Name the steps
What are the three factors that push a person to commit a fraud?
Opportunity
Pressure
Realization
What are the three steps when preparing for a trial balance
1.) List the accounts and amounts
2.) Compute the total of debit and credit
3.) Verify total debit and credit equal
Velocity Means ........
The speed at which data are created and processed
This account has depreciation in it
Contra
Variety refers to
the varied types of data generated
Name the three V's of Machine Learning
Volume
Variety
Volume
What are the four Double Entry Steps?
1.) Identify transactions and source documents
2.) Analyze the transactions
3.) Record the Journal Entry
4.) Post the entry
Posting is......
The process of moving information from a journal to a general ledger.
Long-lived assets used to produce or sell products and services.
(Equipment, machinery, buildings, land used to sell products and services)
Plant Assets
Are expected to be held for more than one year or the operating cycle.
ex: Notes receivable, investments in stocks, bonds
Long-term investments
What are the 4 types of adjusting entries?
Deferral of expense
Deferral of Revenue
Accrued Expense
Accrued Revenue
What is the short version of the Accounting Cycle
1.) Identify the transactions
2.) Prepare a JOURNAL ENTRY and RECORD
3.) Prepare TRIAL BALANCE
4.) Make ADJUSTING ENTRIES
5.) REVIEW adjusted trial balance
6.) Produce FINANCIAL STATEMENT
7.) CLOSING ENTRIES
8.) Prepare JOURNAL ENTRIES
Statement cash flows are........
Lists the periods of cash inflows and outflows
Are expected to be sold, collected, or used within one year of the company's operating cycle
Are listed in order of liquidity
ex. (Cash, accounts receivable, prepaid expense, short term notes receivable)
Current Assets
Are long term-assets used to produce or sell products and services
Intangible Assets
What are the two Adjustment Entry Rules?
Always involve both the balance sheet and an income statement
Never involve cash
These are what type of accounts?
-Revenues
-Expenses
-Dividends
-Income Summary
Temporary Accounts
Fiscal Year is?
A 12-month accounting period that a business uses for financial tax reporting purposes.
What is Liquidity?
How quickly an asset, or security, can be converted into ready cash
Liabilities are due within the longer of one year or the company operating cycle.
ex: Accounts payable, short-term debts, dividends, notes payable
Current Liabilities
What are the 4 principles?
Measurement
Revenue Recognition
Expense Recognition
Full disclosure
These are what type of accounts?
-Assets
-Liabilities
-Common stock
- Retained Earnings
Permanent Accounts
To spread out the cost of their expected useful lives
Depreciation
The closing process only applies to what accounts?
Temporary accounts
Are Liabilities not due within one year or the company's operating cycle
ex: Notes payable, mortgages payable, bonds payable, lease obligations
Long-term Liabilities