Term
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Definition
| What type of accounting focuses on external reporting |
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Term
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Definition
| Anyone to whom you owe money. |
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Term
1. Creditors
2. Investors and Advisors
3. The Government |
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Definition
| Who does financial accounting report to? (3) |
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Term
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Definition
| What type of accounting focuses on internal reporting? |
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Term
1. Reporting to Management
2. Budgeting |
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Definition
| Managerial accounting reports to ________ and is used for _________. |
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Term
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Definition
| What field of accounting includes taxes? |
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Term
1. Income
2. Excise
3. Property
4. Sales/Use
5. Estate/Death |
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Definition
| What are the 5 different types of taxes? |
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Term
1. Corporate
2. Partnership
3. Individual Laws |
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Definition
| What are the 3 types of income taxes? |
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Term
1. Gas
2. Alcohol
3. Tobacco |
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Definition
| What are 3 examples of things taxed by the government in what is known as an excise tax? |
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Term
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Definition
| Type of auditing done by someone who works for the company they are auditing. |
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Term
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Definition
| Which type of auditor finds ways to make a company they are auditing more efficient? |
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Term
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Definition
| Type of auditing done by CPA firms hired by comapnies. |
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Term
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Definition
| Type of auditor hired by a company to review accounting records. |
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Term
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Definition
| The two sub-parts of auditing. |
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Term
| Not-for-Profit Accounting |
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Definition
| Type of accounting used by charities, government, or any group or organization that is not for profit. |
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Term
| Generally Accepted Accounting Principles |
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Definition
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Term
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Definition
| Classification for things with probably future economic benefits or that provide money. |
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Term
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Definition
| Money in the bank, land, merchandise, inventory, and investments are examples of? |
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Term
| Historical Cost Principle |
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Definition
| Principle that states that assets must be reported in a financial statement called a balance sheet at their original cost. |
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Term
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Definition
| The idea that a businesses account records should be separate from it's owners personal account records. |
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Term
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Definition
| The term used for ignorning inflation. |
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Term
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Definition
| Principle that states that alternatives which are least likely to overstate assets and profits should be used. |
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Term
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Definition
| Another word for the significance of something. |
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Term
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Definition
| Aspect of materiality that deals with the relative dollar amount/size of something. |
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Term
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Definition
| Aspect of materiality that deals with the relative importance of an item/event. |
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Term
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Definition
| Real estate, buildings, cars, furniture falls in the quantitative or qualitative aspect when dealing with materiality? |
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Term
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Definition
| An employee strike or law suit falls in the quantitative or qualitative aspect when dealing with materiality? |
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Term
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Definition
Which two of these would not be reported?
1. An employee strike
2. Law suit
3. Small fire in janitor closet
4. Real estate
5. Buildings
6. Stapler
7. Cars
8. Furniture |
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Term
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Definition
| The assumption that all business entities we account for will have indefinite lives (profitable in the long run). |
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Term
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Definition
| Principle that states that companies use the same accounting method from year to year as to compare one year to another. |
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Term
| Full Disclosure Principle |
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Definition
| Principle that states that any data which influences the user of that data's decision then it should be disclosed. |
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Term
| Parenthetically Documented; Footnotes (narrative form) |
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Definition
| Two ways to make sure buisness decision influencing data is included which does not fall under other categories. |
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Term
| Periodicity (Time Period Assumption) |
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Definition
| This assumption states that we can divide time into reporting intervals at a minimum of one year. |
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Term
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Definition
| Concerning periodicity, franchise laws call for _____ reporting intervals. |
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Term
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Definition
| Any accounting period of 12 months. |
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Term
| Financial Accounting Standards Board |
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Definition
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Term
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Definition
| Who issues new GAAP (General Accepted Accounting Principles) and is not government affiliated? |
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Term
| Seven member board and staff. |
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Definition
| FASB contains ___ members and ____. |
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Term
| International Revenue Service |
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Definition
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Term
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Definition
| Who collects tax and enforces tax laws? |
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Term
| American Institute of Certified Public Accountant |
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Definition
| What does AICPA stand for? |
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Term
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Definition
| This governing body of accountants administer the CPA exam and are responsible for CPE (continued professional education). |
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Term
| Security and Exchange Commission |
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Definition
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Term
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Definition
| This organization oversees stock exchanges. |
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Term
Income Statements
Balance Sheet
Statement of Cash Flow
Statement of Returned earnings |
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Definition
| These four financial statements should be produced and included in companies yearly reports. |
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Term
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Definition
| Financial statement dealing with profit or loss; how successful were they? |
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Term
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Definition
| "Financial snapshot"; what the companies assets and liabilities are. |
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Term
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Definition
| Opposite of asset; financial obligations, debts, etc. |
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Term
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Definition
| Assets minus liabilities (shows whats left over). |
