Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/30

Click to flip

30 Cards in this Set

  • Front
  • Back

Accounting

System for recognizing, organizing, analyzing, and reporting information about financial transactions.

Financial Accounting

Prepares financial statements for use by owners, creditors, suppliers, and other external stakeholders.

GAAP

Generally Accepted Accounting Principles.


Set of accounting standards.

FASB

Financial Accounting Standards Board.


Established general principles.

Balance Sheet

Financial statement that reports the financial position of a firm by identifying and reporting the value of a firm's assets, liabilities, and owner's equity.

Accounting Equation

Assets = Liabilities + Owner's Equity

Assets

Resources owned by a firm

Liabilities

Claims outsiders have against a firm's assets

Owner's Equity

Claims a firm's owner have against company assets.

Income Statement

Reports revenues, expenses, and net income that resulted from firm's operation.

Revenue

Increases in assets

Accrual-Basis Accounting

Method of accounting that recognizes revenue when it is earned and matches expenses to the revenues they helped produce.

Expenses

Resources used up by a firm

Net Income

Difference between revenue of a firm and expenses it incurs.

Statement of Cash Flows

Financial statement that identifies a firm's sources and users of cash.

Horizontal Analysis

Analysis of financial statements that compares account values reputed on thar statements over two or more years to identify changes and trends.

Budgeting

Management tool that shows explicitly how a firm will acquire and use resources in order to achieve a goal.

Operating Budgets

Communicate an organization's sales and production goals and needed resources.

Financial Budgets

Focus on the firm's financial goals and identifies resources needed to achieve those goals.

Matter Budget

Presentation of an organization's operation and financial Budgets that represent the firm's overall plan of action.

Managerial Accounting

Provides report and analysis to managers to help them make informed business decisions.

Cost

Value of what is given up

Out-Of-Pocket Cost

Involves payment of money or other resources

Implicit Cost

Opportunity cost that arises when a firm users owner-supplied resources.

Fixed Costs

Costs that remain the same when the level of production changes

Variable Costs

Costs that vary directly with level of production

Direct Cost

Closures incurred directly as the result of some specific cost object

Indirect Cost

Result of a firm's general operations, not directly tied to any specific cost object

ABC

Activity-Based Costing.


Technique to assign product costs based on links between activities that drive costs and the production of specific products.

SEC

Securities and Exchange Commission