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Income Statement
A, L & OE
Balance Sheet
Auditing
Miscellaneous
100

Net Sales minus the Cost of Goods Sold is

What is gross profit?

100
These are items owned that have monetary value
What are assets?
100

The long-term asset or noncurrent asset section of the balance sheet that reports the tangible, long-lived assets that are used in the company's operations

What is PPE?

100

Three documents you might need to audit cash

What are bank statements, bank reconciliation, and outstanding check list?

100
Shows the company's revenues and expenses
What is the income statement?
200

EBIT is the acronym for

What is Earnings Before Interest and Taxes

200

A = L + OE is called what

What is the Accounting Equation?

200

Name three current assets on the balance sheet

What is cash, inventory, and AR?

200

What document do you use to prepare a lead sheet?

What is trial balance?

200
In addition to an owner, these people also have claims against a company's assets.
Who are creditors?
300

On December 1, a company borrowed $100,000 at 12% per year. The interest will be paid quarterly, with the first payment due on March 1. What should the company report on its income statement for December?

What is interest expense of $1,000?

300
The amount of liabilities if assets are $2,000 and owner's equity is $500
What is $1,500.
300

A financial ratio that shows the proportion of a company's current assets to its current liabilities

What is current ratio?

300

What are two areas of an audit we often send confirmations for?

What is AR and debt?

300
The effect on equity when an owner withdraws cash from the business
What is decreases?
400

A company disposes of equipment that it no longer uses in its business. The amount received by the company is more than the amount the asset is carried at in the accounting records. The company will report a(n) __________.

What is a gain?

400

How will the total amount of a company's working capital change when the company pays $8,000 of its accounts payable?

$0

400

A potential liability that may or may not become an actual liability

What is contingent liability?

400

What documents do we ask for to perform revenue testing?

What is POs, shipping documents, invoices, payment support?

400
Creditors claims on assets
What is a liabilities?
500

What are the 5 steps of revenue recognition according to ASC 606?

  • Identify the contract with a customer.
  • Identify the performance obligations in the contract.
  • Determine the transaction price.
  • Allocate the transaction price.
  • Recognize revenue when the entity satisfies a performance obligation.
500

Account on the balance sheet that represents the amount owed for purchasing supplies on credit

What is Accounts Payable?

500

A corporation's previously issued shares of common stock that have been purchased from the stockholders, but the corporation has not retired the shares

What is treasury stock?

500

Name 2 footnote examples to the financial statements

What is debt, inventory, summary of significant accounting principles, leases, etc. 

500
The effect on assets when a company receives cash on their accounts receivable.
What is no effect? One assets (cash) goes up and another asset (A/R) decreases.