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Financial Accounting > Midterm - Accounting > Flashcards

Midterm - Accounting Flashcards

1
Q

Accounts Payable (A/P)

A

expenses that a business has incurred but has not yet paid

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2
Q

Accounts Receivable (A/R)

A

money thats flowing into a business thats not received yet

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3
Q

Accrued Expense

A

an expense that the business has incurred but has not yet paid

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4
Q

Asset

A

own

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5
Q

Equity

A

worth

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6
Q

Revenue

A

incoming money (increase in assets or decrease in liability)

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7
Q

Cash Flow

A

movement of the money you receive and the money you spend

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8
Q

Common Stock (C/S)

A

ownership exchange for cash

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9
Q

Retained Earnings (R/E)

A

leftover net income that goes into shareholders equity

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10
Q

Notes Payable (N/P)

A

a written promise made by the business to pay a debt, usually involving interest, in the future

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11
Q

Creditors

A

lend financial resources to businesses (bank)

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12
Q

Interest

A

the cost of borrowing money

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13
Q

Investors are Called

A

stockholders

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14
Q

Liability

A

the obligations a business has

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15
Q

Investors

A

provide financial resources in exchange for ownership interests in businesses

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16
Q

Stockholders Equity

A

the businesses commitment to the stockholders

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17
Q

Expense

A

an economic sacrifice a business incurs in the process of generating revenue

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18
Q

Dividend

A

the distribution of assets generated through earnings

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19
Q

General Ledger

A

the complete collection of a company’s accounts

20
Q

Income Statement

A

matches revenue (benefits) with the expenses (sacrifices) that were incurred to generate revenue

21
Q

Net Loss

A

when expenses are greater than revenue

22
Q

Net Income

A

revenues exceeds expenses

23
Q

Balance Sheet

A

the accounting equation

24
Q

Liquidity

A

is measured by how fast an asset can be converted into cash

25
Q

Statement of Cash Flows

A

how a company obtained and used cash during accounting period

26
Q

Permanent Account

A

balance sheet account

27
Q

Temporary Account

A

revenues, expenses and dividends are held here

28
Q

Salaries Payable

A

what you owe your employees but not have yet paid

29
Q

Period Costs

A

the period when selling and administrative costs are incurred

30
Q

Selling and Administrative Costs

A

costs that are not included in inventory

31
Q

Product Costs

A

the inventory costs

32
Q

Cost of Goods Sold (COGS)

A

the inventory and expense account

33
Q

Gross Margin/Gross Profit

A

the difference between the sales revenue and the cogs

34
Q

Shrinkage

A

decreases in the inventory due to customers (shoplifters, stolen inventory or misplaced inventory)

35
Q

Gain

A

the difference between the sales price and the cost of the land

36
Q

Debit

A

an entry recorded for a payment made/owed

37
Q

Credit

A

entry records decrease in assets or increase in liability, decrease in expense, increase revenue

38
Q

FOB

A

freight on board

39
Q

FOB Shipping Point

A

buyer (buyer pays for shipping)

40
Q

FOB Shipping Destination

A

seller (seller pays for shipping)

41
Q

Seller =

A

expense

42
Q

Inventory Buyer =

A

inventory account (cost of shipping that goes to shipping)

43
Q

Operating Income

A

amount of income that is generated from the normal recurring operations of a business

44
Q

Single-Step Income Statements

A

revenues - expenses

45
Q

Multi-Step Income Statement

A

income statements that show additional relationships

46
Q

Net Sales

A

also known as sales discounts

47
Q

GAAP

A

General Accepted Accounting Principle

Financial Accounting (4 decks)

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