Module 1
This financial statement reports revenues and expenses.
What is the Income Statement?
This is a method of allocating indirect costs based on their estimated time usage.
What is Time Driven Activity Based Costing?
Pressure, opportunity, and rationalization are the elements of this framework.
What is the fraud triangle?
A fundmental tension between capital owners and entrepreneurs is a lack of this shared feeling.
What is trust?
This is known as the "fundamental equation of accounting"
What is A = L + E?
The Wall Street Journal records a credit to this account when a customer pays for a subscription for the following year.
What is deferred revenue
(or unearned revenue)?
A tool for understanding the difference between actual and expected performance.
What is a variance analysis?
This control system articulates to employees what the company's core values are?
What is the Belief System?
The mission of this enforcement institution is to protect investors; maintain fair, orderly, and efficient markets, and facilitate capital formation in the United States.
What is the SEC? (U.S. Securities and Exchange Commission)
This was the case with the highest number of students participating
What is Harvard University and Urban Mining?
You would look at this statement to find out how much a firm’s capital outlays were for the year.
What is the cash flow statement?
The three components of the DuPont Framework.
What are net margin, asset turnover, and leverage?
Requiring a second senior executive approver before releasing a payment to a supplier is a form of this system.
What is Internal Controls?
This board of directors committee hires the external auditor and oversees the company's financial reporting process.
What is the audit committee?
What is Hagoromo?
These journal entries are recorded to reflect expected losses from credit sales.
What is debit bad debt expense, and credit allowance for doubtful accounts?
The name of the ratio defined by current assets divided by current liabilities
What is the current ratio?
This control system specifies what employees are not allowed to do.
What is the boundary system?
These executives need to sign off their company's financial reports to assure that they fairly present, in all material respects, the financial condition of the company.
What are the CEO and the CFO of the company?
Employees can use hotlines in this program to report their companies’ wrongdoing to regulators.
What is whistleblowing?
This relation is known as the "retained earnings equation"
What is RE(end) = RE(beg) + Net Income - Dividends
This equation produces a metric expressing the days it takes for a company to convert its investments in inventory into cash flows from sales, also known as the cash conversion cycle.
What is days inventory + days receivable - days payable?
When the span of accountability is larger than the span of control.
What is the entrepreneurial gap?
What is the COSO framework?
You use this rule of thumb: 5% of net income and 1% of revenue to determine it.
What is materiality?