Understanding accounting
What are debts or obligations owed by the company?
Liabilities
An accounting entry that either lowers an asset or cost account or raises a liability or equity account
Credit
the collection and preparation of accounting data utilized inside an organization to help guarantee that goals are achieved successfully and efficiently
managerial accounting
Portion of income subject to tax after all exclusions and deductions
Taxable Income
reviewing and evaluating the information used to prepare a company’s financial statements. is known as
Auditing
Accounting Equation
Assets = Liabilities + Stockholders' Equity
an accounting entry that either adds to an asset or cost account or subtracts from a liability or equity account In an accounting entry, it is positioned to the left.
Debit
costs that are directly involved in the production of the good
direct materials
Items excluded from taxable income such as interest on State and Local bonds
Exclusions
How many types of auditing are there
" 100 extra point if you can list all them"
three
statement detailing what a company owns "assets"
balance sheet
What is financial accounting?
financial accounting involves gathering and reporting financial data.
Three Functions of Management Accountants
Planning, Directing, Controlling
the proportion of tax paid on the next dollar of income
marginal tax rate
Who assist companies in monitoring their own controls
internal audit department
what are the working fields of accounting
auditing
tax accounting
managerial accounting
financial accounting
government and not-for-profit accounting
Define Revenues
Money earned by the farm business from the production or sale of farm products
people inside the company;. managers, accountants, etc
internal users
the percentage of total tax paid on the amount of the tax base
average tax rate
An audit of whether an entity is following a set of rules by a higher authority is what?
compliance audit
Double Entry Accounting
for every debit there must be an offsetting credit
A measure of Liquidity, equaling current assets minus current liabilities
working capital
we can only analyze costs across a reasonable range of values
relevant range
What is the primary purpose of most tax systems
Raise revenue
Fund government operations
An examination of procedures for evaluating efficiency is what type of audit?
operational audit