Act210 Exam One

Front 1

Cash (balance sheet classification)

Back 1

Current Asset

Front 2

Accounts Receivable (balance sheet classification)

Back 2

Current Asset

Front 3

Short Term Investments (balance sheet classification)

Back 3

Current Asset

Front 4

Notes Receivable (within one year) (balance sheet classification)

Back 4

Current Asset

Front 5

Interest Receivable (balance sheet classification)

Back 5

Current Asset

Front 6

Office Supplies (balance sheet classification)

Back 6

Current Asset

Front 7

Supplies Inventory (balance sheet classification)

Back 7

Current Asset

Front 8

Prepaid ________ (balance sheet classification)

Back 8

Current Asset

Front 9

Long Term Investments (balance sheet classification)

Back 9

Investments

Front 10

Long Term Notes Receivable (balance sheet classification)

Back 10

Investments

Front 11

Long Term Interest Receivable (balance sheet classification)

Back 11

Investments

Front 12

Land (balance sheet classification)

Back 12

Property, Plant, and Equipment

Front 13

Building (balance sheet classification)

Back 13

Property, Plant, and Equipment

Front 14

Equipment (balance sheet classification)

Back 14

Property, Plant, and Equipment

Front 15

Office Equipment (balance sheet classification)

Back 15

Property, Plant, and Equipment

Front 16

Accounts Payable (balance sheet classification)

Back 16

Current Liabilities

Front 17

Notes Payable (due within 1 year) (balance sheet classification)

Back 17

Current Liabilities

Front 18

Current portion of long term debt (balance sheet classification)

Back 18

Current Liabilities

Front 19

______ Payable (balance sheet classification)

Back 19

Current Liabilities

Front 20

Unearned Revenue (balance sheet classification)

Back 20

Current Liabilities

Front 21

Long Term Notes Payable (balance sheet classification)

Back 21

Long Term Liabilities

Front 22

Lease Payable (balance sheet classification)

Back 22

Long Term Liabilities

Front 23

Bond Payable (balance sheet classification)

Back 23

Long Term Liabilities

Front 24

Common Stock (balance sheet classification)

Back 24

Shareholders' Equity

Front 25

Paid-in capital (balance sheet classification)

Back 25

Shareholders' Equity

Front 26

Retained Earnings (balance sheet classification)

Back 26

Shareholders' Equity

Front 27

Revenues (balance sheet classification)

Back 27

Income Statement

Front 28

Expenses (balance sheet classification)

Back 28

Income Statement

Front 29

Beginning Retained Earnings (balance sheet classification)

Back 29

Statement of Retained Earnings

Front 30

Net Income (balance sheet classification)

Back 30

Statement of Retained Earnings

Front 31

Dividends (balance sheet classification)

Back 31

Statement of Retained Earnings

Front 32

Four Types of Financial Statements

Back 32

Income Statement, Statement of Retained Earnings, Balance Sheet, Statement of Cash Flow

Front 33

Income Statement

Back 33

Reports Results. Net Income or Net Loss
Revenue-Expenses=Net Income

Front 34

Define Expense

Back 34

Cost of doing business

Front 35

Define Revenue

Back 35

An Increase in assets resulting from the sale of g+s.

how we get money/ how we make money

Front 36

Define the function of Financial Statement

Back 36

communicate information to users

Front 37

Retained Earnings Statement

Back 37

Shows the undistributed profits of the corporation

Front 38

Balance Sheet

Back 38

Reports Assets, Liabilities, and Shareholders' Equity

Front 39

Define Assets and Assets formula

Back 39

Things we own, resources we have
A=L+SE

Front 40

Define Liabilities

Back 40

What we owe, debt

Front 41

Define Internal Users

Back 41

Within Company, use financial statements to make decisions

Front 42

Define External Users

Back 42

Investors, Creditors, Tax Agencies, Regulators.

Front 43

Three Types of Business Activities

Back 43

Operating, Investing, Financing

Front 44

Define Operating Activities

Back 44

Running the Business, earned money, spent money

Front 45

Define Investing Activities

Back 45

Obtaining resources or assets to operate

Front 46

Define Financing Activities

Back 46

Borrowing, Selling stock

Front 47

Define Current Assets

Back 47

Asset that will be used or converted into cash within a year

Front 48

Define Property, Plant, and Equipment

Back 48

Inventory, Long Term Investments

Front 49

Define Depreciation

Back 49

Allocating an assets full purchase price to a number of years instead of expensing the full cost in year of purcahse

Front 50

Define Current Liabilities

Back 50

Obligations to be paid in the coming year

Front 51

Define Stockholders' Equity

Back 51

Capital Stock, Retained Earnings

Front 52

GAAP

Back 52

are the rules

Front 53

FASB

Back 53

Make the rules

Front 54

SEC

Back 54

Enforces the rules

Front 55

Accounting Assumptions

Back 55

Monetary unit, Economic entity, time period, going concern

Front 56

Four Accounting Principles

Back 56

Cost- Assets recored at cost, value isn't reported

Full Disclosure- Disclose significant events to users

Materiality- small amounts don't have to follow GAAP

conservatism- Choose solution least likely to overstate assets or income

Front 57

Earnings Per Share Formula

Back 57

EPS=Net Income- Preferred Stock Dividends/ Average Common Shares Outstanding

Front 58

Working Capital Formula

Back 58

Current Assets-Current Liabilities

Front 59

Current ratio

Back 59

Current Assets/ Current Liabilities

Front 60

Debt to total asset ratio

Back 60

Total Debts/ Total Assets

Front 61

Free Cash Flow

Back 61

Cash provided by operations- capital expenditures- cash dividends