Accounting Final Exam 2 Flashcards

Terms Definitions
Simple to establish
                        Shared Control
                        Broader skills and resources
                        Tax advantages
Property, Plant, & Equipment
service-sector companies
provide services (intangible products)
Planning, recording, analyzing, and interpreting,financial information.
The constraint of determining whether an item is large enough to likely influence the decision of an investor or creditor.
a business activity that changes assets, liabilities, or owner's equity
qwe, debts and obligations, creditors claim on assets
An independent intermediary to help ensure that management is properly applying GAAP to the companies financial statements.
Average Collection Period
365 Days/Receivables Turnover Ratio
BE point in units
=Fixed Expenses/Contribution Margin per unit
Purchase Discount
Cash discount offered by the buyer
accounting records
organized summaries of a business's financial activities
Period cost
Costs that aren't production costs (sales commission and rental costs of admn offices)
File Maintenance
the procudure for arranging accounts in a general ledger, assigning account numbers, and keeping records current
direct costs
Costs that are specifically traceable to a unit of business or segment being analyzed.
marketing managers
Trying to determine whether a marketing proposal will be cost effective.
retained earnings
cumulative income (and loss) not distributed as dividends
Treasury Stock
outstanding sotock that is repurchased by a company for later reissue, not an asset of firm but represents a reduction in stockholder's equity
Check Stub
A source of information for the journal
Tax Base
the maximum amount of earnings on which a tax is calculated
information is presented in such a way that a decision maker can recognize similarities, differences, and trends over different periods in one company or other companies.
long-term liabilities
Liabilities owed for more than a year
Accrued Revenues
Revenues earned but not yet received in cash or recorded at the staement date.
who are the beneficiaries of a defined benefit trust?
Schedule of Accounts Payable
Amount due to the vendors
Unearned Revenue
Cash received before a company earns revenues and recorded as a liability until earned
What is a factor?
Gross return or growth factor
responsibility accounting
dictates that a manager should be responsible for only items he or she can control
one who has made a sale is called a/an
manufacturing busicess
A business that buts rew materials and transforms them into finished procduts by using labor and machinery.
Sarbanes-Oxley Company Implication
Audit committee
No loans may be made to executives
Section 404 internal control audit required
Section 302 holds management responsible
adjusted trial balance
list of accounts and balances prepared AFTER 0adjusting entries have been recorded in ledger.
# of units x actual output
standard quantity of material
Comparative Condensed Income Statement
-beginning inventory
-cost of goods purchased
-cost of goods available for sale
-ending inventory
-gross profit
-operating expenses
-income before taxes
-income taxes
-net income
Promissory Note
written promise to pay a certain sum of money on a specific date
multiple step income statement
several steps in determining net income
Chart of Accounts
A list of accounts used by a business.
Trial Balance
a proof of the equality of debits and credits in a general ledger
Cash Debt Coverage Ratio
(Cash Provided by Operations) / (Avg Total Liabilities)
What is the Consistency Principle?
Requires use of same accounting methods period after period so the financial statements are comparable across periods.
Face Rate
Intrest rate printed on the face of a note or bond
Principle of a Note
Amount that the signer of a note agrees to pay back when it matures, not including interest.
Steps in the recording Process
1. Analyze each transaction for its effects on the accounts2. Enter the transaction information in a journal (book of original entry)3. Transfer the journal information to the appropriate accounts in the ledger (book of accounts)
one advantage of issuing bonds instead of stock is that
interest is tax deductible wheras dividends are not
what are the 3 items used in preparing statements of cash flows
comparative balance sheet
current income statement
additional info ( how the cash was provided/ used during period)
What is the First-Year Balance Sheet Initial Impact of Upward Revaluation of PPE (Under IFRS)?
(1) Increase in Carrying Value Of Property, Plant, And Equipment
(Because, this is a direct consequence of the upward revaluation of Property, Plant, And Equipment.)

(2) Increase in Stockholders' Equity
Because, an upward revaluation of Property, Plant, And Equipment is
credited directly to Stockholders' Equity (bypassing the Income
where we put cash and the uses and forms
is included on the statemnet of cash flows
/ 48

Leave a Comment ({[ getComments().length ]})

Comments ({[ getComments().length ]})


{[ comment.comment ]}

View All {[ getComments().length ]} Comments
Ask a homework question - tutors are online