GAAP
What are the three financial statements public companies must report.
Balance Sheet
Income Statement
Statement of Cash flows
The primary governing body responsible for setting audit standards in the United State
PCAOB
How many financial statements must a governmental entity prepare according to GASB
2
Which form is business income reported
Schedule C
Name the Big 4 Accounting Firms
Deloitte
EY
PWC
KPMG
Public companies file this form annually
Form 10-K
This risk is associated with an account or transaction and is not influenced by the internal control environment
inherent Risk
For reporting purposes, all economic resources held by a NFP are classified in one of three categories. Name 2 of them
Unrestricted Net Assets
Temporarily restricted net assets
Permanently restricted net assets
For C Corporations, this refers to taxation at both the corporate and shareholder levels
Double-Taxation
What is the correct method for the depreciation of land
none
assets that do not have a physical form
Intangible assets
This analytical procedure compares financial data over multiple periods to identify unusual trends
Horizontal Analysis / Trend Analysis
Statement of Revenues & Expenditures for a governmental entity
Statement of Activities
Name the two Tax accounting Methods
Accrual & Cash Basis
the father of accounting who said, “a person should not go to sleep at night until the debits equal the credits.”
Luca Pacioli
According to this principle, businesses must operate as though they will continue indefinitely, unless otherwise stated.
Going concern
What line item carries the highest audit risk
revenue
Statement for Assets & Liabilities for a Governmental entity
Statement of net position
Al Capone
What is Steve Crowley's 1st rule of business
Buy low, sell high
revenues, expenses, gains, and losses that have yet to be realized and are excluded from net income on an income statement.
Other Comprehensive Income
an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatement due to fraud or error, and a critical assessment of audit evidence
Professional skepticism
FASB has established three financial statements for private NFP entities (name all three)
This advanced tax strategy involves the deferral of taxes on the appreciation of assets, typically through a tax-free exchange under Section 1031 of the Internal Revenue Code.
Like-Kind Exchange
Greatest Accounting professor of all time
Paula Mann