Understanding Accounting and Financial Information (17 L.S.) Flashcards Preview

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Flashcards in Understanding Accounting and Financial Information (17 L.S.) Deck (49)
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1

The Red Cross in a non-profit which would most likely require the services of which type of accountant?

Public or private accountant

2

Financial ____ such as income statements and balance sheets indicate a firm's financial heath and stability.

Statements

3

What are some benefits of using computers for accounting purposes?

-Software can help if no strong accounting support is available
-Information can be posted from journals instantaneously
-Computers can handle large amounts of financial information

4

List the steps in the accounting cycle from the beginning to end.

1- Analyze source documents
--Sales slips, travel records, ext.
2-Record transactions in journals
3-Transfer (post) journal entries to ledger
4-Take a trail balance
5-Prepare financial statements
-Balance Sheet
-Income Statement
-Statement of cash flows
6-Analyze financial statements

5

The ____ ____ is the yearly statement of the firm's financial condition, progress, and expectations provided to the stakeholders.

Annual Report

6

The formula for the costs of goods sold is:

Purchase Price + freight charges + storage costs

7

Accounting

Classifying, summarizing, interpreting, and reporting

8

Bookkeeping

Recording

9

Accounting cycle

Series of six steps:
1- Analyze source documents
--Sales slips, travel records, ext.
2-Record transactions in journals
3-Transfer (post) journal entries to ledger
4-Take a trail balance
5-Prepare financial statements
-Balance Sheet
-Income Statement
-Statement of cash flows
6-Analyze financial statements

10

Trial balance

Summary of dada in ledgers

11

Advantages of using computers to maintain and compile accounting information:

-Speed
-Handle large amounts of data

12

Which is an example of an accounting software package:
-Excel
-DecisionTree
-MRP
-Quickbooks

Quickbooks

13

Accounting provides ____ _____ that are critical to understanding the health of a business.

financial statements

14

Which will be found on an income statement:
-operating expenses
-assets
-net income
-liabilities
-cost of goods sold
-revenue

-operating expenses
-net income
-cost of goods sold
-revenue
NOT
-assets
-liabilities

15

Net income or Net loss

Resources (revenue) left over or depleted

16

Income statement

a financial statement that shows a firm's bottom line - that is, its profit after costs, expenses, and taxes

17

The statement of cash flows is a financial statement that shows...

Cash receipts and disbursements

18

Statement of cash flows consists of three major activities:

Operations
-transactions that will be done/finished within the year
Investments
-Cash used for investing activities
Financing
-taking on new debt, equity capital to pay business expenses, past debts, company dividends

19

The Financial Accounting ____ _____ defines the generally accepted accounting principles.

Financial Accounting Standards Board (FASB)

20

Computerized _____ programs post information from journals instantaneously so that financial information is readily available.

Accounting

21

Which of the following is considered to be a part of accounting?
-Classifying financial transactions
-Changing financial transactions
-Interpreting financial transactions
-Recording financial transactions

-Classifying, interpreting, recording, and summarizing financial transactions

22

The ____ line is another name for net income after taxes.

Bottom

23

Financial statement that shows the firm's profit after costs, expenses, and taxes.

Income statement

24

Type of ratio that measures how effectively a firm is using its various resources to achieve profits.

Profitability

25

Government and non-profit accounting involves working for organizations whose purpose is to serve...

-ratepayers
-taxpayers
-others according to a duly approved budget

26

A tax accountant has specialize and learned tax ____ and is responsible for preparing tax returns.

tax LAW

27

The key working areas of accounting include:

-managerial
-financial
-auditing
-tax
-governmental and non-for-profit

28

Managerial accounting is used to provide information...

inside the firm to make the best financial desisions

29

Managerial accounting is used to provide information...

inside the firm to make the best financial desisions

30

____ accounting is used to provide information to managers within the organization to assist them in making decisions.

Managerial Accounting