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Flashcards in Chapter 3 Deck (30)
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1
Q

_____ Activities: Acquire capital from investors and creditors

A

Financial

2
Q

______ Activities: Invest in productive resources (ie. equipment)

A

Investing

3
Q

_____ Activities: generate wealth (manufacturing and selling tv sets)

A

Operating

4
Q

Assets=

A

Liability + Equity

5
Q

“Probable future economic benefits obtained or controlled by a business”

A

Asset

6
Q

Probable future sacrifice of future economic benefits

A

Liability

7
Q

Residual interest in the assets of a business that remains after deducting liabilities (Net assets, net worth)

A

Owners Equity

8
Q

Net Income =

A

Revenue - Expenses + Gains - Losses

9
Q

Revenue -Expenses + Gains - Losses=

A

Net Income

10
Q

increase in owner’s equity resulting from central operating activities

A

revenue

11
Q

decrease in owner’s equity resulting from central operating activities

A

expense

12
Q

increase in owners’ equity resulting from peripheral activities

A

gain

13
Q

decrease in owners’ equity resulting from peripheral activities

A

loss

14
Q

______ summarizes financial position as of a point in time:

A

Balance Sheet

15
Q

______ summarizes financial performance for a period of time

A

Income Statement

16
Q

______ summarizes cash inflows and outflows for a period of time

A

Cash Flow statement, bitch

17
Q

Net Cash Flows=

A

Operating +/- Investing +/- Financing net cash flows

18
Q

Cash Flows consumed or generated by sales of goods and services

A

Operating

19
Q

cash flows consumed or generated by acquisition or disposition of non-current assets

A

Investing

20
Q

Cash flows provided by or paid to capital providers

A

Financing

21
Q

The balance sheet and income statement are linked via

A

RETAINED EARNINGS BICHHHH!!!!

22
Q

Assets = Liabilities + CC + RE where CC= and RE=?

A
CC= Contributed Capital
RE= Retained Earnings
23
Q

Asset:

Debit or Credit?

A

Debit

24
Q

Expense:

Debit or Credit?

A

Debit

25
Q

Liability:

Debit or Credit?

A

Credit

26
Q

Equity:

Debit or Credit?

A

Credit

27
Q

Revenue:

Debit or Credit?

A

Credit

28
Q

Accrual Accounting:

A

reports on effects of events that ultimately have cash effect

29
Q

Cash Flow accounting:

A

Reports cash receipts and disbursements as they occur.

30
Q

Adjusting Entries are required for: (3)

A
  1. Recognizing revenue for the period
  2. Matching expenses with revenues they helped generate
  3. Adjusting entries are required every time financial statements are prepared to comply with GAAP