Terminology
Something the business owns
What is an asset
They must equal
What is debits equal credits?
A professional who performs accounting functions
What is an accountant?
Never included in adjusting entries
What is cash?
The type of account closed at the end of the period.
What is a temporary account?
Owners of a corporation
What are stockholders?
What is the first financial statement prepared?
What is the Income Statement?
Person who reviews the accuracy of financial statements & ensures compliance with GAAP.
What is an auditor?
The allocation of an asset over the useful life of an asset.
What is depreciation expense?
The type of account not closed at the end of the period
What is a permanent account?
The owner's claim to the business
What is Owner's Equity
The last financial statement prepared
What is the Statement of Cash Flows?
C-suite executive responsible for the financial affairs of a corporation.
What is a CFO?
Matches expenses in the same period as revenues, and is a result of selling on credit.
What is bad debt expense?
The number of closing accounts
What is four?
States that assets should be recorded at their actual cost
What is the cost principle?
Flows from the statement of retained earnings to the balance sheet.
What is ending retained earnings?
Who the CEO reports to
What is the Board of Directors?
Records revenues & expenses that have not been recorded at the end of the period.
What are adjusting entries?
When closing entries are prepared
What is after the financial statements?
Standards a business may be required to use if it does significant business in another country
What is International Financial Reporting Standards?
A company's change in total stockholder's equity from all sources except owner's investment & dividends
What is comprehensive income?
Who the auditors report to
What is the Audit Committee
An adjusting entry must include an expense or this?
What is revenue?
Step in the accounting cycle after closing entries
What is the post closing trial balance?