Acc Exam 1

Front 1

Accounting

Back 1

A means whereby a company's financial transactions are identified, recorded, and summarized and reported for the benefit of those who have an interest in the business.

Front 2

Business

Back 2

An organization created for hte purpose of providing goods or services to customers

Front 3

What are the 3 types of business?

Back 3

1. Manufacturer

2. Merchandiser

3. Service

Front 4

Wholesale and Retail fall under what type of business?

Back 4

Manufacturing???

No WAYS, Retail is defs under merchandising

Front 5

What is a merchandising business?

Back 5

A company involved in the purchase and sale of finished products.

Front 6

2 ways to finance a company

Back 6

Debt (liability)

Equity (OE)

Front 7

Unearned Revenue is what type of account?

Back 7

Liability

Front 8

All forms of "payable"s are debit or credit?

Back 8

Credit

Front 9

"payable" are located on which sheet?

Back 9

Balance Sheet

Front 10

Net income falls under which type of account?

Back 10

Owners' Equity

Front 11

Net income is debit or credit?

Back 11

Credit

Front 12

Revenues, debit or credit?

Back 12

credit

Front 13

Sales revenue is which type of account?

Back 13

Owners' Equity

Front 14

Sales Revenue is debit or credit?

Back 14

Credit

Front 15

Dividends appear on which sheet?

Back 15

Stmt of retained earnings

Front 16

What is debt financing?

Back 16

The acquiring of business assets through borrowing or the incurring of liabilities

Front 17

What do creditors provide?

Back 17

Debt financing

Front 18

Shares of ownership in a corporation is also referred to as

Back 18

stock

Front 19

Who are the primary users of financial accounting?

Back 19

current or prospective investors and creditors and gov regulatory agencies

Front 20

Required financial statements by GAAP

Back 20

Balance sheet

Income statement

Statement of Cash Flows

Front 21

Also referred to as a "stmt of financial position"

Back 21

balance sheet

Front 22

What is found on the income stmt?

Back 22

revenues-expenses = net income/loss AND an earnings per share

Front 23

Board of directors is a group of individuals elected by whom to do what?

Back 23

Elected by stockholders

Hire snr. management in company

Front 24

Assets

Back 24

Resources (property or rights) that are owned or controlled by an entity and provide probably future economic benefit to the entity.

Front 25

LIabilities

Back 25

Probably future obligations to pay assets (usually cash) or provide services to another entity.

Front 26

Accounts Payable is a long term or current liability?

Back 26

Current

Front 27

Notes payable, long term or current liability?

Back 27

Long term

Front 28

Capital contributions are the amount of a company's assets provided by owners in exchange for...

Back 28

Ownership rights in the company

Front 29

Alternative names for "net income"

Back 29

"profit"

Net profit

Earnings

Net earnings

Front 30

What random thing must be included in an income statement?

Back 30

Earnings per share

Front 31

Revenues

Back 31

the amount of anny assets (usually cash or accounts receivable) received from customers on the sale of goods or services. Includes any interest or dividends earned.

Front 32

Stmt of RE

Back 32

(or +?)Net income, -

Front 33

Equation for Earnings Per Share

Back 33

net income/ # of its shares of common stock outstanding.

Front 34

Historical Cost

Back 34

Original cost of acquiring an asset

Front 35

Fair market value of an asset

Back 35

The price an asset would bring if it were sold in an arm's-length transaction (2 self-seeking parties)

Front 36

Monetary measurement principle

Back 36

GAAP's requirement to reflect only those transactions that can be measured in dollars

Front 37

Journal entries record what?

Back 37

a company's transactions through debit and credit entries

Front 38

Interest revenue is the same as

Back 38

Interest income

Front 39

When costs of goods sold (an asset)--are actually sold they become what?

Back 39

an expense

Front 40

General ledger summarizes...

Back 40

Teh effects of a company's transactions, through the posting of journal entries.

Front 41

Trial Balance

Back 41

A listing of all general ledger accounts with their respective end-of-the-period debit or credit balances produced for the purpose of determining that the total of all debit balances equals the total of all credit balances.