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Types of Accounting
The Accounting Equation
The Balance Sheet
The Income Statement
Pot Pourri
100
The type of accounting that provides managers and employees within the organization with the information needed to make decisions about a firm's financing, investing, marketing and operating activities?
What is managerial accounting?
100

Fill in the blank: The accounting equation is: _______ = Liabilities + Owners' Equity

What are assets?

100
The other name for the balance sheet
What is the Statement of Financial Position?
100
The dollar amounts earned by a firm from selling goods, providing services, or performing business activities
What are revenues?
100
The financial statement that illustrates how the company's operating, investing and financing activities affect cash during an accounting period.
What is the Statement of Cash Flows?
200

The type of accounting that is involved in determining the cost of producing specific products or services

What is cost accounting?

( While cost accounting has a quantitative approach, i.e. it records data which is related to money, managerial accounting gives emphasis on both quantitative and qualitative data). 

200

FASB stands for

What is Financial Accounting Standards Board?

(The Financial Accounting Standards Board is a private standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles within the United States in the public's interest)

200
The ease with which an asset can be converted into cash
What is liquidity?
200
The total dollar amount of all goods and services sold during the accounting period
What are gross sales?
200

The ratio used to evaluate a firm's ability to pay its current liabilities

What is the current ratio?

(Liquidity ratios measure company's ability to pay debt obligations and its margin of safety)

Profitability ratios assess a business's ability to generate earnings relative to its revenue 

Financial leverage assesses the ability of a company to meet its financial obligations). 

300

The type of accounting that is involved in planning tax strategy and preparing tax returns for firms or individuals

What is tax accounting?

(While accounting encompasses all financial transactions to some degree, tax accounting focuses solely on those transactions that affect an entity's tax burden, and how those items relate to proper tax calculation and tax document preparation)

300
A system in which each financial transaction is recorded in two separate accounting entries to maintain the balance shown in the accounting equation
What is a double-entry bookkeeping system?
300
Assets that can be converted quickly into cash or that will be used within one year or less
What are current assets?
300
The actual dollar amounts received by the firm for the goods and services it has sold after adjustment for returns, allowances and discounts
What are net sales?
300
The the ratio that is approximated by dividing the cost of goods sold in one year by the average value of the firm's inventory
What is inventory turnover?
400
The type of accounting that generates financial statements and reports for interested people outside of an organization, such as stockholders, lenders, and government agencies?
What is financial accounting?
400
The firm's debts -- i.e., borrowed money it owes to others that must be repaid.
What are liabilities?
400

The process of apportioning (assigning) the cost of a fixed asset over the period during which it will be used (i.e., its useful life)

What is depreciation?

(In accounting, depreciation is referred to as the cost of a tangible asset. Examples include property, plant, and equipment. ... On the other hand, for tax purposes, depreciation is considered as a tax deduction for the recovery of the costs of assets employed in the company's operations)

400
All business costs other than the cost of goods sold
What are operating expenses?
400
A statement of cash flows provides information about the company's cash receipts and cash payments and is organized around three different activities: operating, investing and _______.
What is financing?
500

An accounting who works on a fee basis for clients and may be self-employed or be the employee of an accounting firm.

What is a public accountant?

(Typically, a public accountant has achieved a bachelor's degree in accounting. A CPA, or Certified Public Accountant, is a designation earned after completing specific educational and work requirements, and passing an exam. These requirements are specific to each state). 

500
The difference between total assets and total liabilities (i.e., what would be left for the owners if the firm's assets were sold and the money used to pay off its liabilities)
What is owners' equity?
500

Assets that do not exist physically but that have a value based on the rights or privileges they confer on a firm

What are intangible assets?

(Patents, copyrights, trademarks, and goodwill-value of a company's brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology, etc)

500
Price reductions offered to customers who accept slightly damaged or soiled merchandise
What are sales allowances?
500
The ratio that determines how effectively a firm is transforming sales into profits
What is return on sales (or profit margin)?