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10 Cards in this Set
- Front
- Back
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Operating Activities |
cash from revenues/used for expenses |
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Investing Activities |
buying/selling capital assets, intangibles, long-term investments |
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Financing Activities |
- issuance of shares/repurchase of shares, borrowed funds - payment of dividends |
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Income Statement items that DO NOT affect cash |
- depreciation/amortization of capital assets (ADD) - sale of capital assets (investing) (ADD) - gains on sale of capital assets (investing (DEDUCT) |
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Transactions |
- involve a past exchange of goods/services - measurable - occur between 2 parties - verifiable through source documents |
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Criteria for Revenue Recognition |
- significant risk and rewards of ownership have been transferred to buyer - seller has no continuing involvement or control over the goods - costs incurred/to be incurred to complete transaction can be reliable measured - portion of services complete can be reliably measured |
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Single Step Statement of Income |
Revenues - Expenses = Net Profit |
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Multistep Statement of Income |
1. Sales Revenue 2. Operating Expenses 3. Profit from Operations 4. Other Expenses 5. Profit before Income Tax 6. Net Profit/Loss |
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Type of Internal Control |
- p+hysical control - assignment of responsibilities - separation of duties - independent verification - documentation |
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3 Important Dates for S/E |
- date of declaration - date of record - date of payment |
