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ACCOUNTING DEFINED
FORMS OF BUSINESS
GOALS AND ACTIVITIES
IDENTIFYING AND MEASURING
FINANCIAL STATEMENTS
100
It is the process of identifying, measuring, recording and communicating economic information of an organization to interested users.
What is accounting information?
100
These are the largest companies in the United states: Target, Walmart, Apple and microsoft
What is a corporation?
100
Pam wants to starts a business. She obtains a $1,000 investment from her mom.
What is a financing activity?
100
These kind of transactions in a business causes a change in the financial statements.
What are accounting transactions?
100
This statement is the only statement that deducts dividends.
What is the retained earnings statement?
200
These are people inside of a company or organization who use accounting information
What are internal users?
200
Harry had a dream last night. He woke up this morning and plans to open his business before noon.
What is a sole proprietorship?
200
Norma's delivery business has two vehicles. On Saturday, both vehicles were stolen and the insurance won't reimburse her. To keep the business running, Norma went to the dealership and purchased two vehicles with cash.
What is liquidity?
200
It is the value placed ABC placed on winning the most ethical company in Houston award. The owner estimated that this award would result in a $50,000 increase in sales.
What is $0?
200
This item only appears on the retained earnings statement and balance sheet.
What is ending retained earnings?
300
These are people or entities outside the organization who use accounting information
What are external users?
300
Nike and Rebook want to join together and make a fire proof shoe for the army. They will share the losses and profits of this temporary partnership.
What is joint venture?
300
The income statement is the primary communicator of this business goal.
What is profitability?
300
ABC purchased a building for $100,000. Five years later it was worth $1,000,000, but still listed on the balance sheet at $100,000.
What is historical cost?
300
This statement is organized according to the accounting equation: Assets = Liabilities + Equity
What is the balance sheet?
400
These are investors (stockholders) and creditors (banks and bondholders) who use accounting information.
What are users with direct financial interest?
400
The bank will only lend Sally and Stacey the money if both are individually and personally liable for the total amount owed?
What is a general partnership
400
Molly had a busy day. She purchased lemons, sugar and filtered water to make lemonade. She also purchased a small 100 square feet area at her neighbors house to use as a lemon making factory.
What is an operating activity What is an investing activity
400
These are always listed on the financial statements at its fair value.
What is stock or common stock?
400
This value appears on the balance sheet and cash flow statement.
What is the cash or ending cash balance?
500
An example are government entities (county, city and state) that use accounting information
What are users with an indirect financial interest?
500
Sandra wants to be part of a business. Her main concern is to limit her liability. She does not want someone to go after her personal assets.
What is limited partnership and corporation
500
Ten years ago, Sam borrowed $1,000,000 from the bank because his business was in a cash crunch. That taught him an important lesson. Since, then his business has been profitable and liquid. He intends to keep it that way for a long time.
What is a financing activity? What is solvency?
500
Shanta purchased a car at the market price of $2,000
What is historical cost and fair value?
500
This value appears on the three of the four financial statements?
What is net income?