Exam Review 1 Flashcards
What is a balance sheet?
What is a statement of retained earnings?
What is a statement of cash flows?
What’s an income statement?
Financial statement that reports whether the business earned a profit and also lists the revenues + expenses
What is the statement of financial positions?
What are classified as assets?
Cash
Supplies
Equipment
Land
Accounts receivable
What accounts are classified as assets?.
Accounts receivable
What are the diff. Types of ACC. ?
Liability acc.
List of liability acc?
Accounts payable
What accounts have a normal balance in debit?
What accounts have a normal balance in credit?
What is normal balance?
What is debit?
What is credit?
Do you log debit or credit first?.
How do you log salaries earned but unpaid?
What is the acc equation?
Assets: liability + equity
What is an adjusted entry? What is it used for?
What is important to note when calculating expenses for insurance
How long is the term
Are the date @ startled of the month?
What is depreciation?
How do you calculate depreciation?
How do you record pre-paid expenses?
An asset account is
A liability account includes
A stock holders equity account includes
A revenue account includes
An expense account includes
What does a credit entry do?
What is required for closing entries ?
What is the diff. Between accrued and cash?
What are the three functions of accounting?
Identifying
Recording
Communicating
What are external users?
Do NOT directly run the organization and have limited access to its acc. information.
What are internal users?
Directly manage the organization.
- Internal reports are specific to needs of managerial or executive employees
What are the four areas of acc
Financial
Managerial
Taxation
Acc-related
What are the three steps of ethical decision making?
- Identify ethical concerns
- Analyze options
- Make ethical decisions
What are the three factors of the fraud triangle?
Opportunity
Pressure
Rationalization
What are the generally accepted accounting principles (GAAP)?
Info needs to have relevance and faithful representation
What is the measurement principle/ cost principle
Acc info is based on ACTUAL cost
When is revenue recognized? (recognized=record)
When goods or services are provided to the customers at the amount expected to be received
What are the four acc. assimptions
Going-concern
Monetary unit
Time period
Business entity
What are assets?
Resources a company owns or controls
They are expected to yield future benefits
What is a receivable?
An asset that promises a future inflow of resources.
ex: when a company provides a service on credit
What are liabilities?
Creditors’ claims on assets. These claims are obligations to provide assets,products, or services others.
