Financial Standards
The rules of financial accounting.
What is GAAP (Generally Accepted Accounting Principles)?
The bottom line of this financial statement is "Net income (loss)."
What is the income statement?
Paying a utilities bill is an example of this cash flow.
What is an operating outflow?
ABC issues $100,000 of common stock to new shareholders. ABC will debit this account.
What is cash?
This category of assets represents deferred expenses that will be incurred in the future.
What are prepaids?
This independent, non-governmental group is delegated the power to set the rules of financial accounting.
What is the FASB (Financial Accounting Standards Board)?
"Assets = Liabilities + Stockholders' Equity" is the principle of accounting and of this financial statement.
What is the balance sheet?
Receiving cash for services paid on account is an example of this cash flow.
ABC takes out a loan of $50,000 from the bank. ABC will credit this account.
What is notes payable?
This account represents services that the company owes its customers.
What is deferred revenue?
This governmental agency has the highest authority over financial accounting, even if they choose to delegate away the power to set the rules.
What is the SEC (Securities and Exchange Commission)?
Dividends only show up on the financial statements of the statement of cash flows and this.
What is the statement of stockholders' equity?
Paying dividends is an example of this cash flow.
What is a financing outflow?
ABC runs commercials, paying on account to the TV provider. ABC will debit this account.
What is advertising expense?
What is retained earnings?
These are the rules of financial accounting that most international companies must abide by.
What is IFRS (International Financial Reporting Standards)?
The list of all accounts and their balances that can only be issued after the financial statements are issued.
What is the post-closing trial balance?
Issuing common stock is an example of this cash flow.
What is a financing inflow?
A customer pays ABC in advance for a cruise next year. ABC will currently credit this account.
What is deferred revenue?
When performing adjusting entries and accruing for unpaid interest, this account will be credited.
What is interest payable?
This is the group that sets the standards for international corporations to follow when issuing their financial statements.
Balance sheets reporting at a "point in time" versus income statements reporting a "period of time" represent this one of the GAAP assumptions.
What is periodicity?
Selling land is an example of this cash flow.
What is an investing outflow?
ABC receives payment for a customer who paid on account a month ago. This account will be credited.
When performing adjusting entries and accruing for unpaid salaries, this account will be debited.
What is salaries expense?