Show:
General
The Accounting Cycle
Cash & Internal Controls
Receivables and Sales
Inventory and Cost of Goods Sold
100
"the language of business"
What is accounting?
100
The full set of procedures used to accomplish a two-step measurement/communication process
What is the accounting cycle?
100
Motive, rationalization, and opportunity are present for every fraud that occurs
What is the fraud triangle?
100
Represents the amount of cash owed to a company by its customers from the sale of products or services on account
What is accounts receivable?
100
Items a company intends for sale to customers
What is inventory?
200
Amounts owed to creditors
What is liabilities?
200
Transactions the firm conducts with a separate economic entity
What is external transactions?
200
Control environment, risk assessment, control activities, and monitoring
What are the components of internal control?
200
Represents a reduction in the listed price of a product or service
What are trade discounts?
200
Cost of the inventory sold during the period
What is cost of goods sold?
300
Assets= Liabilities + Stockholders' Equity
What is the accounting equation?
300
Companies record revenue at the time it's earned
What is the revenue recognition principle?
300
Occurs when two or more people act in coordination to circumvent internal controls
What is collusion?
300
An account with a balance that is opposite to that of its related revenue account
What is a contra revenue account?
300
Specific identification, FIFO, LIFO, Weighted-average Cost
What are the inventory cost methods?
400
Providing accounting services to the company that employs you
What is private accounting?
400
Left on the T chart
What are debits?
400
Matches the balance of cash in the bank account with the balance of cash in the balance of cash in the company's own records
What is a bank reconciliation?
400
Also known as bad debts
What are uncollectible accounts?
400
Involves recording inventory purchases and sales on a continual basis
What is a perpetual inventory system?
500
Income statement Statement of stockholders' equity Balance sheet Statement of cash flows
What are the financial statements?
500
Used to describe the format for recording a transaction
What is a journal entry?
500
Requires company management and auditors to document and assess the effectiveness of a company's internal controls
What is stated in section 404 of SOX?
500
If the customer pays within 10 days, the customer will receive a 2% discount. If not the full payment is due in 30 days. (Discount term)
What is 2/10, n/30?
500
(Cost of Good Sold/Average Inventory)
What is the inventory turnover ratio?