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22 Cards in this Set
- Front
- Back
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Purpose of Accounting
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To provide useful information to users outside of the firm.
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Four Types of Financial standard statements
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Income, Retained Earnings, Balance Sheet, Cash Flows
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Net Income
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Revenue-Expenses
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Classify This as Asset, Liability, Expense, Revenue: Cash
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Asset
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Classify This as Asset, Liability, Expense, Revenue: Accounts Payable
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Liability
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Classify This as Asset, Liability, Expense, Revenue: Inventory
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Asset
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Classify This as Asset, Liability, Expense, Revenue: Accounts Recievable
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Asset
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Classify This as Asset, Liability, Expense, Revenue: Supplies
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Asset
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Classify This as Asset, Liability, Expense, Revenue: Equipment
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Asset
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Classify This as Asset, Liability, Expense, Revenue: Salaries payable
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Liability
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Classify This as Asset, Liability, Expense, Revenue: Service Revenue
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Revenue
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Classify This as Asset, Liability, Expense, Revenue: Rent Expense
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Expense
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Classify This as Asset, Liability, Expense, Revenue: Common Stock
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Owner's Equity/Stockholders' Equity
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Statement of Retained Earnings shows what
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Beginning balance of retained earnings, with net income added into it and dividends subtracted
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Income Statement shows what
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All revenue and all expenses, and then net income
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Balance sheet shows what
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assets, liabilities, owners' equity.
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Within stockholders' equity, there are
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common stock and retained earnings
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Three main types of businesses
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Sole Prop., partnership, corporation
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Net income belongs in what account on the balance sheet?
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Retained earnings (Within owners' equity)
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Accural basis of accounting
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We recognize revenue/expenses when earned/incurred
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GAAP
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Generally Accepted Accounting Princples
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What act established the SEC
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Congress passed the Securities Act of 1933, which established the SEC, but they forgot to appoint people. Congress then passed the securities act of 1934 that actually established the SEC
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