Fundamentals Flashcards
(29 cards)
4 primary financial statements
-income statement
-Statement of RE:shareholders equity
-Balance sheet
-Statement of cash flows
Statement of cash flows
-operating
-investing
-financing
operating
-I/S items
-revenue
-expenses
-CA; cash
-CL
investing
-LTA
-Investments; land & building
financing
-LTL
-shareholder equity
common stock & RE
dividends
Top 4 accounting firms
(highest to lowest)
- Deloitte
- PWC
- Ernst & Young
- KPMG
contra accounts
-A/D buildings & equipment
-ADA
-discount
-premium
-treasury stock
balance sheet
assets=liabilities
income statement
rev-expenses = ni
on account
-accts receiveable
-accts payable
accts payable
money business owes suppliers
accts receivables
money coming in from customers
enron scandal
-fell in 2001
-fraudulent accounting practices
(rev regcognition, mark to market accounting, special purpose entities)
-ken lay founder first ceo
-jeff selling ceo during scandal
sarbanes oxley act
-makes harder for companies to commit fraud
-responsible for publicly traded comapnies
-sen; paul sarbanes
-rep; mike oxley
accounting rules
-GAAP
-financial accounting standard board (FASB) monitors GAAP
-securities exchange commission (SEC)
submit quarterly & financial statements
accounting rules international
International financial reporting standards (IFRS)
IMA
institute of management accountants
IMA ethics
honesty, fairness, objectivity and responsibility
competence
technical, knowledge, skills, expertise
confidentiality
protect personal identifiable information
integrity
“honesty is the best policy!”
credibility
communication early, often & clearly to up credibility & trust “trusted advisors”
do not ignore issues
seek out resolution
anon reporting system
whistleblowers
