Financial Accounting Ch1

Front 1

what is Stockholder's Equity?

Back 1

financing provided by owners ofthe business and operations. It is the claim of the ownersto the assets of the business after the creditor claims have been satisfied.
residual interst because it represents assets - liabilities

Front 2

what is the accounting equation for Statement of Retained earnings?

Back 2

Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends.

Front 3

How are accounting measurements determined in the U.S?

Back 3

The Securities and Exchange Commission and The Financial Accounting Standards Board.

Front 4

What is a Sole Proprietorship?

Back 4

an unincomporated business owned by one individual.

Front 5

what is a Partnership?

Back 5

unincorporated association of two or more individuals to carry on a business

Front 6

what is a Corporation?

Back 6

a business that is organzied under the laws of particular state whereby a charter is granted and the entity os authorized to issue shares of stock as evidence of ownership by the owners.

Front 7

SEC

Back 7

Securities and Exchange Commission

Front 8

Audit

Back 8

An examination of the financial reports to assure that they represent what they claim and conform with generally accepted accounting principles.

Front 9

Sole Proprietorship

Back 9

An unincorporated business owned by one person.

Front 10

Accounting

Back 10

A system that collects and process financial information about an organization and reports that information to decision makers.

Front 11

Seperate Entity

Back 11

The organizaiton for which financial data areto be collected (separate and distinct from its owners)

Front 12

Audit Report

Back 12

A report that describes the auditors' opinion of the fairness of the financial statement presentations and the evidence gathered to support that opinion.

Front 13

Cost Principle

Back 13

Initial recording of financial statement elements at acquistion cost.

Front 14

FASB

Back 14

Financial Accounting Standards Board

Front 15

CPA

Back 15

Certifed Public Accountant

Front 16

Unit of measure

Back 16

measurement infomation about an entity in the monetary unit- dollars or other national currency.

Front 17

GAAP

Back 17

Generally accepted accounting principles

Front 18

Publicly traded

Back 18

A company with stock that can be bought andsold by investors on established stock exchanges.

Front 19

Accounts payable

Back 19

Liability

Front 20

Accounts receivable

Back 20

Asset

Front 21

Cash and cash equivvalents

Back 21

Asset

Front 22

Cost of prdoucts sold

Back 22

Expense on income statement

Front 23

Property, plant and equipment

Back 23

Asset

Front 24

Income taxes

Back 24

Expenses on income statement

Front 25

Interest Expense

Back 25

Expenses

Front 26

Inventories

Back 26

Asset

Front 27

Land

Back 27

Asset

Front 28

Marketing, administrative, and other operating expenses

Back 28

Expenses

Front 29

Long-term Debt

Back 29

Liability

Front 30

Net Sales

Back 30

Revenue on income statement

Front 31

Notes Payable

Back 31

Liability

Front 32

Retained Earnings

Back 32

Stockholder's equity

Front 33

Taxes payable

Back 33

Liability