What are the three basic activities of accounting that involve identifying economic events, recording them, and communicating information to interested users? _____ Evaluating, Summarizing, Reviewing Analyzing, Reporting, Auditing Identifying, Recording, Communicating Budgeting, Forecasting, Planning

Identifying, Recording, Communicating

What are the generally accepted and practiced standards in the U.S. for measuring and reporting economic events? _____ SEC: Securities and Exchange Commission IFRS: International Financial Reporting Standards GAAP: Generally Accepted Accounting Principles FASB: Financial Accounting Standards Board

GAAP: Generally Accepted Accounting Principles

What are the international accounting standards known as? _____ FASB: Financial Accounting Standards Board GAAP: Generally Accepted Accounting Principles IASB: International Accounting Standards Board IFRS: International Financial Reporting Standards

IFRS: International Financial Reporting Standards

What is the primary standard setter in the U.S. that makes the rules for accounting? _____ IASB: International Accounting Standards Board SEC: Securities and Exchange Commission FASB: Financial Accounting Standards Board GAAP: Generally Accepted Accounting Principles

FASB: Financial Accounting Standards Board

Which U.S. governmental agency oversees the U.S. markets and standard setters, enforcing the rules? _____ IASB: International Accounting Standards Board FASB: Financial Accounting Standards Board GAAP: Generally Accepted Accounting Principles SEC: Securities and Exchange Commission

SEC: Securities and Exchange Commission

What is the international standard setter for accounting known as? _____ GAAP: Generally Accepted Accounting Principles IASB: International Accounting Standards Board SEC: Securities and Exchange Commission FASB: Financial Accounting Standards Board

IASB: International Accounting Standards Board

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Finance - Personal Finance

georgepetenjk Created by 10 mon ago

Cards in this deck(100)

Who are the trusted business advisors who understand the 'language of business' and add value to every organization? They are involved in key decisions within a business. _____

What are the three basic activities of accounting that involve identifying economic events, recording them, and communicating information to interested users? _____

Who uses accounting data? Internal users like managers plan, organize, and run a business, while external users such as investors, creditors, and regulators seek financial information. _____

What is the objective of Financial Accounting, which provides financial information about an entity useful to present and potential investors, creditors, and other users? _____

What are the generally accepted and practiced standards in the U.S. for measuring and reporting economic events? _____

What are the international accounting standards known as? _____

What is the primary standard setter in the U.S. that makes the rules for accounting? _____

Which U.S. governmental agency oversees the U.S. markets and standard setters, enforcing the rules? _____

What is the international standard setter for accounting known as? _____

What is the term for measuring financial elements based on their cost, which is more objective and preferred by GAAP? _____

What is the term for measuring financial elements based on what they are worth in the market, which changes constantly and is relevant? _____

What is the accounting equation that represents the relationship between assets, liabilities, and equity? _____

What are the resources a business owns or controls, which are expected to provide future benefits? _____

What are the amounts owed to creditors, representing debts of a business? _____

What are the claims to owners, representing the residual interest in the assets of the entity after deducting liabilities? _____

Which accounts include cash, accounts receivable, inventory, supplies, and other resources owned by a business? _____

What is an example of an asset, where a purchase of product results in inventory that can be sold in the future at a profit, generating cash? _____

Which accounts include obligations such as accounts payable, accrued liabilities, and taxes payable? _____

What is an example of a liability, where a promise to pay a supplier for inventory purchased on credit creates an accounts payable? _____

What are the two main elements of stockholders' equity, including common stock and retained earnings? _____

Which accounts include contributed capital such as common stock and earned capital like retained earnings? _____

What is an example of stockholders' equity, where cash received from an investor in exchange for an ownership share creates common stock? _____

What results from the sale of goods or services, representing the selling price and contributing to retained earnings? _____

What are the costs necessary to generate revenue, often referred to as the cost of doing business? _____

What is the distribution of earned capital to investors, often referred to as distribution to owners? _____

Which accounts include service revenue, sale revenue, rent revenue, and interest revenue? _____

What is an example of equity (revenue), where cash received from a customer related to selling an inventory item creates sales revenue? _____

Which accounts include costs of goods sold, advertising expense, and depreciation expense? _____

Is every business event a transaction that should be recorded in the accounting system? _____

What do accounting information systems rely on, which include only events capable of being measured in financial terms? _____

What are economic events occurring between the company and an outside entity, such as purchasing materials from suppliers? _____

What are economic events occurring completely within a company, such as using purchased materials in the production process? _____

What is the journal entry for a transaction where stockholders invest $5,000 cash into the ACCT 200 pizza shop? _____

What is the journal entry for a transaction where ACCT 200 pizza buys a $900 pizza oven with cash? _____

What is the journal entry for a transaction where ACCT 200 pizza purchases $200 of cleaning supplies from a supplier on credit? _____

What are accounts that record increases and decreases in an asset, liability, or equity item, and are identified by a chart of accounts? _____

What are the four important financial statements that include the income statement, retained earnings statement, balance sheet, and statement of cash flows? _____

What financial statement shows profitability from operations over a period of time, resulting in Net Income or Net Loss? _____

What is the equation for net income, which includes revenues, gains, expenses, and losses? _____

What financial statement shows changes in retained earnings over a period of time? _____

What is the equation for retained earnings, which includes net income and dividends? _____

What financial statement shows a company's resources (assets) and claims to resources (liabilities and stockholders' equity) on a specific date? _____

What term describes how close assets are to being turned into cash or liabilities are to being paid in cash? _____

What financial statement provides information about the cash receipts and cash payments of a company for a period of time? _____

What are the changes in cash flow that include operating, investing, and financing activities? _____

What is the recording process that involves analyzing transactions, entering them in the general journal, and transferring information to general ledger accounts? _____

What is the term for the left side of an account, often associated with increases in assets and expenses? _____

What is the term for the right side of an account, often associated with increases in liabilities and equity? _____

In every transaction, debit must _____ credits to maintain the accounting equation balance.

