Accounting it All
Dividends are shown on this financial statement.
What is the Statement of Retained Earnings or Statement of Stockholders' Equity? (Do you know the elements of other financial statements?)
This ratio measures how fast accounts receivable are collected in cash.
What is accounts receivable turnover?
What are the three sections of the statement of cash flow (in order)?
What are the operating, investing, and financing sections?
The term that describes the maximum number of shares that a corporation can issue.
What is authorized stock?
This formal document defines the responsibilities of each partner and describes how income or losses will be divided.
What is a partnership agreement?
Which of the following increases with a debit: accounts receivable, accounts payable, or retained earnings?
What is accounts receivable?
Matching the entire $2,000 of advertising cost with the Year 1 accounting period even though some of the cost might generate revenue in future accounting periods qualifies advertising costs as ______ costs.
What is a period cost?
If current assets increase from year to year, the increase would be added or subtracted in the operating section of the Statement of Cash Flows (indirect method)?
What is subtracted?
True or False: Treasure stock reduces the number of outstanding shares.
What is true?
True or False: A sole proprietorship is a separate legal entity.
What is false?
This is the formula for calculating straight-line depreciation.
What is cost minus salvage value divided by useful life?
The seller is responsible for paying the freight cost with these shipping terms.
What is FOB destination?
How is the net change in cash calculation?
What is the sum of the inflow or outflow of the operating, investing, and financing sections?
The amount received above the par or stated value is recorded in this account.
What is paid in capital in excess of par? (Would you be able to calculate it?)
This term stands for policies and procedures companies establish to provide reasonable assurance of reducing fraud, provide reliable accounting records, and accomplishing organization objectives.
What are internal controls?
Provide the expanded version of the accounting equation.
OR
What is assets = liabilities + common stock - dividends + revenue - expenses?
This is the most common ratio that measures liquidity.
What is the current ratio?
What is the biggest difference between the direct and indirect method of preparing the Statement of Cash Flows?
What is the way cash flows from operating activities are presented?
The calculation for the ending retained earnings is....
What is Beginning retained earnings + Net Income - Dividends = Ending Retained Earnings?
This type of business formation allows the legal benefits of a corporation but taxed as a partnership - avoiding double taxation of profits.
What is a limited liability company (LLC)?
This is the term for the difference between the selling price and the face amount of a bond that is sold for more than the face amount.
What is a bond premium?
What accounts are closed at the end of the accounting cycle?
What are revenues, expenses, and dividends?
List off the components of the operating section of the Statement of Cash Flow using the indirect method.
Gains, Losses, Current Assets, Current Liabilities, Amortization, and Depreciation (GLLAAD)
Preferences granted to preferred stockholders include the following two preferences.
What is a preference to assets and preference to dividends?
Double taxation means that profits distributed to owners are taxed twice - on the _________ tax return and on the _______ return.
What is the corporation's income tax return and the individual's return?