The Income Statement
Another name for the Income Statement?
What is the Earnings Statement/Statement of Income & Expenses/Profit & Loss?
The accounting equation.
What is Assets = Liabilities + Owner's Equity
This company is the premier source of business data and information and maintains more than 265 million records about difference businesses around the globe.
Who is Dun & Bradstreet
When a company reports sales and profit figures that are higher than actual results.
What is accounting fraud? (cooking the books)
These have been developed to provide an accepted set of guidelines and practices for U.S. companies reporting financial information and the accounting profession.
What are GAAPs?
The formula for Net Income.
What is Revenues - COGS - Operating Expenses?
Examples are cash, inventory, equipment, and real estate.
What are assets?
Numerical or verbal descriptions that usually result from some sort of measurement.
What is data?
To help ensure that corporate financial information is accurate and to prevent the type of accounting scandals that have occurred in the past, Congress enacted this.
What is the Sarbanes Oxley Act?
This type of accounting provides managers and employees within the organization with the information needed to make decisions about a firm’s financing, investing, marketing, and operating activities.
What is managerial accounting? or also accepted...
What is Katie's favorite type of accounting?
When expenses exceed revenues.
What is a Net Loss?
Borrowed money a company owes to others that must be repaid.
What are liabilities?
When the amount of available information is high, managers tend to make better decisions. On the other hand, when the amount of information is low, there is a high risk of making a poor decision.
What is the relationship between information and risk?
Deloitte Touche Tohmatsu, PricewaterhouseCoopers (PwC), Ernst & Young, and Klynveld Peat Marwick Goerdeler (KPMG)
Who are the "Big Four" accounting firms?
Typically, stockholders, financial analysts, bankers, lenders, suppliers, government agencies, and other interested groups use the information provided by this type of accounting to determine how well a business firm has achieved its goals.
What is financial accounting?
One of the possibilities of items to be deducted from sales to get Net Sales.
What are sales returns, sales allowances, or sales discounts?
The process of apportioning the cost of a fixed asset over the period during which it will be used.
What is depreciation?
These are the “great simplifiers” for all decision makers.
What are information rules?
A full-time five-member public company accounting oversight board.
What is the Securities & Exchange Commission (SEC)?
This type of accountant is employed by a specific organization.
What is a private accountant?
Beginning inventory + Net Purchases - Ending Inventory
What is the formula for Cost of Goods Sold?
Examples are include patents, copyrights, trademarks and brands, and goodwill.
What are intangible assets?
To distribute timely and useful information from both internal and external sources to the managers and employees who need it.
What is the purpose of an MIS?
20 years and subject to fines.
What can happen to auditors, accountants, and employees for destroying financial documents and willful violations of the securities laws?
A system in which each financial transaction is recorded as two separate accounting entries to maintain the balance shown in the accounting equation.
What is the double-entry bookkeeping system?