This and that!
A system for recognizing, recording, organizing, summarizing, analyzing, and reporting information about the financial transactions that affect an organization.
Accounting
summarizes a firm’s financial position at a specific point in time (i.e., a specific quarter or year).
Balance Sheet
This indicates whether a firm earned a profit or suffered a loss over the past accounting period.
Income Statement
This report shows the cash flowing in and out of a firm through its operating, investing, and financing activities.
Statement of cash flows
The major output of financial accounting is this set of statements.
balance sheet, income statement, and statement of cash flows.
___________ encompass the routine procedures involved in reporting information about the financial transactions that affect an organization, while accounting goes further by analyzing and interpreting this information and communicating the results to stakeholders.
Bookkeeping
An example of an asset.
Cash, Buildings, Inventory
Which of the following is not on an income statements: bank loans; wages payable; accounts payable; or cost of goods sold.
bank loans; wages payable; accounts payable
This should match the amount of cash at the end of the period, as reflected on the statement of cash flows
cash on the current balance sheet
Which of the following would be listed in the owners’ equity section of a balance sheet?
cash; accounts receivable; net income; retained earnings
Retained earnings
Managers, stockholders, employees, and _______ are all users of accounting information to assess a company’s finances.
Creditors
Total assets if liabilities are $130,000, and its owners’ equity is $170,000.
$300,000
This shows the cash flowing in and out of a firm through its operating, investing, and financing activities.
Income statement
The two pieces of information that are arguably the most important to any business.
cash flow--how and why it changes
These have been adppted by the accounting profession to guide the practice of financial accounting.
generally accepted accounting principles (GAAP)
As a _____ you work within an organization, preparing reports and analyzing financial information such as budgets and cost management.
management accountant
When reviewing a loan application, banks look here for the amount of outstanding debt the firm already has.
Balance Sheet
The difference between revenue and expenses.
Profit
In an annual report, these often disclose information about changes in accounting practices and about any special circumstances that had an impact on the firm’s financial performance.
Notes to the financial statements
The private, self-regulating, five-member board established to develop generally accepted accounting principles used in the practice of financial accounting.
FASB
_____ accountants provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis.
Public
Assets = Liabilities + Owners' Equity
Accounting equation
Which of the following items would be listed on an income statement? cost of goods sold; current liabilities; cash flows from operations; accounts receivable
Cost of goods sold
This process makes sure accounting and booking staff have a clear understanding of GAAP, reviews sales receipts and invoices as well as counts the supplies in inventory.
external audit
_____ addresses the needs of the external stakeholders, including stockholders, creditors, and government regulators.
Financial accounting