Corporations 10

Question 1

What does GAAP stand for?

Answer 1

Generally Accepted Accounting Principles

Question 2

GAAP: Generally Accepted Accounting Principles based on:
1.
2.
3.
4.

Answer 2

1. Recognition
2. Measurement
3. Presentation
4. Disclosure

Question 3

What does FAF stand for?

Answer 3

Financial Accounting Foundation; drafts, manages, and publishes the GAAP

Question 4

What does FASB stand for?

Answer 4

Establishes financial accounting and reporting standards for public and private companies and nonprofits.

Question 5

How many critical financial statements are there?

Answer 5

4

Question 6

Four critical financial statements, produced at ______ ___________ (__________, etc.)

Answer 6

regular intervals

quarterly

Question 7

Four critical Financial Statements produced at regular intervals (quarterly, etc):
1.
2.
3.
4.

Answer 7

1. Balance sheet
2. Income Statement
3. Cash Flow Statement
4. Statement of Stockholders Equity

Question 8

How much do you have in your bank account – profits, anything coming out, and you get net balance

Answer 8

Balance Sheet

Question 9

Simply statement of how much income the business is generating.

Answer 9

Income Statement

Question 10

Keeps track of how much influx of cash that you have at any given time

Answer 10

Cash Flow Statement

Question 11

____________: all of a corporation’s financial transactions summarized into different categories and subcategories on the financial statements.

Answer 11

Accounts

Question 12

Accounts: ____ of a corporation’s financial transactions summarized into different categories and subcategories on the financial statements.

Answer 12

all

Question 13

Accounts: all of a _________ ________ ________ summarized into different categories and subcategories on the financial statements.

Answer 13

corporation’s financial transactions

Question 14

Accounts: all of a corporation’s financial transactions _________ into different categories and subcategories on the financial statements.

Answer 14

summarized

Question 15

Accounts: all of a corporation’s financial transactions summarized into ________ ________ and _________ on the financial statements.

Answer 15

different categories

subcategories

Question 16

Accounts: all of a corporation’s financial transactions summarized into different categories and subcategories on the ________ _______.

Answer 16

financial statements

Question 17

Capital: ________

Pay operating expenses: employees, utilities, income taxes, real property for business to operate

Purchase inventory/ components for sale

Answer 17

Cash

Question 18

Capital: Cash
1. ?
2.
3.
4.
5.
6.

Answer 18

1. Pay operating expenses

Question 19

Capital: Cash
1.
2. ?
3.
4.
5.
6.

Answer 19

2. employees

Question 20

Capital: Cash
1.
2.
3. ?
4.
5.
6.

Answer 20

3. utilities

Question 21

Capital: Cash
1.
2.
3.
4. ?
5.
6.

Answer 21

4. income taxes

Question 22

Capital: Cash
1.
2.
3.
4.
5. ?
6.

Answer 22

5. real property for business to operate

Question 23

Capital: Cash
1.
2.
3.
4.
5.
6. ?

Answer 23

6. purchase inventory/ components for sale

Question 24

Corporation _____ _______.

Answer 24

sells inventory

Question 25

_________ sells inventory.

Answer 25

corporation

Question 26

________ obtains cash or accounts receivable (somebody owes money for inventory).

Answer 26

corporation

Question 27

Corporation obtains ______ or _____ ______(somebody owes money for inventory.)

Answer 27

cash accounts receivable

Question 28

_______ added to balance sheet (_____ balance increases).

Answer 28

cash cash

Question 29

Cash added to ______ ______(cash balance increases).

Answer 29

balance sheet

Question 30

Accounts receivable _______ _____.

Answer 30

collected on

Question 31

_______ ______ collected on.

Answer 31

accounts receivable

Question 32

________ or _______ _______ used to buy more inventory.

Answer 32

cash or accounts receivable

Question 33

Cash or accounts receivable used to ____ ____ _____.

Answer 33

buy more inventory

Question 34

Corporation is operating productively, and cash from inventory sale is generating a profit and _____ ____ ____ ____.

Answer 34

net positive cash flow

Question 35

______ _______ * Cash Balance Insufficient * Inventory Sale insufficient to satisfy capital needs

Answer 35

External Capital

Question 36

External Capital * ______ _____ _____ * Inventory Sale Insufficient to Satisfy Capital Needs

Answer 36

Cash Balance Insufficient

Question 37

External Capital * Cash Balance Insufficient * _______ _______ insufficient to Satisfy _____ _____.

Answer 37

inventory sale capital needs