Types of Accounting
Refers to methods of capital generation and use, including investing, borrowing, lending, budgeting and forecasting.
What is managerial accounting?
True or False: Accrual Based Accounting Does Not Capture The Whole Picture.
False: Simple Cash Based Accounting Does Not Capture The Whole Picture.
The dollar amounts earned by a firm from selling goods, providing services, or performing business activities.
What are revenues?
“Successful people make decisions _____ and firmly. Unsuccessful people make decisions _____, and they change them often.”
― Napoleon Hill
What is "quickly" and "slowly"?
Two other types of accounting, other than financial and managerial accounting
What are Government, Tax, Book-keeping, Audit, Not-for-profit?
A major accounting method that recognizes revenues and expenses at the time cash is received or paid out.
What is Cash basis?
Balance Sheet Equation.
What is Assets = Liabilities + Owner's Equity
The cost to provide products and services
What is Cost of Goods Sold (COGS)?
Three key aspects of information that improves the decision-making process and reduces risk
What is informative, relevant, and high amount of it?
Target audience of financial accounting and an example.
What is external audiences, like auditors and potential investors?
The Internal Revenue Service (IRS) requires companies to utilize Accrual Accounting at this threshold.
What is sales over $25M?
The Income Statement Equation.
What is Revenue - Expenses = Profit or Loss?
Only about 50% of accountants in the United States are
What is actively licensed Certified Public Accountants (CPAs)?
The type of accounting that generates statements and reports for interested people outside of an organization, such as stockholders, lenders, and government agencies?
What is financial accounting?
The estimate of the number of years an asset is likely to remain in service for the purpose of cost-effective revenue generation.
What is useful life?
Obligations such as bonds, rent, utilities or salaries.
What are Liabilities?
Goal of the Income Statement
What is tell the story of profitability for a business?
The account that links from Income Statement to the Cash Flow Statement.
What is the Net Income?
The rules associated with managerial accounting
What is "less regulated"?
What is Accrual Accounting?
Key ratio to assess a company's reliance on debt.
What is the Debt-to-Equity Ratio?
2 Key Margins of the Income Statement.
What is Gross Margin and Profit Margin?
When making estimates, a financial accountant should estimate income lower and outflow higher.
What is the Conservatism Principle?