Accounting 101

27 cards

Ivytech Southwest, Finanacial Accounting Class, Final Exam.


 
  
Created Dec 10, 2012
by
blondedude092

 

 
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  Side A   Side B
1
4 forms of buisness entities
 
coorperation, propriatorship, partnership, LLC
2
difinitions of revenues and expenses
 
revenues: income   expenses: cost
3
FASB
 
Financial Accounting Standard Board
4
accounting equation
 
assets = liabilities + equity
5
primary objective of of financial reporting
 
language of business and easy to communicate.
6
balence sheet lists:
 
assets, liabilities, and owners' equity for the specific date
7
income satement contains
 
revenues - expenses = net income (for a period of time)
8
assets are recorded at historical/original cost because
 
it is objective and verifiable
9
3 activities that businesses engage in
 
operating, invensting, and financing
10
how do transations affect the accouiting equation?
 
tetter totter balance
11
left side: and right side:
 
debits, and credits
12
double-entry accounting system
 
at least 1 debit and 1 credit have to balencew
13
difference between accounts recievable and accounts payable
 
account receivable is and asset while accouints payable is  liability
14
working capital = 
 
current assets - current liabilities
15
current ratio = 
 
current assets / current liabilities
16
liquidity is 
 
how fast it can be turned into cash
17
which asset is most liquid
 
cash
18
when is revenue recognized with respect to accrual accounting
 
when its earned
19
when is revenue recognized with respect to cah basis accounting
 
when you get the cash
20
when are adjusting entries required
 
when financail statements are prepared at the end of the year
21
why do we do closing entries
 
fresh start
22
what is a cash equibalent 
 
something that can be converted into cash within 90 days
23
can a foolproof internal control system be designed 
 
no
24
2/10, n/30
 
2% discount if paid in 10 days otherwise has to be paid in 30 days.
25
FOB destination and FOB shipping point mean
 
when goods leave dock and revenues are recognized
26
2 methods for accounting for bad debits are
 
allowance and direct writeoff
27
calculate net realizable value of accouints recievable
 
accounts recievable - allowance

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