Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

jeremy harmon > Accounting WOB test > Flashcards

Accounting WOB test Flashcards

1
Q

Accounting

A

Measuring, interpreting and communicating financial information to support internal and external decision making

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

Bookkeeping

A

Keeping financial records

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

What are the 3 goals of accounting

A

Analysis
Interpretation
Using information

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

What are the 3 steps of accounting?

A

Measurement
Processing
Communication

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

What are the 3 public accounting areas?

A

Audit
Tax
Consulting

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

What does GAAP stand for?

A

Generally
Accepted
Accounting
Principal

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

What is the definition of GAAP?

A

Standards and practices used by publicly held corporations in US in preparation of financial statements

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

What does IFRS stand for

A

International
Financial
Reporting
Standards

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

What is the definition for the IFRS

A

Accounting standards and practices used in many countries outside the U.S

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

What is the main difference between the GAAP & IFRS

A

GAAP- used in US only

IFRS- used outside US

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

External Auditors

A

Outside people brought in to determine if financial statements agree with GAP

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

Financial Accounting

A

Prepares financial information for users outside the organization

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

Management Accounting

A

Prepare data for use by managers within the organization

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

What is the main difference between financial and management accounting?

A

Financial = outside organization

Management = inside organization

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

Sarbanes- Oxley

A

Legislation to improve integrity and accountability of financial information

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

Assets

A

Anything of value that a business owns

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

Liabilities

A

Anything a firm owes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Owners Equity

A

Portion of a companies assets that belong to the owners

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

Assets = —– + ——–

A

Assets = Liabilities + owners equity

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

What are the two terms that describe matching principal?

A

Accrual and Cash basis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Accrual Basis

A

Revenue and expenses are recorded when transaction happens

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

Cash basis

A

Revenue and expense are recorded when money is recieved

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

What is the difference between accrual and cash basis

A

Accrual = recorded when transaction happened

Cash- recorded when money is received

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

Depreciation

A

Dollar amount of assets declining in value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Financial Accounting
Prepares financial information for users outside the organization
26
Management Accounting
Prepare data for use by managers within the organization
27
What is the main difference between financial and management accounting?
Financial = outside organization Management = inside organization
28
Sarbanes- Oxley
Legislation to improve integrity and accountability of financial information
29
Assets
Anything of value that a business owns
30
Liabilities
Anything a firm owes
31
Owners Equity
Portion of a companies assets that belong to the owners
32
Assets = ----- + --------
Assets = Liabilities + owners equity
33
What are the two terms that describe matching principal?
Accrual and Cash basis
34
Accrual Basis
Revenue and expenses are recorded when transaction happens
35
Cash basis
Revenue and expense are recorded when money is recieved
36
What is the difference between accrual and cash basis
Accrual = recorded when transaction happened Cash- recorded when money is received
37
Depreciation
Dollar amount of assets declining in value
38
Financial statement explains...
A companies performance and conditions
39
Balance Sheet
Statement of a firms financial positions made up of assets, liabilities and equity
40
Fiscal year
Any 12 consecutive months
41
Current Assets VS Fixed
Current: items that can be turned into cash WITHIN 1 year Fixed Assets: assets acquired for long term use
42
What are 3 examples of fixed assets?
House, land, machinery
43
Current VS Long Term Liabilities
Current Liabilities- obligations due WITHIN a year Long Term Liabilities: obligations due in LONGER than a year
44
What 2 terms describe owners equity
Common stock and retainer earnings
45
Common Stock VS Retainer Earnings
Common stock = stock of a company Retainer Earnings = equity company holds on to
46
Income statement = | EQUATION
Revenue - expenses = net earnings
47
Cost of goods sold is the..
Cost of producing or acquiring a product
48
Gross Profit / Gross Margin =
Sales - cost of goods sold
49
What does EBITDA stand for?
``` Earnings Before Interest Taxes Depreciation Amortization ```
50
Net income (aka bottom line) =
Revenue- expenses
51
Statement of Cash Flow
Shows where cash is spent and made
52
True or False Companies interpret GAP the same
False All companies interpret GAP differently
53
What are financial statements used for?
Evaluating a companies financial health
54
Return on Sales =
Net income ------------ net sales
55
Return on Equity =
net income ------------ total owners equity
56
Earnings per share =
Net income --------------------- average number of shares
57
Working capital =
Current assets - current liabilities
58
Current Ratio is
Current Assets -------------------- Current Liabilities
59
Quick Ratio (3 parts) =
Cash + marketable securities + receivables / ------------------------- Current Liabilities
60
Inventory Turnover Ratio =
Cost of goods sold ----------------------- average inventory
61
Accounts Receivable Turnover Ratio
Net sales ------------- Average accounts receivable
62
Debt to Equity Ratio
Total Liabilities ---------------- Total Equity
63
Debt to Asset Ratio
Total Liabilities -------------- Total Assets
64
What kind of cash basis does Mikes Bikes use?
On a modified cash basis
65
In Mikes Bikes share price is a function of...
Profitability and Riskiness

jeremy harmon (108 decks)

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