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Intermediate Accounting > Chapter 2 - Financial Statements > Flashcards

Chapter 2 - Financial Statements Flashcards

1
Q

What are the 2 components of accounting? (FM)

A
  1. Financial accounting

2. Management accounting

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2
Q

The purpose of “financial accounting” is to _______

A

Disclose financial information (general purpose accounting)

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3
Q

General purpose accounting is to ______

A

Disclose information to investors in general

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4
Q

“Income statement” is also known as _______

A

“Profit and Loss” (P/L)

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5
Q

Balance sheet and Income statement are based on _____ basis

A

Accrual

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6
Q

Statement of cash flows is based on _____ basis

A

Cash

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7
Q

What are the 5 types of “assets”? (CLPIO)

A
  1. Current assets
  2. Long-term assets (investments)
  3. Property, Plant, and Equipment (PPE)
  4. Intangible assets
  5. Other assets
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8
Q

What are 11 types of “current assets”? (CSALNAFWRPD)

A
  1. Cash/cash equivalents
  2. Short-term investments (trading, AFS)
  3. Accounts receivable
  4. Less allowance for doubtful account
  5. Notes receivable
  6. Advances to suppliers
  7. Finished goods
  8. Work-in-progress
  9. Raw materials
  10. Prepaid expenses
  11. Deferred tax assets
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9
Q

What are the 3 types of “long-term assets”? (ILI)

A
  1. Investment in securities (AFS or HTM)
  2. Land held for future plant site
  3. Investment in special funds
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10
Q

What are the 6 types of PPE? (LBELLL)

A
  1. Land
  2. Building
  3. Equipment/machinery
  4. Leased assets (capital lease)
  5. Leasehold improvements
  6. Less: Accumulated depreciation
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11
Q

What are the 2 types of “intangible assets”? (GP)

A
  1. Goodwill (net of amortization)

2. Patents (net of amortization)

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12
Q

What are the 4 types of “other assets”? (NLPD)

A
  1. Non-current receivable
  2. Long-term prepaid expense
  3. Property for sale
  4. Deferred tax assets
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13
Q

What are the 2 types of “liabilities”? (CN)

A
  1. Current liabilities

2. Non-current liabilities

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14
Q

What are the 9 types of “current liabilities”? (ANISIAUDC)

A
  1. Accounts payable
  2. Notes payable
  3. Interest payable
  4. Salaries payable
  5. Income tax payable
  6. Advances from customers
  7. Unearned revenue
  8. Deferred tax liabilities
  9. Current portion of long-term debt
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15
Q

What are the 7 types of “non-current liabilities”? (BPLDCPA)

A
  1. Bonds payable
  2. Plus: Unamortized premium on bond
  3. Less: Unamortized discount on bond
  4. Deferred tax liabilities
  5. Capital lease liabilities
  6. Pension plan liabilities
  7. Accrued warranty
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16
Q

What are the 4 types of “shareholders’ equity”? (PRAT)

A
  1. Paid in capital
  2. Retained earnings
  3. Accumulated other comprehensive income (AOCI)
  4. Treasury stock at cost
17
Q

What are the 2 types of “paid in capital”? (CA)

A
  1. Capital stock

2. Additional paid-in capital

18
Q

What are the 2 types “capital stock”? (PC)

A
  1. Preferred stock

2. Common stock

19
Q

What are the 5 types of “additional paid in capital”? (PCTSS)

A

(From)

  1. Preferred stock
  2. Common stock
  3. Treasury stock
  4. Stock option
  5. Stock warrant
20
Q

What are the 2 types of “retained earnings”? (AU)

A
  1. Appropriated

2. Un-appropriated

21
Q

What are the 6 accounts reported in a “statement of cash flows”? (OIFNBE)

A

(Cash flows from…)

  1. Operating activities
  2. Investing activities
  3. Financing activities
    - —-
  4. Net increase in cash/cash equivalents
  5. Beginning cash/cash equivalents
  6. Ending cash/cash equivalents
22
Q

What are the two accounts reported in “cash flows from operating activities (CFO)”? (NA)

A
  1. Net income

2. Adjustment of non-cash & non-operating activities

23
Q

What are the 8 accounts under “adjustment of non-cash & non-cash operating activities”? (DELAIAND)

A
  1. Depreciation
  2. Equity in income
  3. Loss on sale of equipment
  4. Accounts receivable (net)
  5. Inventory
  6. Accounts payable and accrued expenses
  7. Notes payable
  8. Deferred tax liability
24
Q

What are the 2 accounts under “cash flow from investing activities (CFI)”? (EES)

A

(Purchase of…)

  1. Equipment
  2. Securities
25
Q

What are the 3 accounts under “cash flow from financing activities (CFF)”? (ISD)

A
  1. Issuance of stock
  2. Sale of treasury stock
  3. Dividend

Intermediate Accounting (9 decks)

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