Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Accounting > Financial Accounting Terms > Flashcards

Financial Accounting Terms Flashcards

1
Q

Accounting

A

Academic discipline involving the reporting, interpretation, and organization of a financial structure for a business. It is a “language of business.” Accounting is a measurement, control, and communication tool.
Accounting improves decision-making.
Accounting is heavily influenced by the ethics of individuals.

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

Federal Agency: Securities and Exchange Commission (SEC)

A

Rule enforcer: develop rules and enforce securities law. Established 1934.

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

Federal Agency: Government Accountability Office (GAO)

A

Government watchdog: work for Congress and play a very important role in investigating program spending related to the use of public funds. Established 1921

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

Federal Agency: Internal Revenus Service (IRS)

A

Tax Man: deal with collecting taxes and enforcing the IRS code. Established 1862

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

Governing Body: American Institute of Certified Public Accountants (AICPA)

A

It is the main professional association for CPAs and develops additional guides that assist them when they are implementing U.S. GAAP. Est. 1887

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

Governing Body: Governmental Accounting Standards Board (GASB)

A

This board is in place to develop standards of financial reporting for state as well as local governments. Est. 1984

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

Governing Body: Financial Accounting Standards Board (FASB)

A

Likely the most important governing body in this group. They have a critical role relating in developing U.S. GAAP. The FASB develops new standards and controls the implementation of previous standards, as well as new standards that are coming out. Est. 1973

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

GAAP

A

Generally Accepted Accounting Principles. All publicly traded companies in US must follow these principles. Objectives: Relevance, Reliability, Comparability.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

IFRS

A

International Financial Reporting Standards. Applies to ALL international companies. Objective: standardize the accounting procedures across all nations.

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

Accountant

A

A practitioner with acquired skills in the field of accountancy. (Organizer)

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

Auditor

A

An individual who conducts an objective appraisal of accounting processes and data within an organization. (Verifier)

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

Bookkeeper

A

An individual who documents an organization’s monetary transactions. (Data entry)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Controller

A

An individual within an organization accountable for all aspects of financial reporting and accounting. (Editor)

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

Financial Accounting

A

A branch of accounting focused on external reporting of financial status to provide information to decision makers and interested parties.

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

Investor

A

An individual who has dedicated capital to a company with an expectation of a return on their investment.

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

Managerial Accounting

A

A branch of accounting focused on internal reporting to assist internal management with decisions, structure and goals.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Shareholder

A

An individual or organization that legally owns one or more shares in a company.

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

Corporation (Inc)

A

A type of company that exists as a separate unit from owners and shareholders, thereby protecting each individual from liability that exceeds the original investment.

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

Limited Liability Company (LLC)

A

A type of company where owners are not held personally responsible for the organization’s liabilities.

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

Limited Liability Partnership (LLP)

A

A type of company where only one of the partners is liable for the amount invested in the organization and is not accountable for the behavior of the other partner(s).

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

Non-Profit

A

An organization that reinvests profit into the goals of the company instead of distributing to owners and shareholders.

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

Private Corporation (PC)

A

A type of company whose shares are not purchased or traded publicly.

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

Sole Proprietorship

A

A type of company that is owned by a single individual, and where the individual and the business are legally treated as the same.

