Exam 1 Financial Accounting Flashcards Preview

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Flashcards in Exam 1 Financial Accounting Deck (31):
1

Cost

Actual money paid

2

Partnership

Owned by 2 individuals or more
Liable to creditors

3

What does GAAP stand for

Generally Accepted Accounting Principles

4

What are the 2 Ethics of Accounting?

Relevant Information
Reliable Information

5

What is on the left side of a t account?

Debit

6

What 2 things does paid in capital consist of?

Common Stock
Retained Earnings

7

Retained Earnings =

Beginning Balance + Net Income or - Net Loss - Dividends = End Balance

8

Net Income

Revenue- Expenses = profit or loss

9

What are the 4 forms of business?

Proprietorship
Partnership
Corporation
Limited Liability

10

What are the 4 users of accounting?

Individuals
Investors / Creditors
Taxes
Non Profit

11

Going Concern

Continue indefinitely

12

Entity

Separate

13

What is the lengthier accounting equation?

Assets = Liabilities + Common Stock - Dividends - Revenue + Expenses

14

What is on the right side of the t account?

Credits

15

What 3 things are increased by credit? (LCR)

Liabilities
Common Stock
Revenue

16

Accounting Equation

Asset = Liability + Capital

17

What 3 things are increased by debits?(ADE)

Assets
Dividends
Expenses

18

What does FASB stand for?

Financial Accounting Standards Board

19

Reliability

Objective Evidence

20

Accounting System consists of which 4 things (MAPC)

Measuring activities
Accounting used to make decisions
Processes Data
Communicates Decisions

21

Asset

Something of value that has a future benieft

22

Limited Liability Company

Not liable

23

FASB states that accounting should be what 4 things?

Relevant
Reliable
Comparable
Consistent

24

Who was GAAP created by?

FASB

25

Proprietorship

Owned by 1 individual
Liable to creditors

26

Corporation

Stockholders not liable
Has a state charter

27

Monetary Unit

U.S. Money

28

Statement of cash flow consist of what 3 things?

Operating income
Investing
Financing

29

Operating income =

Revenue - Expenses + Depreciation

30

Investing

The purchase or sale of a fixed asset

31

Financing

Repurchasing or issuing stocks and bonds

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