Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Accounting chapter 2
Accounting 203 GMU - chapter 2
| Question | Answer |
|---|---|
| on a classified balance sheet what assets are listed | 1. current assets 2. long term investments 3. property, plant, and equipment 4. intangible assets |
| on a classified balance sheet what liabilities and stockholders equity are listed | current liabilities long-term liabilities stockholders equity |
| what is the operating cycle? | is the average time required to go from cash to cash in producing revenue |
| earning per share (EPS) | net income - preferred dividends/ weighted average common shares outstanding |
| working capital | current assets - current liabilities |
| current ratio | current assets / current liabilities |
| debt to asset ratio | total liabilities / total assets |
| free cash flow | net cash - capital expenditures - cash dividends |
| GAAP | generally accepted accounting principles |
| SEC | securities and exchange commission |
| FASB | financial accounting standards board |
| IFRS | international financial reporting standards |
| what are the enhancing qualities | 1. comparability 2. verifiability 3. timeliness 4. understandability |
| assumptions in financial reporting | 1. monetary unit assumption 2. economic entity assumption 3. periodicity assumption 4. going concern assumption MEPG |
| two qualities of useful information | relevance faithful representation |
| relevance | the quality of information that indicates the inf makes a difference in a decision |
| faithful representation | the desire to minimize errors and bias in financial statements |
| comparability | ability to easily evaluate one company's results relative to another |
| consistency | a company's use of the same accounting principles and methods from year to year |
| monetary unit assumption | reporting only those things that can be measured in dollars |
| economic entity assumption | tracing accounting events to particular companies |
| periodicity assumption | the practice of preparing financial statements at regular intervals |
| going concern assumption | belief that a company will continue to operate for the foreseeable future |
| historical cost principle | a belief that items should be reported on the balance sheet at the price that was paid to acquire the item. |
| full disclosure principle | the reporting of all information the would make a difference to financial statement users |
| materiality | the judgment concerning whether an item is large enough to matter to decision makers |
Created by:
goudakid78
Popular Accounting sets