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Term
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Definition
| Financial statement which covers where the company's cash came from and how it was used. |
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Term
| Statement of Retained Earnings |
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Definition
| Financial statement of the profits kept and their reinvestment (share with stock holders or reinvest in company). |
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Term
Name of Company
Title of Financial Report
Date relevant to the report |
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Definition
| Three examples of every financial statement |
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Term
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Definition
| The inflow of assets resulting from the sale of goods or performance of a service; also interest on investments. |
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Term
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Definition
| On an income statement; total computer sales (selling price), consulting service, and investments are an example of _____. |
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Term
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Definition
| On an income statement; total cost of goods sold, selling expenses, and general administration expenses (salaries, tax, etc.) are an example of _______. |
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Term
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Definition
| Revenue total minus expenses total produces either _______ or _______. |
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Term
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Definition
| A the bottom of an income statement, $$ stands for ____. |
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Term
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Definition
| A the bottom of an income statement, ($$) stands for ____. |
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Term
1. The assets the company owns
2. Liabilities
3. Owners equity |
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Definition
| These three things are the contents of a balance sheet in that order. |
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Term
1. Current
2. Property, Plant, Equipment
3. Other Assets |
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Definition
| These three types of assets are listed on a balance sheet. |
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Term
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Definition
| All assets taht will be consumed within 12 months of the report. |
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Term
1. Cash
2. Temporary Investments
3. Accounts Receivable
4. Inventory
5. Prepaid Expenses |
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Definition
| Five common "current" assets. |
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Term
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Definition
| Stocks, bonds, and mutual funds are an example of ______. |
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Term
1. Tangible
2. Have long lives
3. Used in daily operations |
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Definition
| Property, Plant, and Equiment assets have these three things in common: |
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Term
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Definition
| All assets which are not current assets or PPE assets. |
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Term
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Definition
| A patent or copyright is an example of a/an _____ asset. |
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Term
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Definition
| And "other" asset; loan given to a customer, money not yet received. (isn't required in 12 months) |
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Term
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Definition
| Two types of liabilities. |
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Term
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Definition
| Any liabilities that must be satisfied/paid within 12 months of the given date. |
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Term
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Definition
| Accoutns payable, notes payable, accrued liabilities, and unearned revenue are examples of ______ liabilities. |
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Term
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Definition
| Bought goods or services in credit that still need to be paid. |
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Term
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Definition
| Document you sign when you borrow money; money owed on a note that's due within 12 months of the balance date. |
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Term
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Definition
| An incurred expense taht has yet to be paid off (interest on loans). |
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Term
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Definition
| Current liability; been paid in advance for goods/services. |
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Term
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Definition
| Any liability due beyond 12 months of the balance date. |
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Term
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Definition
| Money owed on a note that's due beyond 12 months of the balance date. |
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Term
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Definition
| Long term liability; money invested with 30 year terms. |
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Term
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Definition
| These are examples of long-term liabilities. |
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Term
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Definition
| This liability is dependant on the form of the business. |
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Term
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Definition
| Form of business which is the easiest, inexpensive, and most common. |
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Term
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Definition
| Form of business much like a sole proprietorship but with more than one owner. |
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Term
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Definition
| Form of business; big business, have the benefit of "limited liability". |
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Term
| LLC (Limited Liability Company) |
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Definition
| Form of business with all the advantageous traits of the other three types rolled into one form of business. |
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Term
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Definition
| Common stock and retained earnings are examples of ______. |
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Term
| Total Liabilities + Owners Equity |
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Definition
| Total assets MUST equal ______ + ______ for the balance sheet to balance. |
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Term
1. Operating Activity
2. Investing Activities
3. Financing Activities |
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Definition
| The three types of cash flows are: |
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Term
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Definition
| Collections from customers (income) and payment of wages (outflow) are examples of this type of cash flow. |
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Term
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Definition
| Stocks/bonds; property, plant and equipment (outflow); the sale of stock (inflow) are examples of this type of cash flow. |
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Term
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Definition
| Issuing stocks/bonds/notes (inflow) and repayment of debts (outflow) are examples of this type of cash flow. |
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Term
| Net Increase/Decrease of Cash |
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Definition
| The total on a cash flow financial report consists of. |
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Term
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Definition
| Comparing cash in the balance sheet from the beginning of the year to the amount of the cash you record at the end of the year will give you the _____________ of cash. |
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Term
| Statement of Retained Earnings |
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Definition
| This financial statment deals with adding income and subtracting dividends to the total value from the starting date of the financial statement. |
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Term
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Definition
| This processes contains 11 steps; accounting cycle. |
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Term
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Definition
| The first step of the accounting cycle is to _________, which requires you to look at each transaction and determine which specific accounts were affected, which were increased or decreased? |
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Term
ASSETS - Company's cash increased by $10,000
OWNERS EQUITY - Commons stock increased by $10,000 |
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Definition
If an owner invested $10,000 dollars in the company, what would the analysis of the transaction look like?
