Acct 2010

Front 1

Accounting Equation

Back 1

Assets = Liabilities + Stockholders Equity

Front 2

Four Financial Statements

Back 2

Income Statement
Retained Earnings Statement
Balance Sheet
Cash Flow Statement

Front 3

Income Statement

Back 3

For the period ended

Revenue
Expenses

Front 4

Retained Earnings Statement

Back 4

For the period ended

Dividends
Beginning Retained Earnings

Front 5

Balance Sheet

Back 5

As of a Certain Date
Assets
Liabilities
Stockholders Equity

Front 6

Cash Flow Statement

Back 6

For the period ended

Front 7

Six Account Types

Back 7

Dividends, Expenses, Assets

Liabilities, Stockholder’s Equity, Revenue

Front 8

Dividends is a _______ account.

Back 8

DEBIT

Front 9

Expenses is a _______ account

Back 9

DEBIT

Front 10

Assets is a _______ account

Back 10

DEBIT

Front 11

Liabilities is a _______ account

Back 11

CREDIT

Front 12

Stockholder’s Equity is a _______ account

Back 12

CREDIT

Front 13

Revenue is a _______ account

Back 13

CREDIT

Front 14

Three transaction types

Back 14

Operating
Investing
Financing

Front 15

Operating Cash Flow

Back 15

Major line or lines of work to provide products and services to customers

Purchases from suppliers

Sell to customers

Front 16

Investing Cash Flow

Back 16

Purchase or sale of long-term productive assets.

Lending of money to others

Receiving principal payments back from loans.

Front 17

Financing Cash Flow

Back 17

Borrowing and paying back borrowed funds

Selling company stock and buying it back (treasury stock)

Paying dividends

Front 18

Unearned revenues

Back 18

Represent previously recorded liabilities that were created when cash was received in advance, and that must be adjusted for the amount of revenue actually earned during the period.

Front 19

Accrued revenues

Back 19

Represent revenues that were earned but not recorded because cash was received after the services were performed or goods were delivered.

Front 20

Prepaid expenses

Back 20

Represent previously recorded assets, such as prepaid rent, supplies, and equipment, that must be adjusted for the amount of expense actually incurred during the period through the use of the asset.

Front 21

Accrued expenses

Back 21

Represent expenses that were incurred but were not recorded because cash was paid after the goods or services were received.

Front 22

Trial balance

Back 22

Listing of all of the account balances in the general ledger.

Front 23

Contra asset

Back 23

Account that is directly related to an asset account and reduces the associated asset account balance.

Front 24

Deferred expenses

Back 24

Expenses in which cash is paid before the expense is recognized. Examples would include prepaid rent or prepaid advertising.

Front 25

Form 10-K

Back 25

Annual Report
- Due within 90 days of fiscal year-end.
- Contains audited financial statements.

Front 26

Form 10-Q

Back 26

Quarterly Report
- due within 45 days of the end of each quarter
- Contains financial statements that are usually unaudited.

Front 27

Form 8-K

Back 27

Current Events Report
- Due within 15 days of the occurrence of a major reportable event.
- Any financial statements that are included in the form can be unaudited.

Front 28

Current Assets

Back 28

Assets that will be converted into cash or be used up within the one year or the company's normal operating cycle, whichever is longer.

Front 29

Revenues are considered to be earned when three conditions are met:

Back 29

1. Goods have been delivered or services have been rendered.
2. The price for the goods or services is known.
3. Collection from the customer is reasonably assured.

Front 30

Matching Principle

Back 30

Revenues are recorded when earned, expenses are recorded when incurred.

Front 31

Asset

Back 31

economic resource with probable future benefits.

Debit Increase, Credit Decrease

Front 32

Liability

Back 32

probable future sacrifices of economic resources.

Debit Decrease, Credit Increase

Front 33

Stockholders' Equity

Back 33

financing provided by owners and operations.

Debit Decrease, Credit Increase

Front 34

Revenue

Back 34

increase in assets or settlement of liabilities from ongoing operations.

Front 35

Expense

Back 35

decrease in assets or increase in liabilities from ongoing operations.

Front 36

Gain

Back 36

increase in assets or settlement of liabilities from peripheral activities.

Front 37

Loss

Back 37

decrease in assets or increase in liabilities from peripheral activities.

Front 38

Merchandise Inventory

Back 38

Goods held for resale in the normal course of business. The goods usually are acquired in a finished condition and are ready for sale without further processing.

Front 39

Raw materials Inventory

Back 39

Items acquired for processing into finished goods.

Front 40

Work in Process Inventory

Back 40

Goods in the process of being manufactured but not yet complete.

Front 41

Finished goods inventory

Back 41

Manufactured goods that are complete and ready for sale.

Front 42

Specific Identification

Back 42

Specific cost of each unit that is sold.

Front 43

First-in, First-out

Back 43

Assign the older costs to the units sold.

Assumes oldest goods sold first.

Front 44

Last-in, First-out

Back 44

Assign the most recent costs to the units sold.

Assumes newest goods sold first.

Front 45

Weighted Average

Back 45

Assign the average cost of the goods available for sale to cost of goods sold.