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Financial Statement Flashcards

(88 cards)

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1
Q

output of the the financial accounting process

A

Financial Statement

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2
Q

aka “Balance Sheet”

A

Financial Statement

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3
Q

The Financial Statement provides info about the company’s current

A

State of Liquidity, Solvency, Flexibility, and Financial Structure

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4
Q

What are the components of the Statement of Financial Position

A

Asset, Liabilities, and Equities

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5
Q

resources controlled by an entity as a result of past transactions and events and from with future economic benefits are expected

A

Assets

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6
Q

indicates that a company cannot assume authority over the asset before transaction has happened

A

“a result of past transaction and event”

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7
Q

information must be reliable and verifiable

A

Principle of Objectivity

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8
Q

asset could be directly or indirectly contribute to the cash inflows of the entity

A

“future economic benefits”

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9
Q

purchase cost of the asset is used as a fundamental basis for its measurement

A

“reliable basis for the measurement”

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10
Q

2 classifications of Asset

A

Current and Non-current

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11
Q

cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period

A

Current Asset

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12
Q

entity holds this component’s classification primarily for the purpose of trading (selling)

A

Current Asset

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13
Q

accounts should be recorded at its original cost

A

Cost Principle

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14
Q

“set aside for future use”

A

“not restricted”

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15
Q

entity expects to realize ____ within 12 months after the reporting period

A

Current Asset

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16
Q

entity intend to sell or consume ___ within the entity’s normal operating cycle

A

Current Asset

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17
Q

what are the 4 definitions of Current Assets

A
  1. not restricted 12 months after reporting period
  2. used for the purpose of trading (selling)
  3. realized within 12 months after reporting period
  4. intend to sell or consume within entity’s normal operating cycle
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18
Q

the time an entity gives out cash for purchase of their inventory, until they can collect payment from customers after selling the inventory

A

Normal Operating Cycle

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19
Q

5 general accounts of Current Assets

A
  1. Cash and cash equivalents
  2. Trade and other Receivable
  3. Other Short-term investments
  4. Merchandise Inventory
  5. Prepaid Expenses
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20
Q

Cash on Hand

A

Cash

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21
Q

Cash in Bank

A

Cash

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22
Q

Petty Cash Fund

A

Cash

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23
Q

Certificate of Deposit

A

Cash Equivalents

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24
Q

Banker’s Acceptance

A

Cash Equivalents

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25
Commercial Paper
Cash Equivalents
26
Treasury Bills
Cash Equivalents
27
Money Market
Cash Equivalents
28
"realize"
is converted to cash
29
Accounts Receivable
Trade and other Receivables
30
Notes Receivable
Trade and other Receivables
31
Advances to Employees
Trade and other Receivables
32
Accrued Income
Trade and other Receivables
33
Marketable Securities
Other Short-term Investments
34
Prepaid Rent
Prepaid Expenses
35
Prepaid Insurance
Prepaid Expenses
36
Prepaid Advertising
Prepaid Expenses
37
Supplies
Prepaid Expenses
38
do not meet the criteria for current assets
Non-current Assets
39
tangible assets held by an entity for use in production or supply of goods and services, for rental to others, or for administrative purposes, and are expected to be used during more than one period
Non-Current Assets - Property, Plant, and Equipment
40
Land
Property, Plant, and Equipment
41
Building
Property, Plant, and Equipment
42
Machinery
Property, Plant, and Equipment
43
Vehicle
Property, Plant, and Equipment
44
Equipment
Property, Plant, and Equipment
45
Furniture and Fixture
Property, Plant, and Equipment
46
asset held by an entity for the accretion of wealth through capital distribution such as interests, royalties, dividends, and rentals
Non-current Assets - Long-term Investment
47
the cost of money borrowed from a lender
Interest
48
what a lessee pays to a lessor for the use of any rights, copyrights, franchises or any such asset
Royalties
49
the distribution of some of a company's earnings to a class of its shareholders
dividend
50
a property lent for a temporary time in exchange for profit
rentals
51
identifiable non-monetary asset without physical substance
Non-current Asset - Intangible asset
52
type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks
Franchise
53
an amortizable, intangible asset that grants a business the sole right to manufacture and sell an invention
Patent
54
an amortizable, intangible asset that is used to secure the legal right to publish a work of authorship
Copyright
55
nonphysical item granting a business the legal right to exclusively use a logo or other item
Trademark
56
an intangible asset that accounts for the excess purchase price of another company
Goodwill
57
5 sample accounts of Intangible Assets
Franchise, Patent, Copyright, Trademark, Goodwill`
58
present obligations of an entity arising from past transactions and events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits
Liabilities
59
represented the duty of the company to settle the liability through payment of cash, other assets, or performance of services; company's capacity to pay
"present obligation"
60
outflow of resources embodying economic benefits
payment of the obligation should require the company to give up something that has value on its part
61
payment must be from the business and not personally
Accounting Principle
62
2 classifications of Liabilities
Current and Non-current Liability
63
entity expects to settle the ___ within the entity's normal operating cycle
Current Liabilities
64
entity holds the ___ primarily for the purpose of trading (buying)
Current Liabilities
65
the ____ is due to be settled within 12 months after the reporting period
Current Liabilites
66
entity does not have unconditional right to defer the settlement of the ____ for at least 12 months after the reporting period
Current Liabilites
67
Accounts Payable
Current Liabilities - Trade and Other Payables
68
Notes Payable
Current Liabilities - Trade and Other Payables
69
Tax Payable
Current Liabilities - Trade and Other Payables
70
Loans Payable (12 months or less)
Current Liabilities - Trade and Other Payables
71
Advances from Customers
Current Liabilities - Trade and Other Payables
72
Accrued Expense
Current Liabilities - Trade and Other Payables
73
Unearned Revenue
Current Liabilities - Trade and Other Payables
74
7 Accounts of Trade and Other Payables (Current Liabilities)
1. Accounts Payable 2. Notes Payable 3. Tax Payable 4. Loans Payable (12 months or less) 5. Advances from Customers 6. Accrued Expense 7. Unearned Revenue
75
liabilities that do not meet the criteria for current liabilites
Non-current Liabilities
76
4 definitions of Current Liabilities
1. entity expects to settle the liability within normal operating cycle 2. primarily for the purpose of trading (buying) 3. due to be settled within 12 months after the reporting period 4. entity does not have unconditional right to the settlement of the liability
77
3 accounts under Non-current Liabilities
1. Mortgage Payable 2. Loans Payable (more than 12 months) 3. Bonds Payable
78
the liability of a property owner to pay a loan that is secured by property
Mortgage Payable
79
a liability account that contains the amount owed to bond holders by the issuer
Bonds Payable
80
the residual interest in the asset of the entity after deducting all of its liabilites
Equity or Capital
81
aka Net Assets or Net Worth
Equity or Capital
82
Other name of Equity or Capital for Sole Proprietorship
Owner's Equity
83
Other name of Equity or Capital for Partnership
Partner's Equity
84
Other name of Equity or Capital for Corporation
Stockholder's Equity
85
capacity of the company to pay for its currently maturing obligation; the company has enough current assets to settles for its current liabilities
Liquidity
86
ability of the company to pay for its long-term obligations
Solvency
87
shows the composition of the claims over the assets of the company; provides insights whether the assets of the company are financed more from creditors or the company's equity
Financial Structure
88
shows insights as to the capacity of the company to adapt various circumstanced; grab opportunities or to adjust in possible unfavorable situations
Flexibility

ACC O2 (1 decks)

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