ASSETS - ?
OWNERS EQUITY- ? |
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Term
ASSETS - Company's cash decreased by $2000
EQUIPMENT - Company's equipment increased by $2000 |
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Definition
If a company paid $2000 for a laptop, what would the analysis of the transaction look like?
ASSETS -
EQUIPMENT - |
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Term
ASSETS - Company's cash decreased by $5000
NOTE PAYABLE - Company's notes payable decreased by $5000 |
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Definition
If a company paid $5000 principle to the bank, what would the analysis of the transaction look like?
ASSETS -
NOTE PAYABLE - |
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Term
| Posting journal entries to "General Ledger" |
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Definition
| The transfer of the journal entry to individual accounts to update account balances is known as. |
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Term
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Definition
| A listing of all the accounts and debit or credit balances; looks like a balance sheet, but it's an internal document; used to prove that debits=credits. |
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Term
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Definition
| Second step in the accounting cycle. |
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Term
| Posting Journal Entries to the "General Ledger" |
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Definition
| Third step to the accounting cycle. |
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Term
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Definition
| Fourth step of the accounting cycle. |
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Term
| Preparing Adjusting Journal Entries |
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Definition
| Fifth step to the accounting cycle. |
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Term
| Adjusting Journal Entries |
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Definition
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Term
1. Depreciation
2. Accruals
3. Deferrals |
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Definition
| Three things included in AJEs. |
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Term
| Post the AJE's to the Journal Ledger |
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Definition
| Sixth step to the accounting cycle. |
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Term
| Prepare the Adjusted Trial Balance |
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Definition
| Seventh step to the accounting process. |
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Term
| Post AJE's to the Journal Ledger |
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Definition
| This is done to update teh account balance; one of the accounting cycle steps. |
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Term
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Definition
| This is the same as a trial balance, but with the addition of AJE's. Proves debits=credits. Use to facilitate Financial Statement preparation. |
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Term
| Prepare Financial Statements |
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Definition
| Eigth step to the accounting cycle. |
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Term
| Prepare Closing Journal Entries (CJE's) |
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Definition
| Ninth step to the accounting cycle; closing out the prior period to start over again. |
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Term
| Post CJE's to the General Ledger |
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Definition
| Tenth step to the accounting cycle. |
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Term
| Prepare a "post-closing" trial balance to prove debit=credit. |
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Definition
| Eleventh step to the accounting cycle. |
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Term
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Definition
| The most important steps to the accounting cycle. |
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Term
1. Analysis of Transactions
2. Prepare Journal Entries
3. Posting Journal Entries to "General Ledger"
4. Prepare Trial Balance
5. Preparing Adjusting Journal Entries (AJE's)
6. Post the AJE's to the Journal Ledger
7. Prepare the Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Journal Entries
10. Post CJE's to the General Ledger
11. Prepare a "post-closing" trial balance to prove debit=credit. |
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Definition
| Eleven steps to the accounting cycle. |
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Term
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Definition
| Dollar sum of credit ____ equal the dollar sum of _____. |
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Term
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Definition
| One credit account to one ____ account in every journal entry. |
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Term
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Definition
| Adjusted Journal Entries ________ have transactions as their source. |
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Term
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Definition
| Journal entries ____ have a transaction as their source. |
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Term
1. Accruals
2. Deferrals
3. Depreciations |
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Definition
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Term
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Definition
| Required by GAAP; the adding together of interest or different investments over a period of time |
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Term
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Definition
| This states to record revenue when earned regardless of when payment is received. |
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Term
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Definition
| Type of revenue earned but not yet received. |
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Term
| Debits Increase, Credits Decrease |
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Definition
| In AJE's, Assets and Expenses do what in terms of debit and credit? |
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Term
| Debits Decrease, Credits Increase |
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Definition
| In AJE's: Liabilities, Revenues, and Owners Equity do what in terms of credit and debit? |
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