Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ACC 201 > Chapter 1 Hw > Flashcards

Chapter 1 Hw Flashcards

1
Q

Service revenue

A

income statement

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

Equipment

A

balance sheet

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

Advertising expense

A

income statement

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

Accounts receivable

A

balance sheet

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

Common stock

A

balance sheet

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

Interest payable

A

balance sheet

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

Cost of renting property: .

A

Expense

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

Truck purchased: .

A

Asset

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

Notes payable: .

A

Liabilities

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

Issuance of ownership shares:

A

Common stock.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Amount earned from performing service:

A

Revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Amounts owed to suppliers:

A

Liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The statement of cash flows would disclose the payment of a dividend

A

in the financing activities section.

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

what things are stockholders’ equity

A

common stock and retained earnings

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

How to calculate retained earnings statement?

A

net income - dividend

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

List assets in order of liquidity

A

cash -> accounts receivable -> supplies -> equipment

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

The basic accounting equation is

A

assets = liabilities + stockholders’ equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

[Liability or Not Liability] cash

A

Not Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

[Liability or Not Liability] Accounts payable

A

Liability

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

[Liability or Not Liability] Dividends

A

Not Liability

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

[Liability or Not Liability] Accounts receivable

A

Not Liability

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

[Liability or Not Liability] Supplies

A

Not Liability

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

[Liability or Not Liability] Equipment

A

Not Liability

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

[Liability or Not Liability] Salaries and wages payable

A

Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

[Liability or Not Liability] Service revenue

A

Not Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

[Liability or Not Liability] Rent expense

A

Not Liability

27
Q

[Affects and Account Title] Costs incurred for advertising.

A

Affects: Expense

Account Title: Advertising expense

28
Q

[Affects and Account Title] Cash received for services performed.

A

Affects: revenue

Account Title: service revenue

29
Q

[Affects and Account Title] Costs incurred for insurance.

A

Affects: expense

Account Title: insurance expense

30
Q

[Affects and Account Title] Amounts paid to employees.

A

Affects: expense

Account Title: salaries and wages expense

31
Q

[Affects and Account Title] Cash distributed to stockholders.

A

Affects: dividends

Account Title: not applicable

32
Q

[Affects and Account Title] Cash received in exchange for allowing the use of the company’s building.

A

Affects: revenue

Account Title: rent revenue

33
Q

[Affects and Account Title] Costs incurred for utilities used.

A

Affects: expense

Account Title: utilities expense

34
Q

[Affects and Account Title] Cash purchase of equipment.

A

Affects: does not affect stockholders’ equity

Account Title: not applicable

35
Q

[Affects and Account Title] Cash received from investors.

A

Affects: common stock

Account Title: not applicable

36
Q

Income Statement

A

Reports success or failure of the company’s operations during the period of the statement.
Summarizes all revenue and expenses for period (month, quarter, or year).
If revenues exceed expenses, the result is a net income. If expenses exceed revenue, the result is a net loss.

37
Q

Retained Earnings Statement

A

Change in ownership based on fiscal period information.
Indicates amount paid out in dividends and amount of net income or net loss for period.
Shows changes in retained earnings balance during period covered by statement.
Time period is the same as that covered by income statement.

38
Q

Assets

A

Assets — resources owned by the business which are expected to provide a value or service to the business at some future point in time.

39
Q

Liabilities

A

Liabilities — creditors claims (obligations or debts of the business) on total assets for resources or services provided to the business in the past.

40
Q

Stockholders’ Equity

A

Stockholders’ Equity — ownership claim on total assets.

41
Q

Balance Sheet

A

Balance Sheet
Shows relationship between assets, liabilities, and stockholders’ equity at a particular date.
In equation form
Assets = Liabilities + Stockholders’ Equity
Referred to as the basic accounting equation

42
Q

Assets = Liabilities + Stockholders Equity is referred to what?

A

basic accounting equation

43
Q

Statement of Cash Flows

A

Reports cash inflows and outflows resulting from financing, investing, and operating activities during the period.
Reports the cash effects of a company’s operations for a period of time.
Shows cash increases and decreases from investing and financing activities.
Indicates increase or decrease in cash balance as well as ending cash balance.

44
Q

INTERRELATIONSHIPS OF STATEMENTS

A

Net income from the income statement is added to beginning retained earnings to determine ending retained earnings.
Ending retained earnings (reported on the retained earnings statement) is also reported on the balance sheet.
The ending amount of cash shown on the statement of cash flows must agree with the amount of cash on the balance sheet.

45
Q

income statement

A

revenues - expenses = net income or net loss

46
Q

retained earning statement

A

retained earnings, beginning add net income - dividends = retained earnings, ending

47
Q

balance sheet

A 
assets 
cash
liabilities
stockholders equity
common stock
retained earning
48
Q

statement of cash flows

A

cash flows
net increase in cash
cash at the beginning of period
cash at end of period

49
Q

Management Discussion and Analysis or annual reports

A

Covers various financial aspects of a company
Ability to pay near-term obligations
Ability to fund operations and expansion
Result of operations

50
Q

Notes to Financial Statements

A

Clarify information presented in the financial statements.

Describe accounting policies or explain uncertainties and contingencies.

51
Q

Auditor’s Report

A
  • Auditor, a CPA, a professional accountant, who conducts an independent examination of the financial accounting data presented by a company.
  • Auditor gives an “unqualified” opinion, meaning the auditor has no reservations concerning the material validity of the presented information, if the financial statements present the financial position, results of operations, and cash flows in accordance with accepted accounting standards.
52
Q

income statement

A

Revenue during the period.

53
Q

balance sheet

A

Supplies on hand at the end of the year.

54
Q

statement of cash flows

A

Cash received from issuing new bonds during the period.

55
Q

balance sheet

A

Total debts outstanding at the end of the period.

56
Q

Auditor’s opinion

A

An expression about whether financial statements conform with generally accepted accounting principles.

57
Q

Corporation

A

A business that raises money by issuing shares of stock.

58
Q

Common stock

A

The portion of stockholders’ equity that results from receiving cash from investors.

59
Q

Accounts payable

A

Obligations to suppliers of goods.

60
Q

Account receivable

A

Amounts due from customers.

61
Q

Creditor

A

A party to whom a business owes money.

62
Q

Stockholder

A

A party that invests in common stock.

63
Q

Partnership

A

A business that is owned jointly by two or more individuals but does not issue stock.

ACC 201 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions