10

notes payable

Answer 10

loans liabilitie short or long term

Question 11

bonds payable

Answer 11

long term bondholders

Question 12

equity

Answer 12

assets- liabilities

Question 13

net income/loss

Answer 13

resources left over or fepleted

Question 14

gross sales

Answer 14

total of all sales the firm completed

Question 15

net sales

Answer 15

gross sales minus returns, discounts, allowances

Question 16

operations

Answer 16

cash transactions to run the business

Question 17

ratio analysis

Answer 17

assessment of a firms financial condition

Question 18

liquidity ratios

Answer 18

measures companies ability to turn assets into cash to pay its short term debts
current ratio = current assets/liabilities. 2.0 or better is a safe risk

Question 19

acid test/quick ratio

Answer 19

measures the cash, stocks, or recivables of a firm compares to its current liabilities
cash _ accounts recievale + marketable securities /current liabiliites

Question 20

leverage/debt ratios

Answer 20

measures the degree to which a firm relies on borrowed funds in its operations.

Question 21

profitability/performance ratios

Answer 21

how effectiely a firms managers are using its various resources to acheive profits

Question 22

earnings per share

Answer 22

helps the firm stimulate growth

Question 23

activity ratios

Answer 23

how management is turning over inventory

Question 24

financial accounting

Answer 24

gets financial info and analysis for ppl outside of organizatoin. can it pay its bills to lenders, customers

Question 25

private accountant

Answer 25

works for a single firm, gov agency

Question 26

public accountant

Answer 26

provdes accounting services to idnivduals or businesss

Question 27

managerial accounting

Answer 27

provides info to managers inside the organization to help them in decidion making

Question 28

bottom line

Answer 28

net income and loss

Question 29

net income

Answer 29

after taxes. bottom line

Question 30

return on equity

Answer 30

net income after taxes divided by the total owners equity. indirect measure of risk that tell sus ho wmuch a firm earned for each dollar investemed by its ownesr