Accounting 120 Flashcards

Terms Definitions
contributed capital
stockholders equity
income taxes payable
current liability
EBITDA
Net Income- Interest, Tax, Depreciation, Amortization
Working Capital
Current Assets-Current Liabilities =
business
an occupation, profession, or trade:
What is FASB?
Financial Accounting Standards Board
control decisions
decisions relating to motivating, monitoring, and evaluating performance
liability
A? L? or OE? accounts payable
Temporary Accounts
Revenue, Expense, and Dividend accounts whose balances a company transfers to Retained Earnings at the end of an accounting period
If Overhead was Underapplied
ADD TO COGS
Financial statements
Financial reports that summarize the financial condition and operations of a business
business entity
Exists independently of its owner's personal holdings; The accounting records and reports are maintained separately and contain financial information related only to the business
Fixed Costs
remain constant regardless of activity levels (within relevant range)
Financial Ratio
Comparison between two items of financial information
balance sheet
a financial statement that reports assets, liabilities, and owner's equity on a specific date
Worksheet
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements
Four Basic Financial Statements
Income Statement
Retained Earnings Statement
Balance Sheet
Statement of Cash Flows
Ethics
A code of conduct that addresses whether everyday actions are right or wrong.
Historical Cost
the actual amount paid for merchandise or other items bought is recorded
T account
An accounting device used to analyze transactions
petty cash
fund of currency and coin established for the payment of small amounts of money. one would establish this by debittng petty cash and credittng the cash
general ledger
A ledger that contains all acounts needed to prepare financial statements
Owner's equity
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
Production Budget
Estimates number of units to be manufactured to meet budgeted sales and desired inventory levels
margin of safety
the difference between current sales revenue and the sales at the break-even point
All assets directly used to produce goods and services. Total assets minus financial assets= ____.
Real assets
Solvency Ratios
These ratios help determine whether a company can survive and thrive in a long-term scenario
Bond
promise to pay face value on maturity date and pay, or accrue, interest each period until maturity date
sales invoice
an invoice used as a source document for recording a sale on account
Base Budgeting
Gives each subunit a base package to survive and managers then request additional funding
interest coverage ratio
ratio of income from operations to interest expense. measure the number of times that operating income can cover interest expense
net pay
the total earnings paid to an employee after payroll taxes and other deductions
relevant range
the band of volume where total fixed costs remain constant and the variable cost per unit remains costant
Capital Stock
The total shares of ownership in a corporation.
(COGS)
(COGS) Cost of Goods Sold - Cost of items or services sold to your customers.
increase in assumed annual compensation increase
would increase the pension obligation
Chart of account
A list of accounts used by a business
federal unemployment tax
a federal tax used for state and federal administrative expenses of the unemployment program
Sinking Fund Bond
assets used to repay bonds at certain dates
terms 2/10, n/30
2 percent discount if paid within 10 days, no discount if paid by end of month
past service cost (IFRS)
increase in pV of estimated pension obligation that results from changes to the terms of a pension plan
Cashier's Check
A check drawn by a bank on its own funds and signed by the cashier. A check which carries the guarantee of the drawee that sufficient funds are available to pay the check when it is properly presented
lists of all creditors in the accounts payable ledger, the balance in each account, and the total amount owed
schedule of accounts payable
Cons of Debt Financing
There is a chance of the company having to default on its debt obligations
Agency funds can be accounted for within
govn't or enterprise funds (unless specifically required by law, gasb, governing board)
Another term for the face value of a bond is:
A) principal.
B) maturity value.
C) par value.
D) all of the above.
D) all of the above
What is a way to show attributes without using bubble symbols?
by creating a seperate table that lists the attributes for each entity. This table is a list of attributes thats part of the E-R diagram.
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