Balance sheet act
THREE COMPONENTS THAT MAKE UP THE BALANCE SHEET
ASSETS, LIABILITIES, AND OWNERS EQUITY
THESE ASSETS CAN BE TURNED INTO CASH SHORTY
CURRENT ASSETS
MONETARY GOODS THAT A FIRM HAS ON HAND THAT CAN BE TURNED TO CASH
Inventory
PATENTS, COPYRIGHTS, AND TRADEMARKS ARE EXAMPLES OF THIS TYPE OF ASSET
Intangible
THIS “FIXED” (THREE-WORD ) TERM IS ANOTHER WAY TO IDENTIFY FACILITIES NECESSARY FOR COMPANY OPERATIONS
WHAT IS PROPERTY, PLANT, AND EQUIPMENT
THIS IS THE DIFFERENCE BETWEEN REVENUE AND THE COSTS INCURRED TO THE COMPANY
Net income
TAXES ARE REFERRED TO THIS TYPE OF COST. HINT: OPERATING OR NON-OPERATING
Non-operating
FILL IN THE BLANK: THIS TYPE OF EXPENSE INCLUDES SALARIES - SALES, ____, AND ADMINISTRATIVE
General
THIS IS THE “NASTY“ OUTCOME OF SUBTRACTING REVENUE FROM COST OF GOODS SOLD
Gross profit
$20 COLLECTED FROM GIVING A HAIRCUT COUNTS AS EITHER: A) REVENUE OR B) GROSS PROFIT
Revenue
MEASURES A FIRMS PROFITABILITY, OR IN OTHER WORDS, ABILITY TO TURN RESOURCES INTO INCOME
Profitability ratio
THIS IS THE AMOUNT OF MONEY EARNED PER SHARE OF OUTSTANDING STOCK
Earnings per share
FILL IN THE BLANK: RETURN ON EQUITY =NET INCOME/______X100
Owners equity
THIS RATIO MEASURES A FIRMS ABILITY TO PAY SHORT TERM BILLS
Liquidity
THE ACCOUNTING EQUATION
ASSETS = LIABILITIES + OWNERS EQUITY
THIS ORGANIZATION DETECTS AND PREVENTS ACCOUNTING FRAUD IN THE USA
SEC
THIS U.S. BASED BOARD HELPS CARRY OUT SEC DUTIES
Financial accounting standards board
THIS IS THE COUNTRY WHERE GAAP PRINCIPLES ARE FOLLOWED
Usa
TRUE OR FALSE? THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ARE BASED ON A CLEAR SET OF RULES?
False
THIS “ACCOUNTING FOUNDATION” APPOINTS THE FASB
Financial
THESE ARE THE THREE STATEMENTS USED TO REPORT PUBLIC COMPANY’S FINANCIAL RECORDS
Balance sheet, income statement, statement of cashflows
THIS JOB REQUIRES PASSING A FOUR SECTION EXAM
Cpa
THIS TYPE OF ACCOUNTING HELPS COMPANIES UNDERSTAND THE COSTS OF PRODUCTION
Cost accounting
THIS TYPE OF ACCOUNTING FOCUSES ON THE NEEDS OF EXTERNAL STAKEHOLDERS
Financial
THIS TYPE BUDGET PROJECTS REVENUE, AS WELL AS COSTS REQUIRED TO MEET SALES PROJECTIONS
Operating budget