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Flashcards in accounting Deck (48):
1

What is appreciation?

  • general increase in value of property that occurs over time

2

an amount of money spent

expenditure

3

What are some examples of liquid assets?

  • cash in checking account
  • cash in savings account
  • stocks owned

4

type of expense that changes each month

variable

5

decrease in value of property as it becomes old

depreciation

6

What are some accountants responsibilities?

  • prepare and interpret financial reports
  • follow budgets
  • make business decisions
  • maintain and review the business records of an individual or organization
  • prepare budgets for individuals and businesses

7

money you owe for something

liability

8

What is a liability?

  • money you owe for something
  • buy now, pay later
  • loans/notes or accounts payable

9

What is depreciation?

  • the decrease in value of property
  • decreases as the item becomes old and gradually wears out

10

Describe a bookkeeper

  • entry level job
  • perform only one or two tasks
  • average starting salary $33000 to $36000

11

Preparing forms and reports for taxes or other financial purposes is referred to as _______

bookkeeping

12

What are some examples of liabilities?

  • car loan
  • mortgage
  • supplies purchased on credit to run a company

13

type of expense that occurs once in awhile

periodic

14

Describe a Certified Public Accountant

  • aka CPA
  • have to take a national test to become CPA
  • average starting salary $41000 to $43000

15

What are some examples of items that appreciate?

  • house
  • land
  • antiques

16

money you have available to spend as a result of working or from other income

cash inflow

17

What are the 3 types of business expenses?

  • fixed expense
  • variable expense
  • periodic expense

18

Why is accounting a good career?

  • considered hottest career
  • has job stability (means you can get an accounting job anywhere - everyone needs accountants)
  • has high salaries

19

What are some examples of variable expenses?

  • electric bill
  • gas bill
  • phone bill
  • food
  • clothing
  • waitress employees
  • cashier pay

20

amounts of money spent

cash outflow

21

costs of operating a business

expense

22

Where are some places you could work as an accountant?

  • for your favorite musician
  • target
  • doctor's office
  • red cross
  • toys r us
  • country club
  • restaurant
  • cerner
  • apple
  • for your own accounting business

23

What are some examples of items that depreciate?

  • cars
  • electronics
  • computers
  • ball machine

24

What are some examples of periodic expenses?

  • car repairs
  • Christmas bonus
  • spring court maintenance
  • birthday presents
  • car registration
  • school taxes
  • building repairs

25

What is financial accounting?

  • reporting information to external users (people not involved in day to day business operations) like investors
  • used for external use (outside use)
  • ex. an annual report is prepared for current or potential investors

26

What are some examples of cash outflow?

  • food
  • clothing
  • transportation
  • living expenses
  • haircuts
  • tennis lessons
  • Christmas decorations

27

What is a liquid asset?

  • an asset that is easily converted to cash

28

revenue

all income a business receives over a period of time

29

Describe accounting?

  • is used in all companies, in all industries and for nonprofit and for profit companies
  • helps maximize the company's value

30

expense

costs of operating a business

31

What are some examples of assets?

  • house
  • barbie collection
  • car
  • jewelry
  • motorcycles

32

What is cash outflow?

  • amount of money spent

33

What two things must a business accomplish to survive?

  • operate at a profit (make more money then it spends)
  • attract individuals skilled enough to run the business

34

type of expense that occurs on a regular basis

fixed

35

general increase in value of property

appreciation

36

something you own of value

asset

37

Hearing Aid Associates spent $50 on ink, $25 on food, and $75 on hearing aids.  Susan bought aids for $1100, Ned bought aids for $900 and Lisa bought aids for $1500.

 

What is the company's cash inflow?

What is the company's cash outflow?

What is the company's net income?

  • Cash inflow - $3500
  • Cash outflow - $150
  • Net Income - $3350 (the amount of money company made - Add up all the money coming in minus the expenses )

38

an asset that is easily converted to cash

liquid asset

39

What is a periodic expense?

  • an expense that occurs once in awhile (periodically)
  • need to set money aside so you have it when the bill is due

40

What is cash inflow?

  • money you have available to spend as a result of working or from other income
  • other income includes interest, investment, child support, alimony, social security

41

What is an expenditure?

  • an amount of money spent, as a whole or on a particular thing
  • goal is to make sure money coming in = money going out

42

What is a fixed expense?

costs that occur on a regular basis

43

What is a variable expense?

  • an expense that changes (varies) with each month
  • may not be easy to estimate

44

What is an asset?

  • something you own of value
  • 'one man's trash is another man's treasure'

45

all income a business receives over a period of time

revenue

46

What is management accounting?

  • reports info to managers of a company to assist them in decision making
  • is for internal use (inside use)
  • ex. give an income report (shows all money  brought into company) to the owner

47

What are some examples of fixed expenses?

  • rent
  • mortgage
  • insurance premiums
  • salary employees
  • tax payments
  • cable
  • newspaper subscription
  • magazine subscription
  • loan payment

48

What is fiscal year?

  • aka financial year or budget year
  • period used for calculating annual (yearly) financial statements in business or other organizations
  • does not always begin in january and end in december
  • runs over any 12 month period
  • can be october thru september, august thru july, etc