ACIS Test 1

Card Set Information

Author:
Kimmiey
ID:
282072
Filename:
ACIS Test 1
Updated:
2014-09-04 10:46:54
Tags:
ACIS
Folders:

Description:
ACIS
Show Answers:

Home > Flashcards > Print Preview

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


  1. Accounting
    information system that identifies, records, and communicates the economic events of an organization to interested users
  2. Internal Users
    • Managers who plan, organize, and run a business
    • -Marketing managers, production supervisors, finance directors, an company officers
  3. External users
    • -Investors(owners), use accounting info to make decisions to hold, buy or sell stock
    • -Creditors, such as suppliers and bankers use accounting information to evaluate the risk of selling on credit or lending money
  4. Current assets consist of
    • Cash
    • Dept Investments
    • Accounts receivable
    • Notes recievable
    • Inventory
    • Supplies
    • Prepaid insurance
  5. Long-term investments
    • Stock investments
    • Investment in real estate
    • Land & buildings owned but not used
  6. Property, plant & equiptment (fixed assets)
    • Land
    • equipment
    • Less: Accumulated depreciation
  7. Intangible assets
    • Goodwill
    • Film library
    • Costumer lists
    • Cable tv franchises
    • Patents, trade marks, copy rights, movie rights
  8. Assets, in order of liquidity
    • Current assets
    • Longterm investments
    • Property, plant & equipment
    • Intangible assets
  9. Current Liabilities
    • Accounts payable¬†
    • Notes Payable
    • Unearned sales revenue
    • Salaries & wages payable
    • Interest payable
  10. Long-term liabilities
    • Mortgage payable
    • Notes payable
  11. Stock holders equity
    • Common stock
    • Retained earnings
  12. Qualities of useful financial info
    • Relevance - would aid in business decisions
    • Faithful representation - accurate depiction of what happened
  13. Assumptions for financial reporting
    • Monetary unit - only things that can be expressed in money are included in the accounting records
    • Economic entity - business records kept separate from other entities
    • Periodicity - business life can be broken up into artificial time periods
    • Going concern - business will continue to operate
  14. Principles in financial reporting
    • Measurement principles¬†
    • -Historical cost; assets are recorded at cost paid for them
    • -Fair value; assets are valued at the current market value
    • Full disclosure - companies much disclose all information that would make a difference to financial statement users
    • Cost constraint - cost of producing info is compared to the benefit of investors
  15. Earnings per share (EPS)
    • Profitability ratio
  16. Working capital
    • Current assets - current liabilities
    • Liquidity ratio
  17. Current ratio
    • Current assets / current liabilities
    • Liquidity ratio
  18. Dept to assets ratio
    • Total liabilities / total assets
    • Solvency ratio
  19. Free cash flow
    • CF from operating activiites - capital expenditures - cash dividends
    • Solvency ratio
  20. The accounting equation
    Assets = Liabilities + stock holders' equity
  21. Statement of cash flows
    • Cash flows from operating activities
    • Cash flows from investing activities
    • Cash flows from financing activities
    • Net increase in cash
    • Cash at beginning of period
    • Cash at end of period
  22. Cash flows from operating activities
    • cash receipts from operating activiites
    • cash payments for operating activiites
  23. Cash flows from investing activites
    Purchase office equipment
  24. CAsh flows from financing activities
    • Issuance of common stock
    • Issuance of notes payable
    • Payment of dividend
  25. Retained earnings
    • Retained earnings beginning
    • Add: Net income
    • Less: dividends and other (net)
    • =Retained earnings end
  26. Expenses
    • Cost of goods sold
    • Selling, general, and administrative expenses
    • Income tax expenses

What would you like to do?

Home > Flashcards > Print Preview