Acct #1 Flashcards
1
Q
Accounting Definition
A
system to record, summarize and report financial information for external stock holders to aid in decision making.
2
Q
Financial Accounting descriptions
A
External Users GAAP Periodic/ Annual Organization wide Historical
3
Q
Managerial Accounting descriptions
A
Internal Users Non-GAAP On demand/ as needed decision making level Future oriented
4
Q
Net Income formula
A
Revenue-Expenses
5
Q
Cost
A
sacrificing of resources to achieve an objective
6
Q
Assets
A
Liabilities + Owners Equity
7
Q
Out of pocket cost
A
actual cash outlay
8
Q
Opportunity Cost
A
cost of NOT doing something
9
Q
Direct Cost
A
Easily traceable source
10
Q
Indirect Cost
A
Not easily traceable
11
Q
Variable Cost
A
As cost rises, so do units
12
Q
Fixed Cost
A
Cost remains same as units increase
13
Q
Direct Materials
A
Major material imports
14
Q
Direct Labor
A
labor directly involved in making a product
15
Q
Manufacturing overhead
A
all other expenses besides direct materials and direct labor
