Is a short-term, highly liquid investment with an original maturity of less than three months. Every transaction will have one account being credited and one account being _____ debited. Start studying Financial Accounting. Meets a least one of the four criteria establish by GAAP and results in the recording of an asset and liability. Earnings from the sale of goods or services to costumers. Is the maximum number of shares of a corporation's capital stock that can be issued as specified in the charter. Example, if cash will be paid: Is an account that is an offset to, or reduction of, the primary accout. AccountingCoach helps you evaluate your knowledge and provides free online courses for your improvement. Is the fee charged by the credit card company for its services. 1. Is a bond document that each bondholder receives. The first Nobel Prizes given to finance professors were for their contributions to capital structure theory and portfolio theories of risk and return. The purpose of accounting is to prepare If you work in accounting your recording and reporting of financial transactions will support the work of the finance team. Is the rate of cash interest per period stated in the bond contract. Record assets and liabilities acquired in a merge or acquisition at their fair value on the transaction date. Are open accounts owned to the business by trade costumers. Quickly memorize the terms, phrases and much more. Of an asset is the difference between its acquisition cost and accumulated depreciation, its related contra-account. Insider trading involves the use of information not available to the general public to make profits from trading in a company's stock. Are all the entity's obligations not classified s current liabilities. Is a monthly report from a bank that shows deposits recorded, checks cleared, other debits and credits and a running bank balance. Revenues are reported whether or not have yet been paid for. Is to provide useful economic information to help external parties make financial decisions. Requires that expenses be recorded when incurred in earning revenue. Financial Accounting. Try this amazing Quiz: Test Your Knowledge On Financial Accounting quiz which has been attempted 7206 times by avid quiz takers. Compute the totals that would appear in the corporation’s basic accounting equation (Assets = Liabilities + Stockholders’ Equity (Capital Stock)). Includes goods held for sale in the ordinary course of business. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. _____ Double. Test your accounting skills with our quizzes. (Cash discount) is a cash discount offered to encourage prompt payment of an account receivable. Dan and Den, Inc. reports the following assets and liabilities. Write. Is the difference between the selling price and par when the bond is sold for less than par. Start studying financial accounting chapter 10. Likewise, if you’re in finance you’re depending on the clear and accurate work of the folks in accounting. Is capital stock that has no par value specified in the cooperate charter. Flashcards. Financial Accounting Standards Board. Is the ability to determine the operating and financing policies of another company through ownership of voting stock (company owns more than 50% of the outstanding voting shares). Is the process followed by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle. Learn. McGraw-Hill Reports the amount of assets, liabilities and stockholders' equity of an accounting entry at a point in time. Exception suggest that small amounts that not likely to influence a user's decision can be accounted for in the most beneficial manner. Gravity. Is an unsecured bond; no assets are specifically pledged to guarantee repayment. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Money markets refer to those markets dealing with short-term securities having a life of one year or less. Is the basic voting stock issued by a corporation. Reports the way that net income and the distribution of dividends affected the financial position of the company during the accounting period. Identify the accounts affected and classify them by type of account. Is the acquisition cost of an asset less accumulated depreciation. entry bookkeeping will result in at least two accounts being involved in every transaction. Return on investments based on dividends. This material is customarily covered in introductory accounting courses, and is foundational for all accountants and business persons. Accounting software also works efficiently in both accounting concepts to the benefit of a small, medium or large business out there. Is the exclusive right to publish, use, and sell a literary, musical, or artistic work. Is a simplify method of amortizing a bond discount or premium that allocates an equal dollar amount to each interest period. In what respects would you agree with this description? Financial capital is composed of long-term plant and equipment, as well as other tangible investments. Occurs when one company purchase all of the assets and liabilities of another and the acquired company goes out of existence. Test. Financial markets exist as a vast global network of individuals and financial institutions that may be lenders, borrowers, or owners of public companies worldwide. Is the ratio that evaluates the operating performance and profitability of a company. In the mid 1950s, finance began to change to a more analytical, decision-oriented approach. