Jargon
GAAP
What are Generally Accepted Accounting Principles?
Sales Revenue - Cost of Goods Sold
What is the gross margin?
Company profits distributed to shareholders.
What are dividends?
The asset account in a company's ledger that is usually the most liquid.
What is a cash account?
A team of these professionals is in charge of counting out the ballots for the Oscars.
What are CPAs!
Oscar voting has been counted in this way since 1935 and the CPAs are the only ones who know the results before the winners are announced.
PCAOB
What is the Public Accounting Oversight Board?
Current assets / Current liabilities
What is the current ratio?
This government agency employs over 2,000 accounting specialists.
What is the FBI?
The allowance for doubtful accounts.
What is the contra account for accounts receivable?
The action of a company providing financial statements to a third-party for financial feedback.
What is financial auditing?
COGS
What is the Cost of Goods Sold?
Net Sales/Average Total Assets
What is Total Asset Turnover?
Operating activities, investing activities, financing activities and supplemental disclosures.
What are the 4 parts to the cash flow statement?
The account presented on the balance sheet and represents the expenses paid in advance.
Prepaid expenses
The year the first CPA exam was given.
What is 1896?
EBITDA
What are earnings before interest, tax, depreciation and amortization?
The net income if prior to the recording of adjusting entries, revenues exceed expenses by $60,000. Adjusting entries for accrued wages of $5,000 and an amortization expense of $5,000 was made.
What is $50,000?
The name of a balance sheet in a not for profit audit.
What are the Statements of Financial Position?
The normal balance for an expense account.
What is debit?
An account that is offset to, or a reduction of, another account.
What is a Contra account?
What is the Auditing Standards Board?
Total assets - Total liabilities
What is owners equity?
This statement can be completed using the direct or indirect method.
What is a statement of cash flow?
The account that records the total amount of amortization recorded against an asset since its purchase.
What is Accumulated Amortization?
Eddie Izzard, John Grisham, Mick Jagger and Kenny G.
Who are some names of famous individuals who all studied accounting?