Brainscape's Knowledge GenomeTM

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


See full index

mgmt 1a > vocab > Flashcards

vocab Flashcards

1
Q

Basic accounting equation?

A

Assets = Liabilities + Equity

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

ADE-LER?

A

Debits increase: assets, drawings, expense
Credits increase: liabilities, equity, revenue

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

T/F: Financial accounting affects internal decision makers

A

False

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

Which act established the 10-K, 10-Q, and 8-K?

A

Securities Exchange Act of 1934

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

Which act was created due to fraud?

A

Sarbanes-Oxley Act of 2002

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

What is the name of the database of SEC filings?

A

EDGAR

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

What does GAAP stand for?

A

Generally Accepted Accounting Principles

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

What is the accounting cycle?

A

Transaction => Documentation => Journal Entry => Ledger => Trial Balance => Adjustments => Adjusted Trial Balance => Financial Statements

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

What are the 3 properties of contra accounts?

A
  1. They’re always attached to another account
  2. They have the opposite balance of the normal account balance
  3. They reduce the account to which they are attached
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which financial statements are position statements?

A

Balance sheet

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

What are the 5 financial statements?

A

Income Statement, Statement of Owner’ s Equity, Balance Sheet, Statement of Cash Flows, Notes

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

What is the accrual method of accounting?

A

Recognize revenue when it is earned, recognize expense when incurred through matching to the period of benefits, used by corporations

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

What is the different between indirect and direct statement of cash flows?

A

Indirect method starts with net income

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

What is an asset?

A

A resource to provide future economic benefit

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

Which are non-current assets?

A

PPE, Intangible assets

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

Which are non-current liabilities?

A

Bonds payable, Loans payable (bank loans)

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

The accrual method of accounting records accruals and… ?

A

Deferrals

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

Define accrual.

A

Accrual: income is earned before money is received and expense is incurred before money is paid
- impacts Income Statement now, impacts cash later

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

Define deferral.

A

Deferral: income is earned after money is received and expense is incurred after money is paid
- impacts cash now, impacts Income Statement later

20
Q

Which are temporary accounts?

A

Revenue, expense, drawings, Sales Return and Allowances, Sales Discounts, COGS

21
Q

How do you record an adjusting journal entry for prepaid advertising?

A

Dr. Adv Exp
Cr. Prepaid Adv
Debit the expense because cash went out
Credit prepaid advertising to decrease asset

22
Q

How do you record an adjusting journal entry for unearned rent or rent paid in advance (we’re the landlord!)

A

Dr. Unearned Rent
Cr. Rev
Debit liability to decrease liability
Credit revenue because we earned revenue

23
Q

How do you record an adjusting journal entry for supplies at year end?

A

Dr. Supplies Exp
Cr. Supplies
Debit expense because cash went out
Credit asset of supplies to decrease it

24
Q

How do you record an adjusting journal entry for salaries at year end?

A

Dr. Sal Exp
Cr. Sal Payable
Debit expense because cash went out
Credit liability of salaries payable to increase liability because we still need to pay the salary

25
Q

How do you record an adjusting journal entry for equipment depreciation?

A

Dr. Dep Exp
Cr. Acc. Dep
We used up $xxx amount of the equipment based on its useful life
Credit Acc. Dep to decrease Equipment account = contra account

26
Q

What should you include on the Balance Sheet when recording accumulated depreciation?

A

Book Value

27
Q

Closing Journal Entries: Step 1

A

Close out entire revenue account to income summary
Dr. Rev
Cr. Income Summary

28
Q

Closing Journal Entries: Step 2

A

Close out entire expense account to income summary
Dr. Income Summary
Cr. Sal Exp
Cr. Rent Exp

29
Q

Closing Journal Entries: Step 3

A

Close out Income Summary to capital
Dr. Income Summary
Cr. Capital

30
Q

Closing Journal Entries: Step 4

A

Close out drawings
Dr. Cap
Cr. Drawing

31
Q

Equity = ?

A

Beg Bal + Cont Cap + Net Income - Drawings

32
Q

What is the historical cost accounting assumption?

A

Acquisition of goods, services, and other resources are entered into accounting records at their exchange price (the price you pay) because it is objective and verifiable

33
Q

What is materiality?

A

An item is material if it is likely to influence the decision of a reasonably prudent investor or creditor

34
Q

What is the conservatism accounting constraint?

A

When alternative account valuations are equally possible, you should select the one that is least likely to overstate assets and income and understate liabilities and expenses

35
Q

What are the objectives of internal controls?

A

Accurate and reliable financial statements, safeguarding of assets

36
Q

What are the segregation of duties?

A

Authorization, Recording, Custody/Safeguarding, Comparison

37
Q

What are reconciling items?

A

Items we included/deducted that the bank did not OR items the bank included/deducted that we did not

38
Q

Does the bank side or the books side require journal entries?

A

Books side

39
Q

How do you record non-sufficient funds in a reconciling journal entry?

A

Dr. A/R
Cr. Cash
Reverse original entry for check

40
Q

How do you record notes receivable and interest in a reconciling journal entry?

A

Dr. Cash
Cr. N/R
Cr. Interest Income
Cash increases

41
Q

How do you record a service charge for a reconciling journal entry?

A

Dr. Fee Exp
Cr. Cash
Cash went out

42
Q

How do you record the error between the balance per bank and balance per books?

A

Dr. Cash
Cr. Cash Short/Over

43
Q

If cash is over when replenishing petty cash…. ?

A

Credit Cash Short/Over

44
Q

If cash is short when replenishing petty cash… ?

A

Debit Cash Short/Over

45
Q

What should balance in a trial balance?

A

Adjustments, Adjusted Trial Balance, Income Statement after adding Net Income, Balance Sheet after adding Net Income

mgmt 1a (1 decks)

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