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Humanities 2 > ACCOUNTING > Flashcards

ACCOUNTING Flashcards

1
Q

short-term liab. invoices owed to suppliers

A

Accounts payable

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2
Q

paying current portion of loans

A

Loans payable

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3
Q

income received by a company from its sales of goods or the provision of services

A

sales revenue

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4
Q

like buying a plan ticket and them keeping it in this account till the service is made

A

defered revenue

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5
Q

balance of money due to a firm for goods or services delivered or used but not yet paid for by customers

A

accounts receivable

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6
Q

portion of companies fixed assets cost that is being used up during the accounting period shown in the income statement

A

depreciation expense

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7
Q

is a contra- asset which means that it decreases the value of an asset (PPE) on the balance sheet

A

accumulated depreciation

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8
Q

an expense that can be subtracted from an individual’s gross income to reduce the total amount subject to tax. (before applying tax rates)

A

tax deduction

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9
Q

an amount that taxpayers can subtract from taxes owed to the gov. (after applying tax rates)

A

tax credit

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10
Q

gross income (wages, salaries, interest) minus specific deduction (IRA contribution)

A

adjusted gross income

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11
Q

category that defines year tax filing requirements: which tax rates, deductions, and credits that are used in computing the amount of tax paid

A

filing status

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12
Q

a person who entitles a taxpayers to claim dependent-related tax benefits

A

dependent

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13
Q

a standard dollar amounts that non-itemizer taxpayer may subtract from their income before the tax rate is applied.

A

standard deduction

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14
Q

individual dollar amounts that taxpayers ca claim on their tax return to reduce income before the tax rate is applied (charitable contributions, interest on a home mortgage).

A

ITEMIZED DEDUCTION

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15
Q

the dollar amount subjects the tax rates. AGI less standard or itemized deductions

A

taxable income

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16
Q

the total amount of taxes owed divided by total taxable income

A

average tax rate

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17
Q

tax rate applied to the next dollar earned

A

marginal tax rate

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18
Q

tax liab/all income

A

effective tax rate

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19
Q

amount owed in taxes

A

tax liab

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20
Q

tax liab/ taxable income

A

average tax rate

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21
Q

return on equity
“preformance”

A

Net income/total equity

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22
Q

profit margin
“profitability”

A

net income/ sales

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23
Q

asset turnover
“efficiency”

A

sales/ assets

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24
Q

assets to equity
“leverage”

A

total assets/ total equity

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25
income statement, current assets, and short term liab
operating
26
long term assets and PPE
INVESTING
27
debt and equity
financing
28
current ratio
current assets/ current liab's
29
cash
asset
30
investments
asset
31
accounts receivable
assets
32
inventory
asset
33
prepaid expenses
asset
34
PPE
asset
35
tangible assets
asset
36
operating assets
asset
37
intangible assets
asset
38
days inventroy held
days in period/ (cogs/inventory)
39
days sales outstanding
days in period/ (sales/accounts recerivable)
40
days payable outstanding
days in period/(cogs/ACCOUNTS PAYABLE)
41
accounts payable
liab
42
accrued liab
liab
43
short term debt
liab
44
current portion long term
liab
45
current portion operating lease
liab
46
long term debt
liab
47
operating lease liab
liab
48
other long term liab
liab
49
deferred revenue
liab
50
revenues
income statement
51
cogs
income statement
52
gross profit
income statement
53
SG&A
income statement
54
other operating expense
income statement
55
operating income
income statement
56
invest expense
income statement
57
other income net
income statement
58
income before income tax
income statement
59
income tax
income statement
60
net income
income statement
61
ROE
(profit margin)(asset turnover)(equity multiplier)
62
CASH GAP
days inventory held + days sales outstanding - days payable outstanding
63
accruals to asset ratio
net income - operating cash flows/ total assets
64
op: - inv: - fin: + cash flow cycle
startup
65
op: + inv: - fin: + cash flow cycle
growth
66
op: + inv: - fin: - cash flow cycle
mature "cash Cow"
67
op: - inv: + fin: - or + cash flow cycle
decline
68
assets expenses dividends
debit
69
liab common stock retained earnings revenues contra-assets
credit
70
means left
debit
71
means right
credit
72
assets = liabilities + equity
(debit +, credit -) = (debit -, credit +) + (debit -, credit +)
73
retained earnings = net income - dividends
(debit - , credit +) = (debit -, credit +) - (debit +, credit -)
74
common stock
debit -, credit + owners equity
75
net income = revenues - expenses
(debit -, credit +) = (debit -, credit +) - (debit +, credit -)
76
retained earnings
owners equity
77
sales
revenue
78
cogs
expense
79
debit and credits should equal each other
true
80
cash balance on financial statement
beginning balance + increase - decrease
81
an account that never closes and is always running
normal accounts
82
retained earnings (debits and credits)
debit - credit +
83
revenues (debits and credits)
debit - credit +
84
expense (debits and credit)
debit + credit -
85
dividends (debit and credit)
debit + credit -
86
which type of accounts will be closed?
expenses, revenues, and dividends
87
an account that needs to be closed at the end of each period
nominal account
88
which types of accounts do not need to be closed?
retained earning and accumulated depreciation
89
sales revenue
credit
90
insurance expense
credit
91
sales of goods or services collection of understand dividends
operating activities cash inflow
92
purchase of inventory payment of operating expenses payment of interest payment of income taxes
operating activities cash outflow
93
sales of investments sales of long-term assets collection of notes receivable sale of subsidiary
investing activities cash inflow
94
purchase of investments purchase of long-term assets lending with notes receivable cash acquisition of another company
investing activities cash outflow
95
issuance of bonds or notes payable issuance of stock
financing activities cash inflow
96
repayment of bonds or notes payable payments to repurchase stock payment of dividends
financing activities cash outflow
97
net change in cash
operating cash flow + investing cashflow + financing cash flow
98
ending cash balance
beginning cash balance + net change in cash
99
entitled dividends (preferred stock)
par value X dividend rate
100
common stock value
number of shares issued x par value
101
what is the proper way to common-size an income statement?
divide everything by sales
102
what is the proper way to common-size a balance sheet?
divide everything by the assets
103
inventory turnover
cogs/inventory
104
days in inventory
(days in period)/inventory turnover
104
accounts receivable turnover
sales/ accounts receivable
104
days sales outstanding
days in period/account receivable turnover
105
accounts payable turnover
cogs/accounts payable
106
days payable outstanding
days in period/ accounts payable turnover
107
companies that expect to miss the earnings target by a large margin have incentives to manage earnings downward to pile all of the bad earnings news into one year
big bath
108
increasing product return, increase the estimated value on investment, increase the useful life of an asset
accounting managment
109
decrease the spending on social media ads., delay when inventory is shipped to a customer, move up the date of when investments are sold, decrease employee bonuses
real activities managment
110
cooking the books
fraudulent accounting
111
which thing is the easiest way to reduce fraud?
opportunity
112
designed to keep errors or fraud from occurring in the first place
preventative controls
113
designed to detect errors of fraud that has already occurred
detective controls
114
average tax rate you are paying on all your income
effective tax rate

Humanities 2 (3 decks)

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