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ABM > Balance Sheet And Income Statement > Flashcards

Balance Sheet And Income Statement Flashcards

1
Q

Total amount of revenue that the company was able to generate from selling products.

A

Sales

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2
Q

To record returns of customers.

A

Sales Return

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3
Q

Discounts given to customers who pay early.

A

Sales Discount

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4
Q

The actual cost of merchandise that the company was able to sell.

A

Cost of Goods Sold

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5
Q

The amount of inventory at the beginning of the accounting period. This is also the amount of ending inventory from the previous period.

A

Beginning Inventory

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6
Q

Amount of goods bought during the current accounting period.

A

Purchases

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7
Q

To record early payments by the company to the suppliers.

A

Purchase Discount

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8
Q

To record merchandise returned by the company to their suppliers.

A

Purchase Return

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9
Q

Used to record transportation costs of merchandise purchased by the company.

A

Freight In

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10
Q

Total cost of inventory unsold at the end of the accounting cycle.

A

Ending Inventory

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11
Q

These expenses are not directly related to the merchandising function of the company but are necessary for the business to operate effectively.

Example: salaries of the manager, security guard.

A

General and Administrative Expenses

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12
Q

These expenses are those that are directly related to the main purpose of a merchandising business.

Example: salaries of sales agent, salary of driver of the delivery truck, advertising expenses, delivery expenses.

A

Selling Expenses

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13
Q

Types of Business according to activities

A

Service Business
Merchandising Business
Manufacturing Business

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14
Q

Forms of Business Organization

A

Sole Proprietorships
Partnerships
Cooperatives
Corporation

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15
Q

Types of Financial Statement

A

Statement of Financial Position
Statement of Comprehensive Income
Statement of Cash Flow
Statement of Changes in Equity

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16
Q

Is used to provide an overview of a business’s financial position at a given point in time

A

Statement of Financial Position

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17
Q

Arethose accounts that continue to maintain ongoing balances over time. All accounts that are aggregated into the balance sheet are considered permanent accounts; these are the asset, liability, and equity accounts.

A

Permanent Accounts

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18
Q

Includeallowance for doubtful accounts and accumulated depreciation.

A

Contra Asset Accounts

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19
Q

Contains those revenue and expense items that have not yet been realized. It accompanies an organization’s income statement, and is intended to present a more complete picture of the financial results of a business.

A

Statement of Comprehensive Income

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20
Q

Isan account that is closed at the end of every accounting period and starts a new period with a zero balance. The accounts are closed to prevent their balances from being mixed with the balances of the next accounting period.

A

Temporary Accounts

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21
Q

Is used in a general ledger to reduce the value of a related account when the two are netted together. A contra account’s natural balance is the opposite of the associated account. If a debit is the natural balance recorded in the related account, the contra account records a credit.

A

Contra Purchases

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22
Q

Shows the financial condition/ position of a business as of a given period. It consists of assets, liabilities, and capital or owner’s equity.

A

Balance Sheet

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23
Q

Shows the result of operations for a given period. It consists of the revenue, cost, and expenses.

A

Income Statement

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24
Q

Shows the changes in the capital or owner’s equity as a result of additional investment or withdrawals by the owner, plus or minus the net income or net loss for the year.

A

Statement of Owner’s Equity

25
Q

The key product or the end product of the accounting process

A

The Financial Statements

26
Q

Summarizes the cash receipts and cash disbursement for the accounting period.

A

Statement of Cash Flow

27
Q

Fundamental Accounting Equation

A

Assets=Liabilities+Owner’s Equity

28
Q

Are resources owned by the business

A

Assets

29
Q

Are assets that can be realized one year after year-end date

A

Current Assets

30
Q

Are assets that cannot be realized one year after year-end date

A

Non-Current Assets

31
Q

Are assets without physical substance

A

Intangible Assets

32
Q

Currents Assets

A

Cash
Accounts Receivable
Merchandise Inventory
Supplies
Accrued Income
Prepaid Expense

33
Q

Non-Current Assets

A

Property
Plant and Equipment (equipment, furniture, building, land)

34
Q

Intangible Assets

A

Copyright, Trademarks, Patents

35
Q

Debt owned by the company

A

Liabilities

36
Q

Liabilities that fall due within one year after year-end date

A

Current Liabilities

37
Q

Liabilities that do not fall due within one year after year-end date

A

Non-Current Liabilities

38
Q

Current Liabilities

A

Notes Payable
Accounts Payable

39
Q

Non-Current Liabilities

A

Loans Payable
Mortgage Payable

40
Q

Are the owner’s claim in the business

A

Owner’s Equity

41
Q

Owner’s Equity

A

Initial Investment/Capital
Additional Investment
Withdrawal

42
Q

Earned or generated by the business in performing services for a client.

A

Service Income

43
Q

Laundry services by a laundry shop

A

Laundry Income

44
Q

Medical services by a doctor

A

Medical Fees

45
Q

Dental services by a dentist

A

Dental Fees

46
Q

Legal services by a lawyer

A

Legal Fees

47
Q

Advisory services by a consultant

A

Consultancy Fees

48
Q

Accounting or auditing services by a certified public accountant

A

Audit Fees

49
Q

Include all payments made to employees or workers for rendering services to a company

A

Salaries and wages expense

50
Q

Is an expense related to the use of electicity, water and telecommunication facilities

A

Utilities expense

51
Q

Covers office supplies used by a business in the conduct of the daily operations

A

Supplies expense

52
Q

Is the annual portion of the cost of tangible assets such as buildings, machineries and equipment

A

Depreciation Expense

53
Q

Paid on insurance coverage such as premiums paid for health and life insurance, motor vehicles, or other properties.

A

Insurance Expense

54
Q

Is the amount of money charged to the borrower for the use of borrowed funds.

A

Interest expense

55
Q

All revenues are listed down in one section while all expenses are listed in another. Total revenue minus total expense= Net Income

A

Single-step

56
Q

There are several steps needed in order to arrive at the company`s net income.

A

Multi-step

57
Q

Format of the Income Statement

A

Single-step
Multi-step

58
Q

Format of the Balance Sheet

A

Account Form
Report Form

ABM (1 decks)

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