accounting Flashcards
1
Q
What is appreciation?
A
- general increase in value of property that occurs over time
2
Q
an amount of money spent
A
expenditure
3
Q
What are some examples of liquid assets?
A
- cash in checking account
- cash in savings account
- stocks owned
4
Q
type of expense that changes each month
A
variable
5
Q
decrease in value of property as it becomes old
A
depreciation
6
Q
What are some accountants responsibilities?
A
- prepare and interpret financial reports
- follow budgets
- make business decisions
- maintain and review the business records of an individual or organization
- prepare budgets for individuals and businesses
7
Q
money you owe for something
A
liability
8
Q
What is a liability?
A
- money you owe for something
- buy now, pay later
- loans/notes or accounts payable
9
Q
What is depreciation?
A
- the decrease in value of property
- decreases as the item becomes old and gradually wears out
10
Q
Describe a bookkeeper
A
- entry level job
- perform only one or two tasks
- average starting salary $33000 to $36000
11
Q
Preparing forms and reports for taxes or other financial purposes is referred to as _______
A
bookkeeping
12
Q
What are some examples of liabilities?
A
- car loan
- mortgage
- supplies purchased on credit to run a company
13
Q
type of expense that occurs once in awhile
A
periodic
14
Q
Describe a Certified Public Accountant
A
- aka CPA
- have to take a national test to become CPA
- average starting salary $41000 to $43000
15
Q
What are some examples of items that appreciate?
A
- house
- land
- antiques
16
Q
money you have available to spend as a result of working or from other income
A
cash inflow
17
Q
What are the 3 types of business expenses?
A
- fixed expense
- variable expense
- periodic expense
18
Q
Why is accounting a good career?
A
- considered hottest career
- has job stability (means you can get an accounting job anywhere - everyone needs accountants)
- has high salaries
19
Q
What are some examples of variable expenses?
A
- electric bill
- gas bill
- phone bill
- food
- clothing
- waitress employees
- cashier pay
20
Q
amounts of money spent
A
cash outflow
21
Q
costs of operating a business
A
expense
22
Q
Where are some places you could work as an accountant?
A
- for your favorite musician
- target
- doctor’s office
- red cross
- toys r us
- country club
- restaurant
- cerner
- apple
- for your own accounting business
23
Q
What are some examples of items that depreciate?
A
- cars
- electronics
- computers
- ball machine
24
Q
What are some examples of periodic expenses?
A
- car repairs
- Christmas bonus
- spring court maintenance
- birthday presents
- car registration
- school taxes
- building repairs
25
What is financial accounting?
* reporting information to external users (people not involved in day to day business operations) like investors
* used for external use (outside use)
* ex. an annual report is prepared for current or potential investors
26
What are some examples of cash outflow?
* food
* clothing
* transportation
* living expenses
* haircuts
* tennis lessons
* Christmas decorations
27
What is a liquid asset?
* an asset that is easily converted to cash
28
revenue
all income a business receives over a period of time
29
Describe accounting?
* is used in all companies, in all industries and for nonprofit and for profit companies
* helps maximize the company's value
30
expense
costs of operating a business
31
What are some examples of assets?
* house
* barbie collection
* car
* jewelry
* motorcycles
32
What is cash outflow?
* amount of money spent
33
What two things must a business accomplish to survive?
* operate at a profit (make more money then it spends)
* attract individuals skilled enough to run the business
34
type of expense that occurs on a regular basis
fixed
35
general increase in value of property
appreciation
36
something you own of value
asset
37
Hearing Aid Associates spent $50 on ink, $25 on food, and $75 on hearing aids. Susan bought aids for $1100, Ned bought aids for $900 and Lisa bought aids for $1500.
What is the company's cash inflow?
What is the company's cash outflow?
What is the company's net income?
* Cash inflow - $3500
* Cash outflow - $150
* Net Income - $3350 (the amount of money company made - Add up all the money coming in minus the expenses )
38
an asset that is easily converted to cash
liquid asset
39
What is a periodic expense?
* an expense that occurs once in awhile (periodically)
* need to set money aside so you have it when the bill is due
40
What is cash inflow?
* money you have available to spend as a result of working or from other income
* other income includes interest, investment, child support, alimony, social security
41
What is an expenditure?
* an amount of money spent, as a whole or on a particular thing
* goal is to make sure money coming in = money going out
42
What is a fixed expense?
costs that occur on a regular basis
43
What is a variable expense?
* an expense that changes (varies) with each month
* may not be easy to estimate
44
What is an asset?
* something you own of value
* 'one man's trash is another man's treasure'
45
all income a business receives over a period of time
revenue
46
What is management accounting?
* reports info to managers of a company to assist them in decision making
* is for internal use (inside use)
* ex. give an income report (shows all money brought into company) to the owner
47
What are some examples of fixed expenses?
* rent
* mortgage
* insurance premiums
* salary employees
* tax payments
* cable
* newspaper subscription
* magazine subscription
* loan payment
48
What is fiscal year?
* aka financial year or budget year
* period used for calculating annual (yearly) financial statements in business or other organizations
* does not always begin in january and end in december
* runs over any 12 month period
* can be october thru september, august thru july, etc
