Jeopardy Review Exam 2

Master Of Business Administration 500 with Swaddling at Capital University

About this deck

By: Chris Mehaffie
Created: 2012-03-10
Size: 49 flashcards
Views: 13

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Financial Accounting

It’s the branch of accounting which produces GAAP financial statements.

Internal Auditing

This is the accounting function in which employees of the company check the accounting records for errors.

Managerial Accounting

It’s the branch of accounting which helps managers in making specific decisions.

Tax Accounting

This type of accounting takes care of completing the Form 1120.

Independent, or External, Auditing

This is what CPAs primarily do

Owners’Equity

This is what’s leftover when total liabilities are subtracted from total assets.

CurrentAssets

This is the category of assets which is expected to turn into cash within the next 12 months.

Liabilities

Claims on a firm’s resources from non-owners are called this.

Capital Stock and Retained Earnings

They are the two primary components of Owners’ Equity shown in the balance sheet of a corporation.

GAAP

Generally Accepted Accounting Principles

General Ledger

This is the name of the primary database in an accounting system which contains the running totals for all of the accounts.

Credit

This is what accountants call the side of the account on which revenues are normally found.

General Journal

This is the Book of Original Entry that accountants can use to record irregular and non-recurring types of entries.

Common Size Financial Statements?

The type of financial statements that are stated in %s instead of $s is called this.

“earned” and“collectible”

These are the two requirements for recognizing revenue in the current period.

Gross Marginor Gross Profit

Accountants usually call the subtotal of Revenue and Cost of Goods Sold this.

Depreciation

This is what accountants call the adjusting entry which allocates some of the cost of tangible long-term assets to expense.

LIFO

In periods of rising costs, this is the inventory costing method which minimizes taxable income.

Amortization

It’s the term that accountants use for allocating the cost of intangible assets to expense(instead of depreciation).

Statement of Income

The financialstatement which reports the firm’s accounting profit is called this.

Statement of Cash Flows

It’s the only one of the three basic financial statements where you can find the amount of dividends paid.

Balance Sheet

This is the financial statement in which the balance of Accumulated Depreciation is shown.

Statement of Income

It’s the financial statement where Bad Debt Expense is subtracted from profits.

Statementof Income and the Statement of Cash Flows

The amount of Depreciation Expense for the period can be found in both of these two basic financial statements.

Debt-to-Equity Ratio

Total Debt / Total Equity

Current Ratio

The relationship of all short-term assets and short-term liabilities is shown by this ratio.

Price-Earnings (P/E) ratio

A comparison of the price of a share of stock with the profitability of the company is provided by this ratio.

Return on Equity (ROE)

The DuPont Formula breaks out the three underlying components of this financial statement ratio.

Profitability, Assets Utilization, Capital Utilization, and/or Owners’ Value?

These are two of the four questions asked by readers of financial statements which are addressed byratio analysis.

Cash

The Statement of CashFlows reports the overall net change for the period in this balance sheet account.

Operating Cash Flows

This is the section ofthe Statement of Cash Flows which shows what took place in the normal course ofrunning the business.

Investing Cash Flows

The section of the Statement of Cash Flows which shows the additions and disposals of long-term assets is this.

Accrued Depreciation

Depreciation is added back to Net Income in this section of the Statement of Cash Flows.

Financing Cash Flows

This is the section of the Statement of Cash Flows in which the financial capital added to, or withdrawn from, the business is shown.

Historical Cost Concept

This accounting concept states that transactions will be recorded at their original cost, and usually not be adjusted to a market value.

Conservatism Concept

It’s the accounting concept that represents accountants’ preference to record expenses quickly but revenue slowly.

Accrual Concept

The accounting concept which requires transactions to be recorded even when cash hasn’t yet been exchanged is called this.

Matching Concept

It is the accounting concept that requires expenses to be recorded in the same period as the revenue which they generate.

Realization Concept

This is the accounting concept which consists of several specific rules that determine whether an entry should be made to the balance sheet or the income statement.

The Segmentation, Targeting, and Positioning Process

Step 1: Strategy of objectives

Step 2: Describe Segments

Step 3: Evaluate segment attractiveness

Step 4: Select Target Market

Step 5: Identify and Develop Positioning Strategy

Price Elasticity of Demand

This measure tells us which of the two variables explained by the Law of Demand moves more quickly than the other.

Law of Diminishing Returns

Graphs of average cost curves for increasing output levels are U-shaped due to this phenomenon.

Excess Costs and Unhappy Customers

These are the counter-balancing management risks inherent in the “capacity decision.”

Accounts Receivable

This is the usual name for the balance sheet account in which amounts due from customers are reported.

Accounts Payable

The amounts currently owed to a company’s regular trade creditors are in this account.

Allowance for Bad Debts

It’s the usual name for the contra-asset account which accountants use to allow for uncollectible amounts before they know which specific ones are bad.

Accumulated Depreciation

When some of the original cost of a long-term asset is allocated to expense, this is the usual name of the account used to keep track of the total amount written off since the asset was purchased.

Unearned Revenue

The balance sheet account in which accountants put amounts collected from customers before they are earned.

"Market Capitalization” and “Owners’ Equity”

The measure calledMarket Value Added (MVA) compares these two amounts.

About this deck

By: Chris Mehaffie
Created: 2012-03-10
Size: 49 flashcards
Views: 13

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.”
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