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ACCT Test 1 Chapter 4
J.C. Park
22
Accounting
Undergraduate 2
08/27/2012

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Cards

Term
The _______ ________ indicates the financial position of the firm at a particular point in time.
Definition
Balance sheet
Term
Balance sheet illustrates the basic ________ _______ on a specific date.
Definition
accounting equation (assets = liabilities + stockholders equity)
Term
Most firms have interim accounting periods, often ________ for internal information purposes and ________for external reports.
Definition
Monthly and quarterly
Term
A firm ends its year at the end of its financial or ______ ________.
Definition
fiscal year
Term

T/F

A firm may pick a fiscal year-end that is different from the calendar year.

Definition
True
Term
Factor for picking a fiscal year-end.
Definition

Firm's inventory cycle.

how busy the accounting and bookkeeping staff is at different times of the year.

find a time when accounting functions are at a slow point.

Term
________ assets are cash or will become cash or be used up within a year.
Definition
Current
Term
_______ liabilities are obligations that must be pais within a year.
Definition
current
Term
Long term assets are broken into several groupings.
Definition

Fixed assets (sometimes referred to as capital facilities) represent the firm's property, plant, and equipment.

Investments are primarily securities purchased with the intent to hold on to them as a long-term investment.

Term
A firm also has obligations due more than a year from the balance sheet date. These are termed _____ ______ _______.
Definition
Long term liabilities.
Term
Stockholders' equity consists of ________ ______ and _______ ________.
Definition
Contributed capital and retained earnings.
Term
__________ capital represents the amounts that indviduals have paid directly to the firm in exchange for shars of ownership such as common or preferred stock.
Definition
Contributed
Term
________ earnings represent the portion of the income that the firm has earned over the years that has not been distributed to the owners in the form of dividends.
Definition
Retained
Term
Retained earnings represent a clam on a portion of the firm's assets (such as ________ and ________) and are not an asset themselves.
Definition
buildings and equipments
Term
The ________ _______ compares the firm's revenues to its expenses.
Definition
Income statement
Term
________ are the mones the firm has received or is entitled to receive in exchange for goods and services.
Definition
Revenues
Term
_________ are costs incurred in order to generate revenues.
Definition
Expenses
Term
_____ ________ is the difference between revenues and exenses.
Definition
net income
Term
The _______ _______ statement provides information about the firm's cash inflows and outflows.
Definition
Cash flow
Term
________ Accounting: record revenue when cash is received from customers and expenses when cash is paid to acquire resources.
Definition
Cash
Term
______ Accounting: record revenue when goods or services have been provided and the organization is entitled to be paid; record expenses in the same period as the revenues they help to generate (matching)
Definition
Accrual
Term
________ provides a better understanding of how profitable the organizations activites are, and is les subject to manipulation.
Definition
Accrual
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