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

Account

A

A record that provides information about a given asset, liability, equity, revenue or expense.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Assets
Physical or non-physical resources owned by an organization that have economic value.
26
Equity
The remaining value once liabilities are subtracted from assets.
27
Expenses
Costs associated with operating or maintaining a business.
28
Liabilities
Debts and other financial responsibilities of an organization.
29
Permanent Accounts
Accounts whose balances carry over from one accounting period to the next accounting period.
30
Revenue
Earnings from interest or from the sale of goods or services.
31
Temporary Accounts
Accounts whose balances are closed at the end of an accounting period and reopened at the beginning of the next period.
32
Accounting Cycle
A series of steps followed when processing and reporting accounting information.
33
Credit
Entry made on the right side of an account.
34
Debit
Entry made on the left side of an account. a debit is an entry that increases assets or decreases liabilities. It's recorded on the left side of an account ledger. What debits record? Cash received, Inventory purchased, Expenses incurred, Decreases in liabilities, and Decreases in equity. a double-entry system of bookkeeping, where each debit has a corresponding credit entry Дебетовать, приходовать, заприходовать 🔴⬅️ Debit/loss, negative earnings, marked with red.
35
Accounting Equation
Assets = Liabilities + Owner's Equity
36
Natural Balance
Expected type of balance for a specific account classification.
37
General Journal
Initial documentation of a financial transaction as it originates.
38
General Ledger
Aggregates all accounting records within an organization in preparation for financial statements.
39
Financial Statements
Reports providing financial information about a business at a given time.
40
Income statement
A financial statement that provides information about the revenue, expenses, and net profit or loss of a business for a given time period.
41
Statement of Changes in Owner's Equity
A financial statement that provides information about changes to the equity of a business for a given time period.
42
Trial Balance
A list of the debit and credit balances of all of the general ledger accounts at a given time.
43
Adjusting Entry
An entry that is made at the end of an accounting period to report any unrecognized income or expenses for that period.
44
Closing Entry
An entry made at the end of an accounting period that is used to close out a temporary account.
45
Drawing Account
An account that keeps a record of money taken out of the business by its owner or owners.
46
Expenses
Costs associated with operating or maintaining a company.
47
Revenue
Earnings from interest or from the sale of goods or services.
48
Temporary Accounts
Accounts whose balances are closed at the end of an accounting period and reopened at the beginning of the next period.
49
Expenses
Costs associated with operating or maintaining a company.
50
Assets
Physical or non-physical resources owned by an organization that have economic value.
51
Balance Sheet
A financial statement that provides information about the assets, liabilities and equity of a business at a given time. (BUSINESS POSITION)
52
Equity
The remaining value once liabilities are subtracted from assets.
53
Financial Statements
Reports providing financial information about a business at a given time.
54
Liabilities
Debts and other financial responsibilities of an organization.
55
Cost of Goods Sold
The cost of inventory that a company has sold during a period.
56
Freight on board (FOB)
Freight terms that designate whether the buyer or seller pays the freight and when ownership is transferred to the buyer.
57
Inventory
The products that a company owns for resale to customers.
58
59
Purchase
The buying of inventory for resale to customers, or assets such as supplies or equipment, for cash or credit.
60
Sale
The selling of inventory by a merchandising business.
61
Subsidiary Ledgers
Groups of accounts with similar characteristics, such as sales or purchases, that track the transaction detail and account balances of each individual customer or vendor.
62
Periodic Inventory
A physical inventory count and calculation of cost of goods sold, done at the end of the period.
63
Perpetual Inventory
Computerized inventory system that keeps continuous detailed records of purchase and sale of inventory, and cost of goods sold.
64
Book Value
The cost of a depreciable asset less its accumulated depreciation.
65
Current Assets
Assets that are converted to cash, used up, or sold within one year.
66
Long Term Assets
Assets that will be used for longer than one year, such as plant assets and long term investments.
67
Personal Property
Tangible and intangible assets that are transferable among individual owners.
68
Real Property
Resources that have physical characteristics and are used in business operations.
69
Accumulated Depreciation
The total depreciation expense recorded to date in an asset’s life.
70
Contra Asset
An account with a credit balance that follows the asset account that it offsets on the balance sheet.
71
Depreciation
The process of cost allocation to expense, of a plant asset over its useful life.
72
Residual value
The estimated value of an asset at the end of its useful life.
73
Carrying Value
The book value of an asset, cost less accumulated depreciation.
74
Book Value
The cost of a depreciable asset less its accumulated depreciation.
75
Carrying Value
The book value of an asset, cost less accumulated depreciation.
76
Market Value
The price at which an asset could be bought or sold.
77
Purchase Allowance
A deduction given to a customer or business when merchandise is flawed or inferior and the purchaser chooses to keep the merchandise.
78
Purchase Return
Credit, if credit sale, or cash refund, if cash sale, given to a customer or business when merchandise purchased is flawed or inferior and the customer or business chooses to not keep the merchandise.
79
Sales Allowance
The seller’s recording of a deduction given to a customer or business when merchandise is flawed or inferior and the purchaser chooses to keep the merchandise.
80
Sales Return
The seller’s recording of a credit, if credit sale, or cash refund, if cash sale, given to a customer or business when merchandise purchased is flawed or inferior and the customer or business chooses to not keep the merchandise.
81
Contingent Liability
A potential liability that has the possibility to become an actual liability dependent on some future event.
82
Unearned Revenue
A liability account that records cash received before revenue is earned.
83
Horizontal Analysis
Evaluates percentage changes in financial statement items from one period to another.
84
Vertical Analysis
Evaluates financial statement items as a percent of a base amount.
85
Financial Ratio
Evaluates the relationship between specific items on a financial statement.
86
Financial Statements
Reports providing financial information about a business at a given time.
87
Statement of Cash Flows
A financial statement that reports cash receipts and cash payments for a specific period.

Accounting (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions