General Principles
Financial Accounting
What is keeping the financial score for the entity?
Capital
What is investments by the stockholders?
Chart of Accounts
What is the "Accountant's Bible"--list of the names and account numbers for all accounts?
Balance Sheet
What is the financial statement that shows assets = liabilities + stockholders equity at a point in time?
Net Income Equation
What is Revenue-expense?
Cost
What is all cost are historical?
Dividend
What is the distribution of retained earnings to stockholders?
What is the list of all accounts showing that the total debits=the total credits?
Income Statement
What is the financial statement that matches revenue with expense over a period of time?
Unearned Revenue definition and classification
What is received cash, but have not yet rendered the goods and services?
What is a current liability?
Matching
What is match expenses with revenue in the period they occur.
Revenue
What is rendered goods and/or services with the expectation of payment?
Contra Account
What is an account used to keep the balance in another account visible?
Non-cash charges definition & Example
What is a deduction on the I/S, but no cash paid out?
What is depreciation, amortization, depletion, gain or loss on asset sale?
Book Value of an asset
What is original cost-accumulated depreciation?
Revenue Recognition
What is Earned: Rendered goods and services?
What is Recognized: Expectation of payment?
Retained Earnings
What is earnings retained in the business?
What is End RE=Beg RE + NIAT-Dividends?
Journal Entry to account for depreciation of $5,000 on equipment
What is
Dr. Depreciation Expense. $5,000
Cr.Accumulated Depr-Equip. $5,000?
Statement of Changes in Cash Position
What is the financial statement that shows difference between 2 B/S expressed in cash?
Market value of a company
What is the value paid by a willing buyer and willing seller?
Materiality
What is if you knew the fact, it could change your mind; 5% of something?
Are all assets and liabilities shown on the Balance Sheet?
What is No, they must be objectively quantifiable to be recorded on the B/S?
Adjusting Entry
What is an entry that reconciles a general ledger account to a backup schedule?
Cost of Goods Sold definition & formula
What is the cost of what is not there?
What is Beg. Inventory+net purchases-ending inventory?
"Capitalize It" vs. "Expense It" vs. "Write It Off"
Why is this distinction important?
Capitalize it; What is put the amount on the B/S (Generally, as an asset to be depr./amortized)
Expense it; What is "Write It Off"-deduct the amount on the I/S?
What is want net income to be correct