accounting Flashcards
Public Companies
Sell stonkz on regulated exchange
Private Companies
limited to 100 shareholders
Securities and Exchange Commission
regulates public companies
market capitalization
worth of company=stock price
Financial Accounting Standards Board
regulates private companies
capital gains
no physical labor
IRS (Internal Revenue Service)
enforce rules
managerial model is
(internal and no rules) help mgmt make better timely decisions
3 types of enterprises
sole proprietorship
partnership
corporation
sole proprietorship
one person goes into business for sole purpose of profit
partnership
extension of SP 2+ people (if one dies or leaves, entity disappears)
limited liability
Can only lose what you invest (protects personal assets)
Piercing the corporate veil
Exceptions 1.) back taxes 2.) fraud
corporation
invisible, intangible, there to sue and be sued
C-Corp
mother of corporations, all public
subsidiary accounts
small accounts (A, L, SE, D, R, E) that make up a control Uniform Chart of Accounting
control accounts
total of subsidiary accounts
5 steps of accounting cycle
1.) Journalize
2.) Post to Ledger
3.) Foot to Ledger
4.) Trial Balance
5.) Financial Statements
journal entries
breakdown of transaction with debits and credits
1< debits or credits on a journal entry
compound journal entry
future benefits
can be carried forward to accounting periods
stockholders equity
external liability to shareholders
ledger
book of final entry
purpose of a trial balance
condense, check of mathematical accuracy
only things allowed on an income statmetn
revenue and expense
deficit
negative retained earnings
what type of account is accumulated depreciation
contra asset
merchandiser
seller of another’s inventory
periodic method
real counts end of period
perpetual method
computer/recorded counts at time of sale
SKUs
number assigned
FOB destination
seller is paying (opposite of destination)
FOB shipping point
buyer is paying (opposite of shipping point)
FOB
Free On Board
credit terms
discount if you pay earlier
what type of account is a sales discount
contra revenue
what type of account is sales returns and allowances
contra revenue
4 methods of “costing” ending inventory
1.) speicific identification
2.) fifo
3.) lifo
4.) weighted average
debit memorandum
$ out da bank-bank owes you less
credit memorandum
$ into da bank- you are liability to the bank
When and where does balance per book happen
general ledger cash account
at the end of the month
balance per bank
after bank statement
transposition error
a number typo
NSF
nonsufficient funds (awkward)
How long until an asset is non-liquid
assets past a year
tangible assets
land building equipment
intangible assets
patent, trademark, copyright
capital assets
non-inventory assets
capital expenditures
long-lived assets
amortize
intangible assets
cost of an asset is made up of 2 parts
life and salvage value
capitalized
added cost of asset
straight line depreciation equation
(cost of asset- salvage value)/ life
cost driver
relates usage to cost
double declining balance
double SLD percentage
accelerated depreciation
equipment depreciation early in life than later
Can you depreciate more than the base value
no