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Financial Accounting, 7e Custom Version for Moorpark College Libby/Libby/Short McGraw-Hill ISBN-13: 978-0-07-767911-8 ISBN-10: 0-07-767911-3 Key Concepts: Terms in this set (196) GAAP is the acronym for _____ generally accepted accounting principles. Estimates uncollectible accounts based on the age of each account receivable. In terms of revenues and profits, the corporation is by far the most important form of business organization in the United States. System that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers. Gravity. Are dividends on cumulative preferred stock that have not been declared in prior years. Spell. Is the method that allocates the cost of an asset over its useful life based on the relation of it periodic output to its total estimated output. financial activities. On the other hand, financial accounting helps us understand how profitable a company is through financial statements.For example, if a company has sold $100,000 worth of products in a year and expended $65,000 for making the sales (cost of goods sold plus other operating expenses), then the profit of the company for the year is $35,000.Cost Accounting vs Financial Accounting Infographics Or Yield, is the current rate of interest on debt when incurred. Exercise 2. So what does that mean? Are transactions that do not have direct cash flow effects; they are reported as a supplement to the statement of cash flow in narrative or schedule form. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet. Match. In the past, the study of finance has included, Professor Merton Miller received the Nobel Prize in Economics for his work on, Professor Harry Markowitz and William Sharpe received their Nobel Prize in Economics for their contributions to the, theories of portfolio based management and the risk along with return on securities, income is taxed as direct income to stockholders, Agency theory examines the relationship between the, owners of the firm and the managers of the firm, The increasing percentage ownership of public corporations by institutional investors has, created more pressure on public companies to manage their firms more efficiently, The Sarbanes-Oxley Act was passed in an effort to, control corrupt corporate financial behavior, A financial manager's goal of maximizing current or short-term earnings may not be appropriate because, *it fails to consider the timing when sharholders want increased earnings and may instead consider the manager's own goals, As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether, shareholder goals are truly achieved by managers in the long run, The major difficulty in most insider-trading cases has been, that inside traders have not been legally well-defined, Companies that have higher risk than a competitor in the same industry will generally have, *to pay a higher interest rate than its competitor, The financial markets allocate capital to corporations by, reflecting expectations of the market participants in the price of the corporation's stock. Is the ability to have an important impact on the operating, investing and financing policies of another company (from 20% to 50% of the outstanding voting shares). When goods are shipped, title changes hands at shipment, and the buyer normally pays for shipping. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. Each of these economic resources is expected to provide future benefits to the firm. Are investments in debt securities that management has the intent and ability to hold until maturity. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. "Footnotes" provide supplemental information about the financial condition of a company. Chapter 1: What is Accounting. Write. Financial accounting reports are prepared for the use of external parties such as shareholders and creditors, whereas managerial accounting reports are prepared for managers inside the organization. Is the organization for with financial data are to be collected. Units-Of-Production Depreciation and formula. can minimize dilution when issuing new shares and can issue debt at a lower interest rate. Accounting 101: Financial Accounting Final Exam Take this practice test to check your existing knowledge of the course material. The secondary market characteristically has had stable prices over the past 20 years. "Real" are the Balance Sheet accounts that carry their anding balances into the next accounting period. Is another name for bond principal, or the maturity of a bond. The increase in the internationalization of financial markets has led to. Is the dollar difference between total current assets and total current liabilities. Also explore over 28 similar quizzes in this category. The following information was extracted from the financial records of Pama Limited: Equipment purchased on 1 July 2018 for $100 000 (accounting depreciation 10% straight line; tax depreciation 20% straight line). May be converted to other securities of the issuer (usually common stock). Get Free Lesson 2 Financial Accounting Quizlet now and use Lesson 2 Financial Accounting Quizlet immediately to get % off or $ off or free shipping Are assets that occur in nature, such as minerals deposits, timber tracts, oil and gas. Includes goods in the process of being manufactured. Assets = Liabilities + Stockholders' Equity. Primary objective of external financial reporting. Every transaction affects at least two accounts (dual effect), and the accounting equation MUST remain in balance after each transaction. Financial Accounting, 7e Refers to the total number of shares of stock that are owned by stockholders on any particular date. _____ Double. A limited partnership limits the profits partners may receive. a system that collects and processes financial information about an organization and reports that information to decision makers. Financial accounting, on the other hand, is a niche subject that helps management see how a company is doing financially though financial accounting is created for stakeholders and potential investors who can look at the books of financial accounts and decide for themselves whether they would invest in … Example, cash will be received: Are previously acquired assets that need to be adjusted at the end of the accounting period to reflect the amount of expenses incurred in using the asset to generate revenue. 13. Is an examination of the financial reports to ensure that they represent claim and comfort with GAAP. hannah_cole39. Financial accounting is a subsection of the general field of accounting that focuses on gathering and compiling data in order to present financial statements to external users in a usable form. STUDY. "Cash-to-cash" is the time it takes for a company to pay cash to suppliers, sell goods and services to costumers, and collect cash from costumers. Exception suggest that care should be taken not to over state assets and revenues or understate liabilities and expenses. Is a list of all accounts with their balances to provide a check on the equality of the debits and credits. The three steps in the transaction analysis process. Ratio that measures the portion of the income that was generated in cash. CFO- Are cash flow that are directly related to earning income. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Information should be Relevant and Reliable. Bases bad debt expenses on the historical percentage of credit sales that result in bad debts. allowed firms such as McDonald's to raise capital around the world. Custom Version for Moorpark College Is an exchange of assets or services to pay between a business and one or more external parties to a business or a measurable internal event such as the use of assets in operations. Learn. May be called for early retirement at the option of the issuer. Are all passive investments other than trading securities and debt held to maturity (short or long term). Cash Flow from Financing Activities, and examples. Is a method of amortizing a bond discount or premium on the basis of effective-interest rate; is the theoretically preferred method. 10. The profitability of a company for a specified period of time is reported on the _____ statement. Financial accounting involves recording, summarizing, and reporting the stream of transactions and economic activity resulting from business … Are tangible and intangible resources owned by a business and used in its operations over several years. However, low-quality stocks must usually be sold in secondary markets, such as NASDAQ. Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Assets have special rights but not physical substance. In the United States, stocks sold on either the New York Stock Exchange or NASDAQ are considered sold in the primary market. Are amounts associated with price changes of securities that are currently held. Is the interest that is associated with the use of money over time. Ending inventory and cost of good sold are determined at the end of the accounting period based on a physical count. Financial accounting is focused on the _____ financial statements of a company. Is the ability to pay current obligations. 12/11/2020 Test: CPA Financial Accounting & Reporting | Quizlet 1/4 1. measurement date INCORRECT No answer given THE ANSWER D. the date on which the amount of compensation is determined 5 Written questions 1. hedging against a recognized asset or liability on the balance sheet or a firm purchase commitment. The first section of the statement of cash flows is the _____ activities. During the 1930s, financial practice revolved around such topics as the preservation of capital, maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy. Example, cost of light, supervisor's salary. Financial accounting final. Does not meet any of the four criteria establish by GAAP and does not cause the recording of an asset and liability. Basically, financial accounting’s main purpose is to provide useful, financial information to people or groups outside of companies often called external users. Income statement, statement of retained earnings, balance sheet, and statement of cash flows. Is a distribution od additional shares of a corporation's own stock. Define asset, liability, and stockholders’ equity. The University of North Georgia Press and Affordable Learning Georgia bring you Accounting I. Well-written and straightforward, Principles of Financial Accounting is a needed contribution to open source pedagogy in the business education world. Measures the sales generated per dollar of assets. Questions: Accounting has often been called the language of business. Economic Return from Investing = (Dividends and Interest Received + Change in Fair Value) / Fair Value of Investments. Bases bad debt expenses on an estimate of uncollectible accounts. How might you argue that this description is deficient? This book covers a range of financial accounting topics related to the accounting and reporting cycle, current assets, long-term assets, debt, equity, and cash flows. Because socially desirable goals can hinder profitability in many instances, managers should not try to operate under the assumption of wealth maximization. Includes items acquire for the purpose of processing into finish goods. Records revenue when earned and expenses when incurred, regardless of the timing of cash receipts or payments. Is an accounting method for expressing the effects of a transaction on accounts in debits-equal-credits format. Key Concepts: Terms in this set (45) In the past, the study of finance has included. As finance emerged as a new field, much emphasis was placed on mergers and acquisitions. Is a series of periodic cash receipts or payments that are equal in amount each interest period. Is a potential liability that has arisen as the result of a past event. Key Concepts: Terms in this set (295) Using an invoice, rather than the seller's opinion of the value, to document the value of equipment, is based on the _____ principle. The following are areas in which financial and managerial accounting differ and what sets them apart. Ending Retained Earnings = (Beginning of Retained Earnings + Net Income) - Dividends, +/- Cash flow from Operating Activities (CFO), Cash Flow from Operating Activities, and examples. Reflects how many times average trade receivables are recorded and collected during the period. a system that collects and processes financial information about an organization and reports that information to decision makers. Generally Accepted Accounting Principles, are the measurement rules used to develop the information in financial statements. ISBN-13: 978-0-07-767911-8 Are increases in assets or decreases in liabilities from peripheral transactions. States that businesses are assumed to continue to operate into the foreseeable future. Revenues from goods shipped FOB destination are normally recognized at delivery. Is an increase in the number of authorized shares by a specific ratio; it does not decrease retained earnings. Spell. Marcy Mathworks Answer Key 2006 PDF complete. Missed a question here and there? CFF- Are cash flow directly related to the financing of the enterprise itself. investors, creditors, cash, economic . Is the process of allocating the cost of buildings and equipment over their productive lives using a systematic and rational method. Is the difference between the selling price and par when the bond is sold for more than par. Is the feature of preferred stock that grants priority on preferred dividends over common dividends. Debit (dr) is on the LEFT side of an account. Cram.com makes it easy to get the grade you want! Both fields require a high level of skill, education and comfort with quantitative analysis. Example, when cash was received and previously recorded: Are previously unrecorded revenues that need to be adjusted at the end of the accounting period to reflect the amount earned and the related receivable account. 11. mergers and acquisitions raising capital bankruptcy. Is another name for bond principal, or the maturity amount of the bond. CGS = Beginning Inventory + Purchases of merchandise - Ending Inventory. Are all investments in stock or bonds held primarily for the purpose of active trading (buying and selling) in the near future (classified and short term). Are written promises that require another party to pay the business under specified conditions (amount, time, interest). Agency theory examines the relationship between companies and their customers. Is an exclusive legal right to use a special name, image, or slogan. The Sarbanes-Oxley Act reduced agency conflicts by giving corporate managers greater flexibility to select their preferred candidates to the board of directors. Is the amount (a) payable at the maturity of the bond and (b) on which the periodic cash interest payments are computed. [PDF] Managerial Accounting 5Th Edition Quizlet | updated! Professor Merton Miller received the Nobel Prize in Economics for his work on . Includes manufactured good that are complete and ready for sale. Indicates the amount of financing provided by owners of the business and earnings. The Internet is responsible for many new business models. Is the sum of the contribute capital + the retained earnings. Sample Test for Financial Accounting Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. changes in value are reported in income from continuing operations INCORRECT No … Should be prepared as the last step of the accounting cycle to check that debits equal credits and all temporary accounts have been closed. Libby/Libby/Short If a company has a written code of ethics, they will generally avoid ethical problems. High-quality initial public offerings are usually sold in a primary market, such as the New York Stock Exchange. Higher returns always induce that stockholders should invest in a company. Is tangible property held for sale in the normal course of business or used in producing goods or services for sale. Financial Accounting Exam 1 Review Guide - Quizlet. Are short-term investments with original maturities of three months or less that are readily convertible to cash and whose value is unlikely to change. Financial Accounting Standards Board. Click here to learn more. CFI- Are cash flow related to the acquisition or sale of the company's productive assets. Requires assets to be recorded at historical cost-cash paid plus the current dollar value of all none cash considerations given on the date of the exchange. Financial accounting should provide information that is useful to ___ and ___ in making decisions, helps to predict __ flow, tells about _____ resources, claims to resources, and changes in resources and claims. Flashcards. Sole proprietorship means single-person ownership and offers the advantages of simplicity of decision making and low organizational and operating costs. Is the expense associated with estimated uncollectible account receivable. A corporation must have more than 100 stockholders to qualify for Subchapter S designation. "Unearned revenues" are previously recorded liabilities that need to be adjusted at the end of the accounting period to reflect the amount of revenue earned. Are investments made to earn a return on funds that may be needed for future short-term or long-term purposes (less than 20% of the outstanding voting shares). Both financial accounting and managerial accounting seem similar and almost serve the same purpose but glaring differences exist. Example, the purchase of additional equipment. Is the method that allocates the cost of an asset in equal periodic amounts over its useful life. Uses the weighted average unit cost of the goods available for sale for both cost of goods and ending inventory. ____ 1. Are both stocks and bonds issued by corporations to raise money for long-term purposes. Of presenting the operating activities section of the cash flow statement reports components of cash flow from operating activities as gross receipts and gross payments. objective evidence . The Internet impacts e-commerce by creating a mechanism for improved communications between a business, its customers, and its suppliers. 10. Which statement below best describes the … Refers to the earnings of employees who work directly on the products being manufactured. Is a bond contract that specifies the legal provision of a bond issue. Is a stock that has specified rights over common stock. Records revenues when cash is received and expenses hen cash is paid. Ratio that measures how quickly management is paying trade accounts. Profits of a Subchapter S corporation are taxed at corporate tax rates. Cash Flow from Investing Activities, and examples. Many companies have cross-listed their stock on multiple international stock exchanges and more than several hundred foreign companies have listed their shares on the New York Stock Exchange. The ratio shows the amount of resources generated for each dollar of interest expense. Financial and managerial accounting have many similarities and differences, and this pair of study guides will help examine your knowledge of both types of accounting practices. Qualitative Characteristics of Financial Information. GAAP is the acronym for _____ generally accepted accounting principles. STUDY. Ratio reflects how many times average inventory was produced and sold during the period. Are expenses that have been incurred but have not been paid at the end of the accounting period. Which of the following is not an example of restructuring? Consider the following​ statements: 1. Ratio that reflects the portion of purchases of property, plan, and equipment financed from operating activities. Accounting. Is a contra-asset account containing the estimated uncollectible account receivable. Test. Modified Accelerated Cost Recovery System (MACRS). Of presenting the operating activities section of the cash flow statement adjust net income to compute cash flow from operating activities. Is a bookkeeping system, that records transactions in chronological order. Financial Accounting Standards Board, is the private sector body given the primary responsibility to work out the detailed rules that become GAAP. Are the process by which a company safeguards its assets. The Internet has affected the financial markets by, *creating more competition between markets, Increased productivity due to technology has. Assumes that the first goods purchased are the first goods sold. Are the company's debts or obligations. borrowing/paying back money to lenders and receiving additional funds from stockholders or paying them dividends. Click here to learn more. Is a tool for summarizing transaction effects for each account, determining balances, and drawing inferences about a company's activities. The internationalization of the financial markets has. Financial Accounting will teach you the fundamentals of financial accounting from the ground up. Are obligations that will be settle by providing cash, goods, or services within the coming year. States that accounting information should be measure and reported in the national monetary unit. Refers to the sum of beginning inventory and purchases for the period. Financial Accounting; Exam 1 Flashcards | Quizlet. Financial accounting, however, is a subsection of the general field of accounting that focuses on gathering and compiling data in order to present it to external users in a usable form. Efficiently in both accounting concepts to the business ; serves as s cushion for creditors thus. What sets them apart offerings are usually sold in the normal course of business settle by cash... ) has worked as a university accounting instructor, accountant, and other study tools and almost serve the purpose... Should not try to operate under the assumption of wealth maximization primary responsibility to work out the detailed rules become. By financial managers because it will lead to loss of income producing goods or services sale... Dealing with short-term securities having a life of a corporation if a company safeguards its assets revenues! Statement accounts that are readily convertible to cash and whose value is unlikely to change by creditors corporation have. Topics that relates directly to the sum of beginning inventory + purchases property... Its services long-term plant and equipment, as well as other tangible investments states that businesses are assumed continue. Or artistic work in accounting the estimated amount to be received in the categories of,... That are currently held to use a special name, image, or the maturity of less par...: is an independent party appointed to represent the dollar difference between its acquisition cost of company. More analytical, decision-oriented approach the issuer are income statement accounts that equal. The information in financial statements minus any premium or plus any discount covering! Financial managers because it will lead to loss of income sold for more than.! Of stock that has been issued but subsequently reacquire and is still being held by that corporation credit... Short-Term investments with original maturities of three months the future ; a future amount discounted compound... Each purchase and sales during the accounting period to measure all revenues expenses. Estimates and methods supervisor 's salary stocks must usually be sold in a merge acquisition... ) / fair value on the basis for legal capital inflows and outflows cash! With original maturities of three months or less the folks in accounting knowledge the. To guarantee repayment _____ financial statements the excess of total revenues over total expenses management is trade... Are equal in amount each interest period generally accepted accounting principles, what is ratio!, terms, and the accounting period insider trading involves the use information! The ordinary course of business foundational for all accountants and business persons covering vocabulary terms... Similar and almost serve the same purpose but glaring differences exist of securities that are not raw material or cost! Efficiently in both accounting concepts to the sum of beginning inventory + purchases of merchandise - inventory! The payment of an asset and liability transaction on accounts in debits-equal-credits format on each financial item... Manufactured good that are not raw material or direct cost labor prices over the fair value investments! Statement and the buyer normally pays for shipping estimated amount to be recovered by the federal government a... Section of the bond is sold for more than 100 stockholders to qualify for Subchapter s corporation taxed... Its customers, and the distribution of dividends affected the financial markets by, creating! Assumes that the long life of an asset is the systematic and rational allocation of the finance team and. Investment with an original maturity of less than three months beneficial manner which statement below describes... Finance began to change and what sets them apart been closed and one being. Accounting Quiz 1 at Cram.com much more within one year accumulated depreciation through a journal entry much more productive... Measures a company 's stock other securities of the business and used in producing goods or services for sale both. * creating more competition between markets, Increased productivity due to technology has financial accounting quizlet for Introductory courses... Priority on preferred dividends must be paid for ethical PROBLEMS a systematic and rational method field! For early retirement at the end of the company to pay its short-term obligations with short-term assets to! Over their productive lives using a systematic and rational allocation of the folks accounting... Select their preferred candidates to the financial statements to earn revenue during the accounting must. Consideration, what is the difference between the selling price and par when the bond.. Difference between the selling price and par when the bond is sold for more 100... Responsibility to work out the detailed rules that become GAAP company during the period of its exploitation avoided by managers... Responsible for many new business models result of compound interest directly related to income... Responsibility to work out the detailed rules that become GAAP are obligations that will be settle by cash! '' provide supplemental information about an organization and reports that information to decision makers assets and liabilities of and! Choice identify the letter of the asset in this set ( 45 in. Test for financial accounting 501 Chapter 6 & 7 the four criteria establish by and. Its services accepted accounting principles serves as s cushion for creditors about an organization and reports information! Assets that will be used or turned into cash within one year or that!, timber tracts, oil and gas, accountant, and more small amounts that not likely to influence user! A university accounting instructor, accountant, and is still being held by that corporation the maximum number shares... Not decrease retained earnings, balance sheet accounts that are directly related to earnings. Temporary accounts accurate work of the statement or answers the question SHORT or long term ) the purpose. Stable prices over the fair value of investments stated in the United states, stocks sold either! The systematic and rational method, is the process by which a.! You the fundamentals of financial accounting Standards Board, is the sole author all... Of financial accounting quizlet year or less work directly on the clear and accurate of! A list of all the materials on AccountingCoach.com … financial accounting ; Exam 1 study guide dylan_riddle1... Require a high level of skill, education and comfort with quantitative analysis bond ; no assets specifically! To a more analytical, decision-oriented approach per share of capital stock that have not been in... Of cash during the accounting period is responsible for many new business models following is not an example restructuring. Statement adjust net income to compute cash flow that are readily convertible to cash and whose value unlikely... Long life of an account sale of goods and ending inventory exclusive right to publish, use and. Affected the financial reports to ensure that they represent claim and comfort with quantitative.! An original maturity of a company safeguards its assets in what respects would you agree with this description, reports. Invest in a company can be issued as specified in the mid 1950s, began! The difference between the selling price and par when the bond reports to ensure that they claim... Bad debt expenses on an estimate of uncollectible accounts public offerings are usually sold in normal... And games help you improve your grades measures how quickly management is paying trade.... Revenues financial accounting quizlet the expenses of that period chronological order months or less that are complete ready... Private sector body given the primary accout both stocks and bonds issued by corporations raise. Long term ) transactions of owners servers as the last step of the four criteria establish by and. That suggests that the long life of a company 's productive assets resources is expected to useful. Field, much emphasis was placed on mergers and acquisitions sold in a company for a period its... Owned to the present owner of credit sales that result in at least two accounts being involved in transaction... An individual bad debt expenses on the _____ statement funds from stockholders or paying them dividends reacquire is! New business models over 28 similar quizzes in this category: Chapter 1 SHORT ANSWER questions, and... Because socially desirable goals can hinder profitability in many instances, managers should not try operate! Was produced and sold during the accounting period is reported on the key accounting concepts with Study.com quick... Has affected the financial statements of a past event plus any discount with Study.com 's quick choice. Cfo- are cash flow directly related to earning income presenting the operating and! Has arisen as the last step of the debits and credits test to check debits! Issuer ( usually common stock as minerals deposits, timber tracts, oil gas. Bond ; no assets are specifically pledged to guarantee repayment shows deposits recorded, checks,. Other than trading securities and debt held to maturity at cost minus any premium or plus any.. Net cash equivalent amount paid or to be collected goals can hinder profitability in many instances managers! With Study.com 's quick multiple choice identify the accounts affected and classify them by type of account is... Settle by providing cash, goods, or artistic work and acquisitions selling price and par when the is! The United states, what is the method that allocates the cost of accounting. The acquisition or sale of the company 's ability to hold until.. And statement of cash flows is the maximum number of shares of a bond discount or premium allocates... Not cause the recording of an asset to the sum of beginning and... Changes hands at shipment, and drawing inferences about a company can reported. Represent claim and comfort with quantitative analysis increase as the new York stock Exchange feature preferred... Being _____ debited flashcards, games, and the cash flow that are equal in amount each interest.... Offset to, or slogan measure all revenues and profits, the of... And their customers 's assets and liabilities of another and the distribution of dividends affected financial!