Karteikarten
Accounting chapters 1-2
Karten in diesem Stapel (36)
- 1What are the 3 types of business?1. Sole Proprietorship
2. Partnership
3. Corporation - 2What are the 3 operating activities of a business?1. Operating
2. Investing
3. Financing - 3What are some examples of operating activities?1. Selling products
2. Receiving revenue
3. Purchasing raw materials - 4What are some examples of investing activities?1. Purchasing resources needed to operate
2. Buying PPE - 5What are some examples of financing activities?1. Taking out a loan
2. Issuing debt securities
3. Selling shares of stock - 6What is an income statement?Reports a comany's revenues, expenses, & net income or net loss over a specific period of time.
- 7Why are users interested in income statements?Because it provides users w/ info that helps them predict future net income.
- 8What are retained earnings?Net income used for the corporation
- 9What is a retained earnings statement?Shows the amounts and causes of change in retained earnings for a specific period of time.
- 10What is a balance sheet?Reports a users assets & claim to assets (liabilities & stockholder's equity).
- 11What is the basic accounting equation?Assets=liabilities+stockholder's equity
- 12What is a statement of cash flows?Provides info about the cash receipts and cash payments over a specific period of time.
- 13What are the 4 standard setting organizations?1. Security & exchange commission (SEC)
2. Financial Accounting Standards board (FASB)
3. International Accounting Standards board (IASB)
4. International Financial Reporting Standards - 14What is a annual report?Report prepared by management that presents financial info, including financial statements, a management discussion and analysis section, notes, and an independent auditor's report.
- 15Management discussion & analysisManagement's view on the company's ability to pay near term obligations, fund operations and expansion, and results of operations.
- 16Notes to financial statementsNotes that clarify financial statement info and provide additional detail.
- 17Auditor's reportReports and outside auditor's opinion as to the fairness of presentation of financial position and results of operations and their conformance w/ generally accepted accounting principles.
- 18Classified Balance sheetGroups similar assets & liabilities, using a number of standard classifications and sections.
- 19What is included in a classified balance sheet?1. Current assets
2. long term investments
3. PPE
4. intangible assets
5. Current liabilities
6. long term liabilities
7. stockholder's equity - 20Current assetsAssets that a company expects to convert to cash or use up within one year or operating cycle.
- 21Long term investments1. investments in stock and bonds that is held for more than 1 year.
2. long term assets that a company is not currently using in it's operating activities
3. long term notes receivable - 22PPEAssets/ long useful lives that are currently in use within the operating cycle.
- 23Intangible assetsAssets without physical substance
- 24Current LiabilitiesObligations that a company expects to pay within the next year or operating cycle.
- 25Long term liabilitiesObligations expected to pay after one year
- 26Stockholder's equityincludes
1. common stock
2. retained earnings - 27Ratio analysisRelationship among selected items of financial statement data
- 28Profitability RatiosMeasures the income or operating success of a company over a given period of time
- 29Liquidity ratiosMeasure short term ability of company to pay maturing obligations and to meet unexpected needs for cash
- 30Solvency ratosMeasure ability of company to survive over a long period of time
- 31Earnings per share1. Net income earned on each share of common stock
2. Net income-prefered dividends/ average common shares outstanding - 32Working capitalCurrent assets-current liabilities
- 33Current ratioCurrent assets/current liabilities
- 34Debt to assets ratioTotal liabilities/total assets
- 35Free cash flowNet cash provided by operating activities-capital expenditures- cash dividends
- 36Qualities of useful info1. Relevance
2. Predict value
3. Confirmatory value
4. Size
5. Complete
6. Neutral
7. Error free
Informationen
- Beschreibung
- Karteikarten am Accounting chapters 1-2, erstellt von Nolan Fontenot am 08/09/2015.
- Erstellt von
- Nolan Fontenot
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