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Accounting > Final Exam Review > Flashcards

Final Exam Review Flashcards

1
Q

What is a T-Account

A

Summary of all transactions in each account
-All T-Accounts are summarized in the General Ledger

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2
Q

EPS equation

A

(Net Income - Preferred Dividends) / Weighted Average # of Common Shares Outstanding

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3
Q

Is EPS required to be disclosed on the face of the Income Statement

A

Yes

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4
Q

Gross Sales

A

Sales before applying discounts

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5
Q

Net Sales formula

A

Gross Sales - Discounts
Discounts = Credit Card, Cash, Return

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6
Q

Allowance For Doubtful Accounts (AFDA) 2 equations?

A

1) Credit Sales x Bad Debt Rate
2) AFDA bb + Bad Debt Expense - Write Offs

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7
Q

What type of account is an AFDA Account

A

Permanent Contra Asset Account

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8
Q

Inventory/COGS full equation

A

Beginning Inventory + Purchases = Cost of goods available for sale - Ending Inventory = Cost of Goods Sold

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9
Q

What are the 4 Inventory Costing Methods?

A

1) Specific Identification
2) Average Cost
3) LIFO
4) FIFO

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10
Q

Formula for Average Cost Inventory Method

A

COGAS / Total Unites Available For Sale = Average Price
-Average Price x EI

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11
Q

What are the 3 depreciation methods?

A

1) Units of Production
2) Straight Line
3) Double Declining

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12
Q

Units of Production Depreciation Equation

A

((Cost - Salvage Value) / Estimated # of units produced ) x units actually produced

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13
Q

Intangible Assets

A

Assets with no physical features
-Either definite or indefinite life

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14
Q

Definite Life Intangible Asset

A

Will end at some point
-Amortized on a straight line bases
-Ex: Patent

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15
Q

Indefinite Life Intangible Asset

A

Will not end
-Not Amortized but tested for impairment yearly
-Ex: Goodwill

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16
Q

What are the 3 Current Liabilities

A

1) Accounts Payable
2) Accrued Liabilities
3) Unearned Revenue

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17
Q

AP Turnover Equation

A

COGS / Average AP

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18
Q

Average days to pay AP equation

A

365/ AP Turnover

19
Q

Steps for Solving TVM Problems:

A

1) Solving for PV/FV of 1 or Annuity
2) Calculate I and N
3) Find PV/FV factor or use excel
4) Multiply invest $ x factor

20
Q

Bond @ Premium

A

-Market Rate < Stated Rate
-We get more money

21
Q

Bond @ Par

A

-Market Rate = Stated Rate
-Equal amount of money

22
Q

Bond @ Discount

A

-Market Rate > Stated Rate
-We get less money

23
Q

Premium Bond Issuance JE

A

Cash(+A)
Bonds Payable(+L)
Premium on BP (+L)

24
Q

Stockholders Equity Equation

A

Contributed Capital + Retained Earnings Ending

25
Q

Authorized Shares

A

Maximum number of shares a company is allowed to issue

25
Q

Contributed Capital is made up of what?

A

Common Stock
Preferred Stock
Treasury Stock (Negative Number)

26
Q

Outstanding Shares

A

Total number of shares held by stockholders

27
Q

Treasury Shares

A

Shares of a stock that the company had re purchased
-decrease to CC
-XSE account
-No voting rights

28
Q

Issued Shares Equation

A

Outstanding + Treasury

29
Q

AICPA

A

Supports FASB with development of GAAP

30
Q

PCAOB

A

Oversees Accounting Professionals who audit publicly traded companies

31
Q

3 Conditions for fraud to occur

A

1) Incentive
2) Opportunity
3) Rationalization

32
Q

Statement of Cash flows is made up of what?

A

Operating
Investing
Financing Activities

33
Q

Operating Activities is what?

A

Net Income
Daily operations (AP, AR, Gains/Losses, Expenses)

34
Q

Investing Activities is what?

A

Sale or purchase of PP&E
When we invest in others (ST or LT Investments)

35
Q

Financing Activities are what?

A

When others invest in us

36
Q

Quality of Income Ratio:

A

Cash flow from operating activities/ net income

37
Q

Net Profit Margin Equation

A

Net Income / Net Sales

38
Q

Return on Equity Equation

A

(Net Profit Margin x Total Asset TO x Financial Leverage)

(Net Income / Total SE)

39
Q

Quick Ratio

A

(Cash/Cash Equiv + ST Investment + Net AR) / Current Liabilities

40
Q

Debt to Equity Ratio

A

Total Liabilities / Total Stockholders Equity

41
Q

JE of Prepaid Account

A

Prepaid Asset (+A)
Cash (-A)

42
Q

Net AR equation

A

AReb - AFDAeb

43
Q

JE of Depreciation Expense

A

Depreciation Expense (+E,-SE)
Accumulated Depreciation(+XA)

Accounting (6 decks)

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