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Accounting 1 > Test 1 > Flashcards

Test 1 Flashcards

1
Q

What is the Accounting Equation?

A

Assets=Liabilities+Stockholder Equity

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2
Q

What falls under Stockholder Equity?

A

Common Stock and Retained Earnings

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3
Q

What falls under Retained Earnings?

A

+Revenues

  • Expenses
  • Dividends
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4
Q

What goes on a balance sheet?

A

Assets
Dividends
Expenses

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5
Q

What goes on an income statement

A

1) Expenses
2) Liabilities- In order of maturity
3) Stockholder Equity-contributed capital-retained earnings
4) Revenues

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6
Q

What are some Debits

A

Assets
Dividends
Expenses

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7
Q

What are some Credits

A

Liabilities
Stockholder Equity
Revenues

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8
Q

Debits go on which side?

A

Left side

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9
Q

Credits go on which side?

A

Right side

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10
Q

Which comes first, Debits or Credits on an entry?

A

Debits first, Credits second

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11
Q

What is called when cash is recognized prior to revenue being recognized?

A

Unearned Revenue

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12
Q

What is it called when cash is recognized after revenue is recognized?

A

Accounts Receivable

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13
Q

What is called when cash is recognized when revenue is recognized?

A

Cash

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14
Q

What is a prepaid expense?

A

Allocating previously recorded assets to expense

– i.e., expensing an item that you paid early.

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15
Q

What is a Unearned Revenue?

A

Allocating previously recorded unearned revenue to earned revenue
– i.e., recognizing as income a “sale” for which you had been paid early

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16
Q

What is an Accrued Expense?

A

Recording operating expenses that have not yet been paid or recorded
– you have incurred the expense, but YOU still owe the money

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17
Q

Accrued Revenues

A

Recording revenue that has been earned, but not yet been received or recorded – you have earned the revenue, but YOU are still OWED the money

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18
Q

Prepare statements in following order:

A

Income Statement
Statement of Stockholders’ Equity
Balance Sheet
Statement of Cash Flows

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19
Q

What happens to temporary accounts?

A

They are zeroed out at the end of an accounting period

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20
Q

What happens to the balance of temporary accounts?

A

They are transferred to retained earnings

21
Q

What happens to dividends?

A

They are closed to retained earnings

22
Q

What goes on a balance sheet?

A

Assets, Liabilities, Stockholder equity

23
Q

What is an income statement

A

The financial results of a given time period

24
Q

When does net income occur?

A

When revenues are greater than liabilities

25
Q

What is a statement of stockholders equity?

A

Reports the events that cause increase or decrease in stockholder equity

26
Q

Retained Earnings

A

Increase with net income increasing and vice versa

27
Q

statement of cash flows

A

reports a business’s cash inflows and cash outflows during

a given period of time

28
Q

Give the order of financial statements

A

1) Income Statement 2) Statement of Stockholders Equity 3)Balance Sheet 4) Statement of Cash Flows

29
Q

What gets decreased when a divedend is issued?

A

Cash

30
Q

Typical Assets

A 
Cash
Accounts Receivable
Office Supplies
Prepaid Rent
Office Equipment
Accumulated Depreciation—Office Equipment
31
Q

Typical Liabilities

A 
Accounts Payable
Interest Payable
Wages Payable
Unearned Revenue
Notes Payable
32
Q

Typical Equity

A

Common Stock
Retained Earnings
Dividends

33
Q

Typical Revenues

A

Anytime a company is payed for a job

34
Q

Typical Expenses

A 
Supplies Expense
Wage Expense
Rent Expense
Depreciation Expense—Office Equipment
Interest Expenses
35
Q

What is a liability

A

obligations or debts that a business must pay in cash or in goods and services at some future time as a consequence of past transactions or events

36
Q

What is an asset

A

the economic resources of a business that can be expressed in monetary terms. Assets take many forms.

37
Q

Is ACCT Receivable an Asset?

A

Yes

38
Q

What is Accounts Payable?

A

A liability

39
Q

What is debt financing

A

Financing from an outside source like a bank

40
Q

What is Equity Financing

A

financing via stockholders

41
Q

What is the Sarbanes-Oxley Act

A

2002 regulation that forces companies to do things so they dont cheat

42
Q

What are expenses

A

are decreases in a company’s resources from generating revenue. Expenses are generally measured by the value of the assets used up or exchanged as a result of a businesses operating expenses

43
Q

What is contributed capital

A

a measure of the capital contributed by the stockholders of a company when they purchase ownership shares in the company

44
Q

Earned capital

A

a measure of the capital that is earned
by the company, reinvested in the business, and not distributed to its stockholders—that
is, its retained earnings

45
Q

Retained earnings

A

are increased when operations produce net income and decreased when operations produce a net loss.

46
Q

What is an annual report called?

A

10-K

47
Q

General Ledger

A

Holds all transactions

48
Q

Accrual

A

increasing expenses and increasing revenues

49
Q

Contra Account

A

used to record reductions in, or off-

sets against, a controlling account

Accounting 1 (12 decks)

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