Corporations 10 Flashcards
What does GAAP stand for?
Generally Accepted Accounting Principles
GAAP: Generally Accepted Accounting Principles based on:
1.
2.
3.
4.
- Recognition
- Measurement
- Presentation
- Disclosure
What does FAF stand for?
Financial Accounting Foundation; drafts, manages, and publishes the GAAP
What does FASB stand for?
Establishes financial accounting and reporting standards for public and private companies and nonprofits.
How many critical financial statements are there?
4
Four critical financial statements, produced at ______ ___________ (__________, etc.)
regular intervals
quarterly
Four critical Financial Statements produced at regular intervals (quarterly, etc):
1.
2.
3.
4.
- Balance sheet
- Income Statement
- Cash Flow Statement
- Statement of Stockholders Equity
How much do you have in your bank account – profits, anything coming out, and you get net balance
Balance Sheet
Simply statement of how much income the business is generating.
Income Statement
Keeps track of how much influx of cash that you have at any given time
Cash Flow Statement
____________: all of a corporation’s financial transactions summarized into different categories and subcategories on the financial statements.
Accounts
Accounts: ____ of a corporation’s financial transactions summarized into different categories and subcategories on the financial statements.
all
Accounts: all of a _________ ________ ________ summarized into different categories and subcategories on the financial statements.
corporation’s financial transactions
Accounts: all of a corporation’s financial transactions _________ into different categories and subcategories on the financial statements.
summarized
Accounts: all of a corporation’s financial transactions summarized into ________ ________ and _________ on the financial statements.
different categories
subcategories
Accounts: all of a corporation’s financial transactions summarized into different categories and subcategories on the ________ _______.
financial statements
Capital: ________
Pay operating expenses: employees, utilities, income taxes, real property for business to operate
Purchase inventory/ components for sale
Cash
Capital: Cash
1. ?
2.
3.
4.
5.
6.
- Pay operating expenses
Capital: Cash
1.
2. ?
3.
4.
5.
6.
- employees
Capital: Cash
1.
2.
3. ?
4.
5.
6.
- utilities
Capital: Cash
1.
2.
3.
4. ?
5.
6.
- income taxes
Capital: Cash
1.
2.
3.
4.
5. ?
6.
- real property for business to operate
Capital: Cash
1.
2.
3.
4.
5.
6. ?
- purchase inventory/ components for sale
Corporation _____ _______.
sells inventory
_________ sells inventory.
corporation
________ obtains cash or accounts receivable (somebody owes money for inventory).
corporation
Corporation obtains ______ or _____ ______(somebody owes money for inventory.)
cash
accounts receivable
_______ added to balance sheet (_____ balance increases).
cash
cash
Cash added to ______ ______(cash balance increases).
balance sheet
Accounts receivable _______ _____.
collected on
_______ ______ collected on.
accounts receivable
________ or _______ _______ used to buy more inventory.
cash or accounts receivable
Cash or accounts receivable used to ____ ____ _____.
buy more inventory
Corporation is operating productively, and cash from inventory sale is generating a profit and _____ ____ ____ ____.
net positive cash flow
______ _______
* Cash Balance Insufficient
* Inventory Sale insufficient to satisfy capital needs
External Capital
External Capital
* ______ _____ _____
* Inventory Sale Insufficient to Satisfy Capital Needs
Cash Balance Insufficient
External Capital
* Cash Balance Insufficient
* _______ _______ insufficient to Satisfy _____ _____.
inventory sale
capital needs
