Financial Reporting
When financial statements do not have a bias they can be described as having this.
What is neutrality?
These transaction recordings contain no negative numbers.
What are journal entries?
These are the terms that ALCREW stands for.
What are...
Assets, liabilities, capital (equity), revenue, expenses, withdrawals (dividends)
This key part of revenue recognition contains a promise to transfer goods/services to a customer.
What is a contract?
These are the three types of activities on the statement of cash flows.
What are financing, investing, and operating?
This is the phrase that IFRS stands for.
What is International Financial Reporting Standards?
The term used to describe converting a loan into shares.
What is a convertible venture?
The balances of these accounts are carried over to future years.
What are permanent accounts?
This is the total (%) that all obligations in a contract should add up to.
What is 100%?
Proceeds from the sale of equipment used in the business will be part of this activity.
What is investing activity?
This type of accounting record expenses as they are incurred.
What is accrual accounting?
This type of financial statement contains enough information to create multiple other financial statements.
What is a trial balance?
These entries are made to transfer temporary account balances to permanent accounts.
What are closing entries?
This is the process of determining prices for individual obligations in a contract.
What is contract price allocation?
Net income can be found in these statements.
What is the statement of cash flows and income statement?
The accounting standard used by private companies but not public companies.
What is ASPE - Accounting Standards for Private Enterprises?
In this type of business, the owner(s) is (are) not responsible for the debts of the business.
What is a corporation?
These entries are made at the end of the period to correct amounts before financial statements are prepared.
What are adjusting entries?
There are 7 obligations the percent allocation for 6 of them are as follows: 12, 7, 2.5, 19, 23, 15.
The last obligation is worth this much.
What is 21.5%?
Land has been purchased for $20,000. The company also sold a van worth $12,000. This balance is what is in the investing activities.
What is -$8000?
This is what happens to net income under the cash and accrual basis when a customer puts a deposit on an order. (hint: different results)
What is an increase in net income under the cash basis and no impact under the accrual basis?
This is the single journal entry for paying off a bank loan of $1850 that had interest of $150 in cash. (hint: debits and credits)
What is...
DR Interest expense $150
DR Bank Loan $1850
CR Cash $2000
These are the first two steps in the accounting cycle.
1) Transactions/economic events must occur
2) Preparation of journal entries.
This amount is the remaining cost for the third obligation.
What is $7000?
Net income is $270,000. Land has been sold for $100,000, proceeds from issuing stock were $150,000. Bank debt worth $75,000 was paid in cash, accounts receivable worth $11,000 were paid by customers. Finally, $50,000 worth of dividends were paid out to shareholders. Based on this, the cash flow for financing activities is this amount.
What is $25,000?