Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Business Administration > Ch11 > Flashcards

Ch11 Flashcards

1
Q

accounting

A

comprehensive system for collecting, analyzing, and communicating financial information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

bookkeeping

A

recording accounting transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

accounting information system (AIS)

A

organized procedure for identifying, measuring, recording, and retaining financial information so it can be used in accounting statements and management reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

who uses accounting informatioN?

A

business managers – set goals and develop plans
employees and unions – to get paid and to plan for/receive benefits (retirement, health care, etc)
investors – to estimate return to stockholders, company’s growth prospects
tax authorities – to plan for tax inflows and ensure payments are made on time
government regulatory agencies – to fulfill duties )ensurepotential investors have valid info)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

controller

A

person who manages all of the firm’s accounting activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

financial accounting system

A

process whereby interested groups outside of the company (such as stockholders, unions, etc) are kept informed about the financial condition of the firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

managerial accounting

A

internal procedures that allow managers to spot problems and help them plan and make decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

three types professional accounting organizations in canada

A

Chartered Accountants, Certified Management Accountants, and Certified General Accountants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Chartered Professional Accountant

A

designation used to unify the accounting profession in Canada

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

chartered accountant

A

person who has the experience and education requirements (university degree and an educational program) and has passed a licensing examination

  • acts as an outside accountant for other firms or for individuals
  • typically provide audit, tax, and management services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

certified general accountant

A

individual who has completed an education program and passed a national exam

  • works in private industry or a CGA firm
  • focus on external financial reporting
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

certified management accountant

A

designation given by the society of management accountants of canada

  • individual must complete a university degree, pass a two-part national exam, and complete a strategic leadership program
  • focus on strategic management and resource deployment and planning overall strategy for the firm
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

audit

A

accountant/s examination of a company’s financial records to determine if it used proper procedure to prepare its financial reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

generally accepted accounting principles (gaap)

A

standard rules and methods used by accountants in preparing financial reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

International Financial Reporting Standards (ifrs)

A

global gaap created by International Accounting Standards Boards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

forensic accountant

A

accountants who track down hidden fnds in business firms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

management consulting services

A
  • range from personal financial planning to corporate financial planning
  • specialized accounting services to help managers resolve problems in finance, production scheduling, etc
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

accounting cycle

A
  • analyze transaction documents
  • record transactions to journal
  • transfer entries from journal to a ledger
  • do a trial balance
  • prepare financial statements
  • analyze financial statements
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

private accountant

A

accountant hired as a salaried employee to deal with company’s day-to-day accounting needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

accounting equation

A

assets = liabilities + owners’ equity

- formula used by accountants to balance data for firm’s financial transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

asset

A

anything of economic value owned by a firm or individual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

liability

A

any debt owed by a firm or individual to others

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

owners’ equity

A

any positive difference btwn a firm’s assets and its liabilities (what would remain for a firm’s owners if the company were liquidated, all assets sold, and all its debts were paid)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

double-entry accounting systems

A

bookkeeping system that requires every transaction to be entered in two ways – how it affects assets and how it affects liabilities and owners’ equity – so that the accounting equation is always in balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
financial statements
any of several types of broad reports regarding a company's financial status (ex. balance sheets, income statements, and/or statements of cash flow)
26
balance sheet
type of financial statement that summarizes a firm's financial position on a particular date in terms of its assets, liabilities, and owners' equity
27
three types of assets
current, fixed, and intangible
28
current assets
cash and other assets that can be converted to cash within a year (ex cash, merchandise inventory, prepaid expenses)
29
liquidity
the ease and speed with which an asset can be converted to cash (cash is perfectly liquid)
30
non-liquid assets
accounts receivable, merchandise inventory, and prepaid expenses
31
accounts receivable
amounts due to the firm from customers who have purchased goods or services on credit
32
merchandise inventory
cost of merchandise that has been acquired for sale to customers but it still on hand
33
prepaid expenses
supplies on hand and rent paid for the period to come
34
fixed assets
assets that have long-term use or value to the firm (ex land, buildings, machinery)
35
depreciation
distributing the cost of a major asset over the years in which it produces revenues -- calculated each year by subtracting the asset's original value divided by the number of years in its productive life
36
intangible assets
non-physical assets that have economic value but whose precise value is difficult to calculate (such as patents, trademarks, copyrights, franchise fees)
37
goodwill
amount paid for an existing business beyond the value of its other assets
38
current liabilities
debts that must be paid within one year (include accounts payable)
39
accounts payable
amounts due from the firm to its suppliers for goods and/or services purchased on credit
40
long-term liabilities
debts that are not due for at least one year (normally borrowed funds on which company must pay interest)
41
paid-in capital
additional money invested in firm by the owners (owners' equity)
42
three parts of owners' equity
common stock, paid-in capital, and retained earnings
43
retained earnings
company's net profits less any dividend payments to shareholders
44
income statement (profit-and-loss statement)
type of financial statement that describes a firm's revenues and expenses and indicates whether the firm has earned a profit or suffered a loss during a given period
45
revenue
money received by a firm as a result of selling a good or service or from other sources such as interest, rent, and licensing fees
46
revenue recognition
formal recording and reporting of revenues in financial statements
47
matching principle
expenses should be matched with revenues to determine net income for an accounting period
48
cost of goods sold
expenses directly involved in the producing or selling of a good or service during a given time
49
gross profit (gross margin)
firm's revenues minus its cost of goods sold
50
operating expenses
costs incurred by a firm other than those included in cost of goods sold (ex. salaries, insurance, maintenance costs, etc)
51
operating income
compares gross profit from business operations against operating expenses
52
net income (net profit)
firm's gross profit minus operating expenses and income taxes
53
statement of cash flow
financial statement that describes a firm's generation and use of cash during a given period - shows the effects on cash from 3 types of business activity: - cash flow from operations (transactions involved in buying and selling goods/services) - cash flow from investing (cash used in or provided by investing or buying/selling property and equipment) - cash flow from financing (reports net cash from all financing activities -- borrowing or issuing stock, as well as outflows for payment of dividends and repayment of borrowed money)
54
budget
detailed financial plan for estimated receipts and expenses for a period of time in the future, usually one year
55
solvency ratios
ratios that estimate the financial risk in a company
56
short-term solvency ratios
financial ratio for measuring a company's ability to pay immediate debts
57
current ratio
financial ratio for measuring company's ability to pay current debts out of current assets (current assets divided by current liabilities)
58
long-term solvency
calculated by dividing debt (total liabilities) by owners; equity
59
debt-to-equity ratio
form of debt ratio calculated as total liabilities divided by owners' equity
60
leverage
using borrowed funds to make purchases, thus increasing the user's purchasing power, potential rate of return, and risk of loss
61
profitability ratio
measure of a firm's overall financial performance in terms of its likely profits
62
return on equity
form of profitability ratio calculated as net income divided by total owners' equity (net income earned for each dollar invested)
63
return on sales
ratio calculated by dividing net income by sales revenue (how much profit for each dollar of sales revenue)
64
earnings per share
form of profitability ratio calculated as net income divided by the number of common shares outstanding
65
activity ratio
measure of how efficiently a firm uses its resources
66
inventory turnover ratio
activity ratio that measures the average number of times inventory is sold and restocked during the year

Business Administration (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions