Accounting Chapter 1
"how much in resources"
Assets
Where can you find it? Income tax payable
Balance Sheet
Where can you find it? Total Assets
Balance Sheet
Statement of RE Equation
Ending RE=Beginning RE+NI-D
"how much assets do stockholders own"
Equity
Insider claims of a business
Equity
Responsibilities of the members of society to each other
Ethical Duties
"how much to creditors"
Liabilities
Where can you find it? Dividends
Statement of retained earnings and Statement of cash flows
The primary objective of financial reporting is to provide information
useful for making investment and credit decisions.
Balance Sheet Equation
A=L+SE
Economic resources that are expected to produce a benefits in the future
Asset
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Accounts Payable
B
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Common Stock
B
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Inventory
B
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Long-Term Debt
B
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). How much in total debt does the company have?
B
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). What assets does the company have?
B
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). What is the company's financial position at the end of the year?
B
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Cash
B, C
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Retained Earnings
B, R
Also called the statement of financial position
Balance Sheet
Where can you find it? Common Stock
Balance Sheet
Where can you find it? Current Liabilities
Balance Sheet
Where can you find it? Long-term Debt
Balance Sheet
Where can you find it? Ending Cash Balance
Balance sheet and Statement of cash flows
Where can you find it? Ending balance of retained earnings
Balance sheet and Statement of retained earnings
Mechanical part of accounting
Bookkeeping
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) +-Cash
C
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Net cash provided by operating activities
C
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Net cash used for financing activities
C
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). How much cash did the company generate and spend during the year?
C
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). How much cash was generated by operating activities?
C
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Net Income
C, I, R
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Dividends
C, R
Owned by stockholders whose liability is limited to the amount they have invested in the business
Corporation
Costs of doing business
Expenses
Provides information for decision makers outside of the organization
Financial Accounting
Assets are usually reported at their
Historical Cost
States that assets should be recorded at their actual cost on the date of purchase
Historical Cost Principle
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Interest Revenue
I
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Salary Expense
I
Identify each item with its appropriate financial statement, using the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C) Sales Revenue
I
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). What were the company's net sales for the year?
I
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). How well did the company perform during the year?
I
Answers the question "How well did the company perform during the period?"
Income Statement
Where can you find it? Income tax expense
Income Statement
Where can you find it? Selling, general, and administrative expense
Income Statement
Where can you find it? Revenue
Income Statement
Where can you find it? Net Income
Income statement, Statement of retained earnings, and Statement of cash flows
Entities that provide money to finance a company's operations
Investors and Creditors
A debt payable to an outsider
Liability
Provides information for managers of the organization
Managerial Accounting
Income Statement Equation
NI=R-E
Total revenues less total expenses
Net Income
What does equity include?
Paid-in capital & Retained Earnings
A business organization form with two or more owners who are each personally liable for all of the business's debts
Partnership
A business organization form with a single owner who is personally liable for all of the business's debts
Proprietership
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). Did the company declare a dividend during the year?
R
Indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). Why did the company's retained earnings change during the year?
R
Inflows of resources resulting from delivering goods or services to customers
Revenues
Reports cash flows from operating, investing, and financing activities
Statement of Cash Flows
Where can you find it? Adjustments to reconcile net income to net cash provided by operations
Statement of Cash Flows
Where can you find it? Cash spent to acquire the building
Statement of Cash Flows
The amount a company expects to collect from customers appears on the
balance sheet in the current assets section.
Revenues are
increases in retained earnings resulting from selling products or performing services.
