Accounting Flashcards
What is revenue recognition based on?
The delivery of products or services
What are Accounts Receivable?
Cash a company is waiting on. It’s a negative in the CFS.
How do you input a Prepaid Expense?
It’s a negative on the CFS and an asset.
How do you input change in Accounts Payable?
It’s a positive on the CFS and a liability.
What is Accounts Payable?
It tracks services that a company has received but has not yet paid for.
What are Prepaid Expenses?
Services/items that have been paid but not yet incurred and it’s an asset
What is Deferred Revenue?
It’s revenue gained through services/items that have not yet been delivered. (Pre-ordering)
How do you input change in Deferred Revenue?
It’s a positive on the CFS and a liability
How do you input change in inventory?
It’s a negative on the CFS.
Why do you need an income and cash flow statement?
Income and cash flow are different. Different items affect different statements
What does a balance sheet track
Assets, liabilities, and equity
How do you input Capital Expenditures?
Initially on the CFS, gradually on the IS
What is depreciation?
The gradual IS input for capital expenditure
What is a non-cash expense?
An expense that decreases the companies taxes
How do you input investments?
The cost of the investments go on the CFS. The income/interest from said investments go on the IS.
