Accounting Exam 1

Accounting 2001 with Abdelsayed at University of Connecticut

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By: ashley peterkin
Created: 2011-06-09
Size: 35 flashcards
Views: 68

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GAAP

Generally Accepted Accounting Principles

- all standards, principles, runes, and methods that accountants use in recording and presenting financial information on the Financial Statement

Components of Accounting

Input

Processing

Output = F/S

Accounting Entity

any data that can be

Gathered, Recorded, Summarized, Communicated

for decision making processes

SEC

Securities Exchange Commission

-pays attention to 10K (annual examination) and 10Q (quarterly review)

-responsible for administering laws and establish standards

FASB

Financial Accounting Standards Board

- creates the las and rules for financial account and reporting area.

Accounting Equation

Assets = Liabilities + Stock Holders Equity

A Balance sheet consists of ______, _______, and ________.

assets

liabilities

stock holders equity

Asset

items of value which will provide future economic benefit

Cost Principle

when an asset is purchased, it should be recored at the price paid for it

Going Concern Concept

if there is no contrary an entity will continue operating infinitely

Objective principle

all accounting information must come from an actual source

Stable Dollar Concept

the value of $ will always be constant

Liabilities

debts because of assets that the non owners owe

the term "payable" !

Stock holders / owner's equity

debts because of assets for the owners

broken down into

1 common stock

2 retained earnings

Income statements consist of ________ and ________.

Revenues and Expenses

REVs

Revenues

-increases in assets because of company operations

NOTE: revenues ultimately increase R/E

EXPs

Expenses

-decreases in assets because of company operations

NOTE : expenses ultimately decrease R/E

DIVs

Dividend

-cash distributions of the corporation's profits to stockholders

NOTE: ultimately decrease R/E

Statement of Stockholder's Equity / Owner's Equity consists of ________?

Dividends.

What is the order of the statement of Cash flow?

Ohhhh, if.....

Operating

Investing

Financial

Cash flow from Operating activities

activities which relate to the entity's operations

Cash flow from investing activities

investing in such things as machinery and equipment and buildings

Cash flow from financing activities

activities related to raising capital to finance the entity's operation

Net Cash Provided

more inflows than outflows

Net Cash USED

more outflows than inflows

What order are Current Assets recorded on a B/S?

Cash

Market Securities

Receivables

Inventory

Prepaid Supplies

Total Asset Turnover Formula

TAT = Total Revenues / Average Total Assets

NOTE: as TAT increases operating efficiency increases

net income as a percent of total revenues

the higher the more favorable

liabilities as a percent of total assets

the lower the more favorable

account

a recording device used to record and store accounting information pertaining to various Financial Statement elements

journalizing

recording the transactions first in a book called the general journal (GJ)

posting

recording the information from a GJ to a general Ledger

About this deck

By: ashley peterkin
Created: 2011-06-09
Size: 35 flashcards
Views: 68

About StudyBlue

“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis