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Accounting test 1 with Swift

memorize.ai (lvl 286)

Section 1

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Return on assets ratio =

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Last updated

6 years ago

Date created

Mar 1, 2020

Cards (27)

Section 1

(27 cards)

Return on assets ratio =

Front

Net income __________________ total assets

Back

Accounts you see on a balance sheet

Front

Assets: Cash, Land, etc. Total Assets Total liabilities Stockholder's equity: common Stock, retained earnings Total Stockholder's equity Total liability and stockholder's equity

Back

Accounting equation

Front

A=L+SE

Back

What is GAAP?

Front

Generally Accepted Accounting Principles. Measurement rules established by the FASB

Back

Deferral of revenue

Front

Collecting money in advance for services KNOW: -Corresponding year end adjustment -Affect of cash flow from OA

Back

Asset uses

Front

Back

Revenue

Front

Money we receive from performing services

Back

Straight-line Depreciation =

Front

Historical cost - salvage value ______________________________________________ Estimated useful life

Back

Given account balances

Front

Total Assets Net income Retained Earnings

Back

Return on equity ratio =

Front

Net income _________________ Stockholder's equity

Back

Prepaid rent-corresponding adjustment entry

Front

Back

Year end adjustments of accrual expenses

Front

Back

Asset exchanges

Front

Back

Tenets of accrual accounting

Front

Back

Claims exchange

Front

Back

Which accounts are affected when a business pays or provides services with cash?

Front

Cash Retained Earnings Statement of cash flows

Back

Debt to assets ratio =

Front

Total debt ________________ total assets

Back

Asset sources

Front

Back

Who is in charge of GAAP?

Front

Back

Audience of Financial Accounting

Front

The measurement process and communication of financial info about economic entities to the users of that info

Back

Matching Principle

Front

Cash basis accounting can distort measurement of net income because it sometimes fails to properly match revenues

Back

Deferral accounting

Front

Collecting money in advance for services

Back

What is the timing of the financial statements?

Front

Third line on the title of the statement

Back

Compute the cash flow from OA given 4 transactions

Front

Add and subtract all of the values that are labeled OA only

Back

Financial statements required by GAAP

Front

Balance Income Change in Stockholder's equity Cash flows

Back

Given a certain transaction, record it on the statement sheet

Front

Back

Accrual accounting

Front

Recognize revenue when the goods or services are sold or provided by the business Recognize expenses when they are used up in the process of generating revenue -Recognize revenue when earned, expenses when incurred -Recognizing cash when it's actually exchanged Realize revenue when cash is collected from customers Realize expenses when cash is paid for them

Back