Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Accounting > Accounting Final > Flashcards

Accounting Final Flashcards

(69 cards)

Start Studying
1
Q

Cash flows from operating activities:

In flows

A

Sale of good or services

Collection of interest and dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Cash flows from operating activities:

Outflows

A

For inventory
For operating expenses
For interest
For income taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Cash flows from investing activities

In flow

A

Sale of investments
Sale of long term assets
Collection of notes receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Cash flows from investing activities

Our flow

A

Purchase of investments
Purchase of long term assets
Lending with notes receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Cash flows for financing activities

In flow

A

Issue a bond or notes payable

Issue a stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Cash flows for financing activities

Out flow

A

Repayment of bond or note payable
Acquisition of treasury stock
Payment of dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is an outflow?

A

We paid cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is an inflow

A

We receive cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the accounting equation

A

Asset=Liabilities + stockholders equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Operation deals primarily with what

A 
Current asset
Current liabilities 
 -interest 
 -taxes
 -net income
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Financing deals primarily with what

A

Long term assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Financing deals primarily with what

A

Long term liabilities

Stockholders equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are non cash activities?

A

Significant investing or financing activities that do not affect cash

Ex)
Purchase long term asset by issuing stock or debt

Conversion of bond payable to common stock

Exchange of long term asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Who owns a corporation?

A

The stock holders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who runs the corporation?

A

The president and CEO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Who puts check and balances on the President and CEO so that they don’t take advantage of stockholders or people?

A

The chairman and Board of Directors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the advantages of the corporate form

A 
Separate legal existence 
Limited liability of stockholder
Transferable ownership rights 
Ability to acquire capital 
Continuous life
Corporate management
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the disadvantages of corporate form

A

Corporate management
Government regulations
Additional taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are stockholders rights

A

Right to vote

Right to receive dividends

Right to share in distribution of assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Advantage and disadvantages of corporation

A

Ad

  • limited liability
  • raise capital and transfer ownership

Dis

  • additional taxes
  • more paperwork
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the classes of stock

A

Preferred and common

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Preferred stock is what

A

Stock with special characteristics

Get preference if dividend and liquidation

No voting rights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Common stock get what

A

Voting rights and risidual claims to profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

When do you account for stocks

A

Issuance of stock and stock repurchase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What does issuing a stock do
Increases assets and increase common stock for par value and additional paid in capital for difference
26
Stock repurchase is what
When company repurchase own stock Called treasury stock
27
What belongs on the balance sheet
Assets Liability’s Stockholder Equity
28
What belongs on the income statement
Revenues and expenses
29
What is a current asset or liability
It is an asset or liability that would be: Used paid or received in a year Used within a year
30
What is a long term asset or liability
Ones that are used paid or received | Longer than a year
31
What is the accounting equation
Asset = Liabilities + Stockholder Equity Stockholder Equity= retained earnings + common stock Retained earnings= Net income - Dividends Net income= revenue - expenses
32
What does financial accounting do
Helps decision makers outside the company
33
What does Managerial accounting do
Helps decision makers within the company
34
What is disclosure
Providing financial info to outside users
35
What is a sole proprietorship
Business owned by one person
36
What is a partnership
Business owned by two or more people
37
What is a corporation
Business that is legally separated from its owners Stockholder (owners) have limited liability
38
What are the fundamental activities of profit firm
Make goal Obtain financing (for goal) Make investments Conduct operations G FEO
39
What are investing activity
Acquiring and disposing of assets used to produce and sell product or service
40
Short term assets are what
Resources that are used up quickly Ex. Inventory
41
What are long term asset
Resources used over long periods of time Ex. Equipment
42
What are operating activities
Activities that include production promotion or selling of things
43
Financing activities are what
Getting money | Debt financing) borrow money from (Equity financing) get money form owners (stockholder
44
What are the four financial statements that accountants use
Balance sheet Statement of cash flow Statement of equity Income statement
45
What reports a companies financial position at a point in time?
Balance sheet - “it is a snap shot”
46
What financial statement shows performance over a period of time?
Statements of cash flows Statement of equity Income statement - “it is a movie”
47
What are auditors
People hired by company to see if financial stammers are following GAAP (General accepted accounting principles)
48
What are the roles of auditor
See if management follow GAAP when make financial statement Provide credibility to financial statement So that investor and credit can make decision
49
What is GAAP
General accepted accounting principles Accounting rules and standards for financial reporting
50
What is the purpose of GAAP
Insure financial reporting is transparent and consistent for one org to another
51
What are elements of high quality accounting info
Quality Accounting standards (follow GAAP) Quality auditing standards (public company audited) Regular oversight and monitoring (SEC) Basically Relevant-reliable- comparable
52
What is an asset
Companies resources
53
What is liability and stockholders equity
They are claims to resources of a company
54
What does DEAD CURLS stand for
Debit: Expense - Asset - Dividends (Increase on debit/ decrease credit) Credit: Unearned revenue - Revenue - Liability - Stockholder Equity (Increase on credit/ decrease debit)
55
On the t account what side is the debit and credit
Debit left | Credit right
56
What is a contra account
It’s account is opposite of its regulars account Cash is asset (increase on debit acct) Accumulated depreciation is contra-asset (Increase on credit)
57
What is deferred revenue
You take cash from costumer but did not perform service yet
58
Is defered revenue a revenue account
No it is a liability account
59
What is done for the accounting cycle
Analyzing journalize post
60
What is the general income statement formate
Revenue - COG (cost of goods sold) = Gross profit - Expense = Net income
61
What are the 4 types of adjustments
Deferred revenue / deferred expense | Accrual revenue / accrual expense
62
What are adjusting entries
Adjustments to accounts (revenue and expenses) at the end of the year
63
What is the rule about adjusting entries
Never involves cash Effects at least one balance sheet and one income statement
64
What is a common trend regarding adjustment entries
Expenses are debited and revenues are credited Ex. Supplies exp Salaries exp - supply Salary pay Rent exp. interest rec -prepaid rent Interest rev Unearned rev. Interest exp. - service rev. Interest pay. Depreciation exp - Accumulated depreciation
65
What are closing entries
Temporary accounts that are closed into retained earnings at end of the year
66
What does RED is dead mean
Revenue - expenses - dividends Are temporary accounts and most be closed into retained earnings (so zeroed)
67
What is the entry close for revenue
Revenue | - retained earnings
68
What is the entry close for expense
Retained earning | - expenses (all of them)
69
What is the entry close for dividends
Retained earning | - dividends

Accounting (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions