The Accounting Cycle
Reporting Financial Performance
Accounting Processes
The Adjusting Process
Fraud and Internal Control
100
Lists all accounts and their respective debit or credit balances
What is trial balance?
100
Reports the results of operations as net income or loss for a period of time
What is income statement?
100
Tabular, chronological record where business activities are captured in debits and credits
What is general journal?
100
Adjusting occurs when
What is before financial statements are prepared?
100
Known also as the Public Company Accounting Reform and Investor Protection Act of 2002
What is Sarbanes - Oxley Act of 2002?
200
Trial Balance is prepared when
What is the end of accounting period but before financial statements are prepared?
200
Results from increases in net assets
What is revenue?
200
Listing of all accounts and their balances
What is general ledger?
200
Allocate earned portion of unearned revenues to revenue to reflect revenues earned in the period
What is deferred (unearned) revenues?
200
Quasipublic institution to oversee and regulate auditing
What is Public Company Accounting Oversight Board (PCAOB)?
300
Classifies transactions as operating, investing, or financing activities
What is statement of cash flows?
300
Results from decreases in net assets
What is expenses?
300
Recording a transaction in a journal
What is journalize?
300
Allocate used or expired assets to expense to reflect expenses incurred in the period
What is deferred (prepaid) expenses?
300
Different individuals responsible for related activities
What is segregation of duties?
400
Provides a chronological record of all transactions
What is a journal?
400
Revenues - expenses=
What is net income?
400
Occurs after transactions are journalized
What is posting?
400
Record revenues to reflect revenues earned in the period that are not yet received in cash or recorded
What is accrued revenues?
400
Records periodically verified by an employee who is independent
What is independent internal verification?
500
Format used for recording transactions
What is a journal entry?
500
Revenues - cost of goods sold =
What is gross profit?
500
Transferred to their related general ledger accounts
What are debits and credits?
500
Record expenses to reflect expenses incurred in the period that are not yet paid in cash or recorded
What is accrued expenses?
500
Bond employees who handle cash and conduct background checks are examples of this
What human resource controls?
M
e
n
u