Role of Accounting/Accounting
Comprehensive system for collecting, analyzing, and communicating financial information. This can be done on a personal level, as well as a business level.
Accounting
Name the major categories within the income statement.
Revenues, Cost of Revenues, Operating Expenses, and Net Income/Loss
These types of ratios are financial ratios which measure the potential earnings of a company.
Profitability Ratios
The abbreviation of GAAP stands for what.
Generally Accepted Accounting Principles
This enactment of federal regulations to restore public trust in accounting practices by imposing new requirements on financial activities. This was done in 2002.
Sarbanes-Oxley Act of 2002
The title of the person who manages all of a firm's/company's accounting activities. This person is also called the Chief Accounting Officer.
Controller
This statement includes the firm's yearly cash receipts and cash payments.
Bonus Points: Name the 3 categories of this statement
Statement of Cash Flows
Operating Activities, Investing Activities, Financing Activities
These types of ratios are financial ratios that evaluate the efficiency of a company using their assets.
Activity Ratios
What does the AICPA stand for?
American Institute of Certified Public Accountants
Audit
These are organized procedures for identifying, measuring, recording, and retaining financial information for use in account statements and reports.
Accounting Information Systems
Double Jeopardy: Pick a wager amount from your total.
The difference between a current asset/short-term liability and fixed assets/long-term liability is what.
Current - can be converted or due within a year
Fixed/Long-term - long term use and is not due within a year
Short-Term Solvency Ratio
Being Objective, Maintaining Technical and Ethical Standards, Professional Conduct, Serving the Public Interest, Maintaining Integrity, Responsibilities as a Professional
This is a detailed statement of estimated receipts and expenditures for a future period of time.
Budget
This type of accounting serves the internal users of a company's financial information. It helps management make informed/data-driven decisions.
Managerial Accounting
This is a quick-to-calculate profit figure calculated from the firm's revenues minus its cost of revenue.
Gross Profit
Revenue should be recorded in differently if it is a product or service. Explain how a company should record each.
Product - point of sale
Service - over the duration of the contract as the job gets done
IASB (International Accounting Standards Board)
This specific type of ratio looks at the balance sheet to figure out the extent to which a company is financed through borrowed money.
Long-Term Solvency Ratio
This type of accounting is concerned with the external users of a company's financial information. Groups could include stockholders, unions, suppliers, creditors, government agencies, etc.
Financial Accounting
This stays with the company after dividends have been paid out to their stockholders. It is on 2 of the 3 financial statements.
Retained Earnings
Companies must include notes to the financial statements which provide additional explanations, disclosures, and details. What is this called?
Full Disclosure
Provide 1 reason for the need of global accounting standards.
Globalization (one world economy), The upsurge of international and multinational companies
This specific type of ratio measures the net profit that the company earns for each share of outstanding stock.