Account 1

Card Set Information

Author:
mapworkman
ID:
192330
Filename:
Account 1
Updated:
2013-01-11 21:24:33
Tags:
account
Folders:

Description:
chapter 1
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user mapworkman on FreezingBlue Flashcards. What would you like to do?


  1. Balance sheet
    Purpose?
    Structure?
    Accounts?
    • -Reports the financial position(economic resources and sources of financing) of an accounting entity at a point in time
    • -Assets = Liability + Stockholder's Equity
    • -Cash, accounts receivable. plant and equipment, notes payable, contributed capital
    • Book value not equal to Market Value (what people value)
  2. Income statement
    Purpose?
    Structure?
    Accounts?
    • Reports the accountant's primary measure of economic performance during the accounting period.
    • Revenue - Exprenses = net income
    • Sales revenue, cost of goods sold, selling expense, interest expense.
    • Accounting Earning not equal Economic Earning (recognized at different time)
  3. Statement of Retained Earnings
    Purpose?
    Structure?
    Accounts?
    • Reports the way that net income and the distribution of dividends have affected the financial position of the company during the accounting period.
    • Beginning RE + Net income - Dividends = Ending RE.
    • Net income is taken from the income statement; dividends are distributions to stockholders
  4. Statement of Cash Flows
    Purpose?
    Structure?
    Accounts?
    • Reports inflows (receipts) and outflows (payments) of cash during the accounting period in the categories operation, invsting, and financing.
    • +/- CFO(cash flows from operating activities +/- CFI +/- CFF = Change in Cash
    • Cash collected from customers, cash paid to suppliers, cash paid to purchase equipment, cash borrowed from banks
  5. Operating activities?
    Investing activities?
    Financing activities?
    • CFO: directly related to earning income
    • CFI: related to the acquisition or sale of the company's productive assets
    • CFF: directly related to the financing of the enterprise itself
  6. Assets?
    Liabilities?
    Owners' Equity
    • Resources of the firm. 1. provide future benefit, 2 transaction or event, 3 ownership.
    • Financing provided to the firm by outsiders (customer, suppliers) 1.future sacrifice 2. transaction or event, 3 Must pay
    • Financing provided to the firm by insides
  7. Current Ratio (CR)
    Return on assets (ROA)
    L.T. Debt to equity (D/E)
    • Current Assets/Current Liabilities, a measure used to evaluate the firm's liquility.
    • Net Income/Total Assets, a measure used to evaluate the firm's profitability independent of its capital structure
    • Long-term debt/Total Owner's Equity, a measure of Leverage

What would you like to do?

Home > Flashcards > Print Preview