Mba - Accounting

Front 1

What is Accounting

Back 1

Counting Money
Accounting for Money

Front 2

Why Accounting

Back 2

Good business tool for making business decisions

Front 3

Two broad categories of accounting information users are

Back 3

Internal to the business entity, external to the business entity.

Front 4

Two types of accounting for the type of internal and external users of accounting information

Back 4

Financial Accounting - Externals

Managerial Accounting - Internals

Front 5

Most important thing about accounting?

Back 5

Shared vocabulary and shared assumptions. Apples are apples and oranges are oranges.

Because we must make informed shared decisions

Front 6

What two bodies oversee accounting standards

Back 6

FASB - Financial Accounting Standard Boards

GAAP - Generally accepted Accounting Principles

Front 7

What are the 4 type of general financial statements.

Back 7

1) Cash Flow
2) Income Statement
3) Balance Sheet
4) Changes in Equity

Front 8

What is the difference between Cash Accounting and
Accural Accounting.

Back 8

Record of Sale:

1) When the cash is received
2) When the goods are shipped (Accural - a cruise SHIP)

Front 9

Name 10 elements that comprise financial statements

Back 9

gains, losses
net income, distributions
revenue, expenses
contributed capital
assets = liabilities + equity

Front 10

Income Statement

Back 10

A given company
for a given period of time
inputs this much revenue
and outputs this much expenses
resulting in New Income or Change in Next Assets for the given period of time.

Front 11

Assets increases are called:
Asset decreases are called:

Back 11

Revenues
Expenses

Front 12

Difference between revenues and expenses are called:

Back 12

Net Revenues (if positive)
Net Loss (if negative

Front 13

Financial Statement:
Changes in Equity

Back 13

For a given period, for a given entity, we have Contributed Capital and Retained Earnings.

Both have a beginning and ending balance and it is equal to the Total Equity that has changed.

Front 14

Balance Sheet

Back 14

Assets = Liabilities + Equity

Front 15

Claims =

Back 15

Claims = Liabilities + Equity

Front 16

True or False

Total Claims are equal to Total Assets

Back 16

True. Assets must have a source so they balance with claims.

Front 17

What are some of the back office activites of accountants

Back 17

payroll
cash inflows
cash payments
purchases
inventory
property records

Front 18

What are some of the tax aspects that accountants work with?

Back 18

Payroll Tax
Property Tax
Sales Tax
Income Tax

Front 19

Can P&L be determined by the balance sheet?

Back 19

No, look at the income statement

Front 20

FAQ
Accounts deal with the past
and predicting the future (future forcasts)

Back 20

FAQ
Assets are the economic resourses claimed by the business.

Front 21

FAQ
An accountant must determine how to allocate shared costs.

Back 21

FAQ
Assets = sources of assets

Front 22

FAQ
Accounts array and measure and calculate:
They also communicate the results to others

Back 22

FAQ
Income Statement = Revenue inflows - expense outflow
for a given entity, for a given time period.

Front 23

FAQ
Accounts design the internal control of the accounting systems

Back 23

FAQ
Statement of Cash Flow

summarizes the business cash inflow and outflow for a period

Front 24

The Balance Sheet is commonly referred to as the

Back 24

Statement of Financil Condition

Front 25

In the balance sheet how are assets valued.

Back 25

Assets are valued at their purchase price unless they have lost value.

Front 26

Accounting Equation equals

Back 26

asset = liabilities + owners equity.

(Owner equity can consist both of contributed capital and retained earnings)

Front 27

Payroll:

The total wages and salaries earned by a employee during a period is called

Back 27

Gross Wages

Front 28

Accellerated Depreciation

Back 28

A method of estimating of a item useful live and allocating that cost of a fixed asset over time. Acclellerated depreciation allocates greater amount to the the cost early in life and lower amount later in life.

Front 29

Two Types of Depreciation

Back 29

Accellerated Depreciation

Straightline Depreciation

Front 30

Straightline Depreciation

Back 30

Spreading the cost of a fixed asset in eqaual amounts to each year of its useful life. Depreciation is the same amount every year by this method.

Front 31

Why do we depreciate the value of something?

Back 31

A method of estimating a item's useful live and allocating that cost (expense) of a asset over time.

Front 32

Accounts Payable

Back 32

short term liabilities on the amount owe to vendors or suppliers for parts, materials, services. Usually not interet burden unless not paid on time

Front 33

Accounts Receivable

Back 33

Short term assets... amount owed to the entity business ecause of parts, products materials or services. Usually not interest bearing unless not paid on time.

Front 34

General Ledger

Back 34

huge database capturing all transactions in a double entry format.
Collect things such as:
Transation:
date
amount
type: debit or credit
vendor
purchase order number
invoice number
payment date, payment method,
budget code,
account title and code.

Front 35

What are the three financial statements that summarize the general ledger?

Back 35

Income Statement
Cash Flow
Balance Sheet

Front 36

The income statement can also me called?

Back 36

The P&L, the profit and loss statement and the earnings statement.

Front 37

A cash flow statement is simalar to your...

Back 37

Bank Account Statement

Front 38

The bottom line on the income statement is called?

Back 38

Net Income

Front 39

FAQ:

The difference between your assets - liabilities in your personal networth.

Back 39

FAQ: for businesses Think Lean and Mean
Make productive use of our resources in a way that generates profits.

Front 40

loan convenants are

Back 40

clauses of the loan agreement that are promises you make to the bank so they will loan you money

Front 41

Who owns the company?

Back 41

With Debt the Lenders
With Stock, the Shareholders
With Retained earnings... the business owns the business.

Front 42

Powers of the shareholders are...

Back 42

1) They can vote on
2) articles of incorporation
3) board of directors who choose the executive management

Front 43

FAQ
Working capital = current assets - current liabilities.
* things that can with a high probality turned to cash.

Back 43

The best business in the world is where we put a little in and get a whole lot out. For example wouldn't it be great if we could invest 10 cents and get $5 dollars out.

Front 44

Factoring

Back 44

selling your accounts receivable to a bank (factoring agent) to get cash (reduced) on the dollar.

Front 45

Costs:

Fixed Costs
Variable Costs
Semi-variables Costs

Back 45

Fixed costs stay constant regardless of regardless of the variables such as number of units produced.

Front 46

Direct Costs are

Back 46

costs that you can logically trace to the creation of the product.

Indirect costs include marketing, selling and designing the product.