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35 Cards in this Set
- Front
- Back
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Which of the following concepts relates to separating the reporting of business and personal economic transactions? |
Business Entity Concept |
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Assets are financed by the owner and/or creditors. True or false? |
True |
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Owner's investments, owner's withdrawals, revenues, and expenses all affect OE. True or false? |
True |
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The year end balance of the owner's capital account appears in... |
Both the statement of OE and the balance sheet |
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Which of the following reports information as of a specific date? . Income Statement Statement of cash flows Statement of OE Balance sheet |
The balance sheet reports information as of a specific date |
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The financial statement that shows a summary of revenues and expenses of a business for a specific period of time (month, year,...) is called... |
An income statement. |
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The oversight board created by the Sarbanes-Oxley Act was the... |
Public company accounting oversight board |
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The accounting equation can also be represented as.... |
Assets-liabilities=OE Assets-OE=Liabilities |
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Managerial accountants would be responsible providing managers with an expansion of a product line report. True or False? |
True. |
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Which of the following is not an asset? . Cash Inventory OE Investments |
OE |
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Goods purchased on account for future business use are... Prepaid expenses Or Prepaid liabilities |
Expenses |
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What is the purpose of a merchandising business? |
To buy then sell finished goods for profit Examples: game stop, best buy, gap |
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When are revenues reported? |
When work is completed on a job. |
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Profit is |
The difference between the amounts received from customers and the amounts paid for the inputs used to provide the goods or services |
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What percentage of US businesses are proprietorships? |
70% |
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Transactions that affect owner's equity include... |
Owner's investments, owner's withdrawals, revenues, and expenses |
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The debt created by a business when it makes a purchase on account is called... Account receivable or Expense payable or Account payable |
Account payable |
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Authoritative body in US with primary responsibility for developing accounting principles? |
FASB (Financial Accounting Standards Board) |
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Accounting is |
An information system that provides reports to users regarding economic activities and condition of a business |
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Managerial accounting reports to... |
Internal users |
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Financial Accounting reports to... |
External users |
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Organize the four main financial statements in the order needed to prepare the next statemenr |
Income Statement Owner's equity Balance sheet Statement of cash flows |
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Making a sales offer is a business transaction. T/F |
F |
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Owner's withdrawals increase expenses. T/F |
FALSE. They decrease owner's equity |
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GAAP stands for |
Generally accepted accounting principles |
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The Sarbanes-Oxley act of 2002 prohibits employment of auditors by their clients for what period after their last audit of said client? |
One year |
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Financial reports are used by |
Anyone. Managers, creditors, investors |
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Revenue is |
The monetary value charged to customers for services sold |
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The asset created by a business for making a sale on account is... Accounts payable or Accounts receivable |
Accounts receivable |
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Liabilities are reported on the |
Balance sheet |
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Expenses are recorded when |
Assets are used in the process of earning revenue |
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Liabilities are |
Debts owed by a business |
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The statement of cash flows |
Shows money coming into and out of the company |
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Which type of users are employees and managers ? |
Internal users |
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The balance sheet presents assets in the order.... |
Of what will be converted to cash |
