View
- Term
- Definition
- Both Sides
Study
- All (37)
Shortcut Show
Next
Prev
Flip
ACCT 2301:Chapter 1
Accounting is a system that...
|
identifies
records
communicates
|
Accounting communicates information that is...
|
relevant
reliable
comparable
about an organization's business activities
|
Accounting Activities
|
identifying
recording
communicating
|
External Users of Accounting Information
|
lenders
shareholders
governments
consumer groups
external auditors
customers
|
Internal Users of Accounting Information
|
managers
officers
internal auditors
sales staff
budget officers
controllers
|
Financial accounting provides external users with....
|
financial statements
|
Managerial accounting provides needs for ________ decision makers.
|
internal
|
Managerial accounting for internal decision makers provides...
|
documents such as budgets and cost analyses
|
What does GAAP stand for?
|
Generally Accepted Accounting Principles
|
Principles of GAP
|
relevant information
reliable information
comparable information
|
What is the name of the government agency SEC?
|
Securities and Exchange Commission
|
What is FASB?
|
financial accounting standards board
|
What does the Financial Accounting Standards Board (FASB) do?
|
creates the rules
|
What does SEC do?
|
set the rules
|
Matching principle (expense recognition)
|
prescribes that a company must record its expenses incurred to generate revenue
|
Sarbanes-Oxley Act (SOX)
|
cleaned up inconsistencies
|
SOX
|
Sarbanes-Oxley Act, Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports.
|
Dodd-Frank Act (2010)
|
1. Promote accountability and transparency of financial system
2. end "too big to fail" institutions
3. end taxpayer bailouts of corporations
4. protect consumers from abusive financial practices
|
Assets =
|
liabilities + equity
|
What are assests?
|
resources owned or controlled by a company
|
______ result from creditors' claims on assets.
|
liabilites
|
Equity
|
owner's claim on assets
|
accounts receivable
|
money people owe you
|
notes receivable
|
money lent to someone; owed to you
|
Accounts payable
|
WE owe money
|
Notes payable
|
Money we borrow; owed
|
Taxes payable
|
For federal, state or local taxes.
Govt is your creditor.
|
Contributed capital
|
money contributed by owners
i.e. stock
|
dividends
|
distribution of a company's earnings to its stockholders as a return on their investment (NOT an expense)
|
Retained earnings
|
company earnings retained
|
Retained Earnings include....
|
dividends
revenues
expenses
|
Expanded Accounting Equation
|
contributed captial - dividends + revenues - expenses
|
Rules of transaction analysis
|
1. Every transaction affects at least two accounts
2. The accounting equation must remain in balance after each transaction
|
Income Statement
|
describes a company;s revenues and expenses along with the resulting net income or loss over a PERIOD OF TIME due to earnings activities
|
income statement equation
|
revenues
- expenses
__________
#NAME?
|
formula for retained earnings statement
|
beginning retained earnings + net income - dividends = ending retained earnings
|
balance sheet
|
describes a company's financial position at a point in time
Assets= Liabilites + Equity
|