Module 6 Accounting System
The elements of this financial statement include assets, liabilities, and stockholders' equity.
What is a balance sheet?
Earnings Per Share is disclosed on this financial statement.
What is the income statement?
The final step in the accounting cycle that results in zeroing all temporary accounts.
What is the closing entry?
Regulatory agency responsible for protecting investors and maintaining the integrity of the securities markets.
What is the Securities and Exchange Commission or SEC?
The equation Assets=Liabilities + Stockholders' Equity is referred to as the _____ equation.
What is the Accounting Equation?
Entry recorded on the right hand side of a T-Account
What is a credit?
Schedule that lists all general ledger accounts and their ending debit or credit balances in two columns.
What is a trial balance?
Name of the contra-account reflected in stockholders' equity to reflect stock repurchases.
What is Treasury Stock?
Publicly traded corporations file this form with the SEC to report their annual results.
What is a Form 10-K?
Operating, Investing, and Financing activities are three components of this financial statement.
What is the Statement of Cash Flows?
Financial statement name for economic resources owned or controlled by a company
What is an Asset?
Cash received before goods/services are provided results in a credit to this type of account
What is unearned revenue or deferred revenue?
Net Sales - Cost of Goods Sold equals _______.
What is Gross Profit or Gross Margin?
Who is PwC or PricewaterhouseCoopers?
Concept that every transaction has at least two effects on the basic accounting equation
What is the dual effects concept?
This principle requires that costs incurred to generate revenues be recognized in the same period
What is the Matching Principle or Expense Recognition Principle?
Only permanent account reflected in the closing journal entry
What is Retained Earnings?
Independent group that oversees the CEO and looks out for the interests of shareholders and stakeholders
What is the Board of Directors?
GMU Endowment Fund and pension funds are this type of investor
What is an Institutional Investor?
What is the Current Ratio?
The name of the ratio that measures management's effectiveness at generating profit on every dollar of sales
What is the Net Profit Margin Ratio?
Ratio that measures how efficient management is at using assets to generate sales
What is the Asset Turnover Ratio?
Net Profit Margin Ratio X Total Asset Turnover Ratio equals this ratio
What is the Return on Assets Ratio?
Accounting rules formulated by the FASB that determine content and measurement of financial statements
What is Generally Accepted Accounting Principles or GAAP?