Financial Accounting
The main financial statement that reports a company’s profit or loss for the period.
What is Income Statement?
Direct labor + Manufacturing overhead is known as this type of cost.
What are conversion costs?
The organization responsible for auditing standards for public companies.
What is the PCAOB
Filing status with the lowest standard deduction amount.
What is single
A plan that shows how much money a company expects to earn and spend.
What is a budget?
Assets = Liabilities + ?
What is Equity
The type of costing used when many identical units are produced continuously.
What is process costing?
Evidence from independent external sources is considered the most what?
What is reliable?
Money taken out of your paycheck before taxes are applied.
What are pretax deductions?
A cost that can be directly traced to a cost object.
What is a direct cost?
This principle states expenses should be recorded in the same period as the revenues they help generate.
What is the matching principle
Cost that does not change as volume changes within a relevant range.
What is a fixed cost?
The risk that a material misstatement exists before the auditor tests controls.
What is inherant risk?
This IRS form is used to report individual income tax.
What is form 1040?
Comparing actual results to budget results is called what?
What is variance analysis?
When an asset’s carrying value is no longer recoverable, this must be recorded.
What is impairment?
Cost behavior graph where cost increases in chunks (like supervision added at 50 workers).
What are step costs?
A letter sent to a client’s bank to confirm balances is what type of procedure?
What is confirmation?
Long-term capital gains usually receive ___ rates than ordinary income.
What are lower (preferential) rates?
What type of budget changes with changes in activity level?
What is a flexible budget?
A company must disclose anything that could affect user decisions — called what?
What is materiality
CM = Sales – Variable Cost. What does CM stand for?
What is contribution margin?
The opinion issued when the financial statements are fairly stated in all material respects.
What is unqualified opinion?
The tax credit given to eligible taxpayers with low-to-moderate income who work.
What is the earned income credit?
The practice of managers intentionally underestimating revenues or overestimating expenses.
What is budgetary slack?