38705364
Description
Flashcards by Tayler Shellhase, updated more than 1 year ago
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Created by Tayler Shellhase
about 1 year ago
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| Question | Answer |
| Chart of Accounts | List of all accounts used to accumulate information about assets, liabilities, owners' equity, revenues, and expenses. |
| Transactions | During the accounting period, record transactions with customers, vendors, employees, and owners |
| Trial Balance | Also an unadjusted trial balance because it is prepared before adjustments. Lists each account and the account balance at the end of the accoutning period |
| Adjustments | Any necessary adjustments are made at the end of the accounting period before preparing financial statements |
| Adjusted Trial Balance | Done to verify that the accounting system still balances. |
| Financial Reports | Prepares for external users. (Profit and Loss, Balance Sheet, and Statement of Cash Flows) |
| Profit and Loss Statement | Lists sales (revenues) and expenses for a specified accounting period. Profit or net income can be measured in two ways ( Cash basis or accrual basis ) |
| Cash Basis | Sale is recorded when cash is collected from the customer. Expenses are recorded when cash is paid |
| Accrual Basis | Sales are recorded when the food or service is provided regardless of when the cash is collected from the customer. Expenses are recorded when the cost is incurred or expires, even if the expense has not been paid |
| Cash Flows From Operating Activities | Cash inflows and outlfows related to the company's primary business, such as sales and operating expenses |
| Cash Flows From Investing Activities | Cash inflows and outlfows related to acquisition and disposal of long-term assets |
| Cash Flows From Financing Activities | Cash inflows and outflows to and from investors and creditors (except for interest payments) |
| Who Owes You Reports | Accounts Receivable Aging and Open Invoices (Used to track amounts that customers owe your business) |
| Sales and Customer Reports | Income by Customer and Sales by Product/Service ( provide detailed information about cutomers and sales transactions ) |
| What You Owe Reports | Accounts Payable Aging and Unpaid Bills ( track amounts that your business owes others ) |
| Expense and Vendors Reports | Open Purchase Orders and Purchases by Product/Service ( provide detailed information about vendors and expenses transactions ) |
| For My Accountant Reports | Trial Balance, Journal, and General Ledger ( include reports used by an accountant in completing various tasks ) |
| Tags | Electronis labels |
| Financial Reports a Business Prepares | 1.) Financial Statements 2.) Tax Forms 3.) Management Reports |
| Financial Statements | Profit and Loss, Balance Sheet, and Statement of Cash Flows |
| Profit and Loss | Lists income and expenses, summarizing the income a company has earned and the expenses incurred to earn the income |
| Balance Sheet | Lists assets, liabilities, and owners' equity, summarizing what a company owns and owes on a particular date |
| Statement of Cash Flows | Lists cash flows from operating, investing, and financiing activities of a business |
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