Brainscape's Knowledge GenomeTM

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


See full index

ACCT 200 > EXAM I > Flashcards

EXAM I Flashcards

1
Q

FASB

A

Financial accounting standards board, non governmental, responsible for creating accounting standards

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

Accounting equation

A

Assets = liability + owners equity

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

Two components of Owners Equity

A

Retained Earnings and Common Stock

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

What makes up Retained earnings

A

Net income - dividends

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

What makes up net income

A

Revenue - expenses

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

Contra asset

A

Accumulated depreciation (+ -) buddy accounts with depreciation expense

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

A = L + OE account balances

A

(+ -) = (- +) + ( - +)

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

Types of business entities

A
  1. Sole proprietorship (work for yourself, accumulation of capital is difficult)
  2. Partnership (less workload, 50% 50% representation)
  3. Corporation (Limited liability, giving up equity)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Dividend

A

Return on investors investment

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

Market Cap

A

(# of shares) x (worth of shares)

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

IPO

A

initial public offering, going public

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

How to acquire cash

A
  1. selling product of service
  2. borrowing from lenders
  3. selling stock
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

1930 Congress created what?

A

SEC to regulate and enforce rules

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

GAAP

A

Generally accepted accounting principles

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

IASB

A

international accounting standards board

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

Four types of financial statements

A
  1. Balance Sheet (Assets and liabilities and owners equity)
  2. Income statement (Revenue and expenses)
  3. Statement of changes in retained earnings
  4. Statement of cash flow
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Account receivable is what kind of account

A

Asset

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

Account payable is what kind of account

A

liability

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

Prepaid expense (prepaid rent, prepaid insurance) is what kind of account

A

Asset

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

Unearned revenue is what kind of account

A

Liability

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

Net Book Value

A

Historical cost - accumulated depreciation

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

Direct method for cash flow always starts with what account

A

CASH ACCOUNT

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

Dividends do what to retained earnings?

A

Decrease

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

A normal balance for retained earnings is on which side?

A

Credit

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

Accrual Accounting

A

When the cash is recieved after the service (service first, cash after) assume this is what most companies use

26
Q

Deferral Accounting

A

When the cash is recieved before a service. You are deferring the service, thus cannot book the revnue as recieved becuase you have not compelted the service or earned the revenue

27
Q

Using up of an asset is a ____

A

espense

28
Q

Must complete the _____ before posting the adjustments for _____

A 
income statement (revenue - expenses) 
Income Taxes
29
Q

Indirect method of cash flow starts with what account

A

Net Income

30
Q

Current ratio

A

current assets/current liabilties

31
Q

Working capital

A

Current assets - current liabilites

32
Q

Debt ration

A

total liabilties/total assets

33
Q

COGS

A

Expense, getting matieral that being sold

34
Q

Turn over ratio

A

(Income statement amount)/((beginning balance + ending balance)/2)

SALES/INVENTORY

35
Q

Revenue Concept

A

When & how much to record

36
Q

Matching Concept

A

expenses shoudl match with the revenue they create

37
Q

Depreciation is what kind of account

A

Expense, OE

38
Q

Expense and _____

A

Debit

39
Q

Trial Balance must ____ on ____

A

equal, both sides

40
Q

Trial Balance

A

After posting to the general ledger, the ledger accounts get posted to trial balance,

41
Q

Accounting Process Steps

A
  1. Source documents
  2. Transaction analysis
  3. Journal
  4. Posting
  5. Trial Balance
42
Q

What is closed the income summary?

A

Temporary expenses and revenue (OE accounts)

43
Q

Cash Basis Accounting

A

Only record when you see and have the exchange of cash

44
Q

Revenue Recognition Principle

A

Revenue is recorded when the company has met its performance obligations.

45
Q

When you decrease a payable you ____

A

Decrease Cash

46
Q

When you decrease a recieveable you ____

A

increase Cash

47
Q

Balance Sheet accounts

A

First two columns (Assets and Liabilities)

48
Q

Income Statement Accounts

A

Third colum (OE, revenue and expenses)

49
Q

What gives the board of directors the right ot change a companys CEO

A

Stock holders elect the board and the board have ability to elect and fire

50
Q

Purpose for adjusting entries is to

A

accurately reflect the books

51
Q

Double taxation

A

Occurs in a corporation, net income is taxed, then the dividends are paid out to share holds that that is taxed

52
Q

Reversing entries

A

simply flip the debit and credit from adjusting entries. Only do when there is and expense and a payable

53
Q

Papa John WSJ

A

Chairman, John Schnatter, resigners after using a racial slur in a conference call.

Also resigned from the University of Louisville board for racial slurs

KEY POINT: BOD are chosen by the shareholders, and the board has the right to hire and fire people

54
Q

Lyft WSJ

A

Lyft raised new capital to increase rival with Uber

New capital doubled evaluation to 15.1 billion

Uber and lyft are battling for future transportation

Lyft expanded into the international market

IPO = initial public offering

55
Q

Bank of America WSJ

A

Merrill Lynch must pay a settlement of SEC charges for electronic trading charges

Lawsuit for misleading clients by routing orders to high-speed trading firms without telling customers

Avoid access fees, typically charged by exchanges and receives a commission from customers

Masking lasted 5 years

Key Point = MASKING (depriving customer of ability to make informed decisions regarding their orders)

56
Q

Hartland Payment Systems WSJ

A

Insider trading against Robert Carr (former CEO) brought by the SEC

Gave romantic partner details about his company’s planned sale to a larger rival before it became public

Partner bought stocked based on confidential information - Carr lend girlfriend money

punishment to get rid of profits and pay civil monetary fee

57
Q

S&P

A

Illegally profiting from insider trading

Pinto-Thomas, financial analysis, leaked a deal’s information to two friends before the deal was announced

Valspar and Sherwin-Williams merged and he told friends what stock to buy

Two friends bought shares and made about 200,000

Pinto-Thomas charged with securities fraud and conspiracy

58
Q

Tesla WSJ

A

Some workers worried about getting paid

Model 3 drained cash

Tesla now believed to be a financial risk to their companies

Tesla’s argument was “we were arguing if our parts supplied to buyers were correct”

Tesla wants to go private (taken off the markets)

59
Q

AT&T WSJ

A

CEO Randall Stephenson addressed topics involving Trump, taxes and Moonves (CEO of CBS)

At&T buying somehing from time warner and Stephenson suspected Trump as interfering with department of justice in the deal

Stephen offered 1,000 bonus for workers to go against Trump

Trump calls Stephensen, thanking him for the support

Les Moonves was charged with sexual assault

60
Q

Microsoft WSJ

A

Bought Nokia for many millions more than it was actually worth

Had to make adjusting entries to reflect the actual worth of Nokia (1 b)

Sold Nokia and took the loss in profit

61
Q

In statement of cash flows, sales revenue most likely goes with what account?

A

Account recievable (other information)

62
Q

When paying off prepaid rent as an adjusting entry, the two accounts effected and ____ & ____

A

prepaid rent and rent expense

ACCT 200 (2 decks)

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