What is the system that requires at least two account entries for every transaction, keeping the balance sheet in balance? _____

Under which category do revenues and expenses fall, affecting net income and equity? _____

When does retained earnings increase, typically occurring when a business provides a good or service and receives some benefit in return? _____

When does retained earnings decrease, typically occurring when a business has costs in order to generate revenues? _____

What are dividends, which are a distribution of earned capital that directly reduce retained earnings? _____

How does the accounting record transactions, which are listed in chronological order and include account titles, amounts, dates, references, and explanations? _____

What is the general ledger, which lists all accounts maintained by a company and shows all transactions affecting a single account? _____

What is the process of transferring general journal entries to general ledger accounts known as? _____

What are the points on the fraud triangle, which include opportunity, financial pressure, and rationalization? _____

What is the trial balance, which is a list of accounts and their balances at a given point in time, proving that debits equal credits after posting? _____

What is the economic life of a business, which is divided into artificial time periods for periodic feedback and financial statement preparation? _____

What is the accrual basis of accounting, which recognizes revenue and expenses in the period they occur, regardless of cash changes? _____

What are product expenses, which are easily matched to the associated revenues? _____

What are period expenses, which are difficult to match with specific revenues and are instead matched to the time period incurred? _____

What are adjusting entries, which ensure that the revenue and expense recognition principles are followed and affect both balance sheet and income statement accounts? _____

What are deferrals, where cash is received or paid first, and revenues or expenses are recognized later at period end? _____

What are deferred revenues, where cash is received before services are performed, creating an unearned revenue liability? _____

What are deferred expenses, where expenses are paid in cash before they are used or consumed over time? _____

What is the process of allocating the cost of an asset to expense over its useful life, known as? _____

What is the Net Book Value (NBV), which is the difference between the historical cost of the asset and its accumulated depreciation balance? _____

What are accruals, where revenue or expense is recognized first at period end, then cash is received or paid later? _____

What are accrued revenues, where revenue is recorded for services performed but not yet collected in cash? _____

What are accrued expenses, where expenses are recorded but not yet paid in cash? _____

What are the three factors that determine the amount of annual interest paid or received, including face value, interest rate, and length of time? _____

What is the adjusted trial balance, which is usually completed after adjusting entries are recorded and posted? _____

From what are financial statements prepared, which is completed after adjusting entries are recorded and posted? _____

How do I know when to record an adjusting entry, considering unrecorded expenses, revenues, and depreciation? _____

What are taxes, which are government-mandated fees that finance government activities and are often adjusted for the effects of taxes? _____

What are operating cash flows, which include cash receipts from revenues and cash disbursements for expenses? _____

What are investing activities, which include purchasing or disposing of long-term assets and lending money and collecting loans? _____

What are financing activities, which include issuing and repaying debt and stock transactions with owners? _____

What are closing entries, which transfer balances from temporary accounts to permanent accounts at the end of the accounting cycle? _____

What are the two options for closing income statement temporary accounts, either to income summary and then to retained earnings or straight to retained earnings? _____

What are receivables, which are amounts due from individuals and companies expected to be collected in cash? _____

What are accounts receivables, which are amounts customers owe on account from sales of goods and services? _____

What are notes receivable, which are long-term formal promises to pay a stated amount plus interest? _____

When do service organizations recognize receivables, typically recorded when services are performed? _____

When do merchandisers recognize receivables, typically recorded at the point of sale? _____

What is the periodicity assumption, which divides business life into artificial time periods for financial reporting? _____

Why do we need adjusting entries, considering some events are not recorded daily, some costs expire with time, and some items are unrecorded? _____

What are common examples of deferred revenues, such as receiving rent, subscriptions, and cash for future services? _____

What are common examples of deferred expenses, such as prepaid rent, use of supplies, and depreciation of long-term assets? _____

What is the adjusting entry for deferred revenues, where liabilities decrease and equity increases? _____

What is the adjusting entry for deferred expenses, where assets decrease and equity decreases? _____

What is the Net Book Value (NBV) equation, which is the cost minus accumulated depreciation? _____

What accounts are always hit when dealing with depreciation, including accumulated depreciation and depreciation expense? _____

What are common examples of accrued revenues, such as service provided before receiving payment and interest earned but not yet received? _____

What is the adjusting entry for accrued revenues, where assets increase and equity increases? _____

What is the adjusting entry for accrued expenses, where liabilities increase and equity decreases? _____

What are common examples of accrued expenses, such as wage costs incurred before payment and interest costs incurred before payment? _____

Where are adjusting entries entered before being posted in the general ledger, often requiring detailed explanations? _____

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