Save
Upgrade to remove ads
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
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

Interm Acct. 2

QuestionAnswer
Change in Accounting Estimate Handled prospectively; affects current and future periods only.
Examples of Accounting Estimates Useful life, salvage value, bad debt %, warranty estimates.
Change in Accounting Principle Handled retrospectively; restate prior periods.
Examples of Accounting Principles FIFO to Weighted Average, Percentage of Completion to Completed Contract.
Correction of Error Prior‑period adjustment; fix beginning retained earnings and restate prior statements.
Prior‑Period Adjustment Adjustment to beginning retained earnings due to an error.
Retained Earnings Formula Beginning RE + Net Income – Dividends = Ending RE.
Gross Profit Revenue – Cost of Goods Sold.
Income from Continuing Operations Operating income + other revenues/expenses – interest – taxes.
Net Income Income from continuing operations ± discontinued operations.
Basic EPS Formula (Net Income – Preferred Dividends) ÷ Weighted Average Shares.
Single‑Step Income Statement Groups all revenues together and all expenses together; one subtraction.
Multi‑Step Income Statement Shows gross profit; separates operating vs non‑operating sections.
Income Statement Accounts Revenues, expenses, gains, losses, net income.
Statement of Retained Earnings Accounts Beginning RE, net income, dividends, ending RE.
Balance Sheet Accounts Assets, liabilities, equity.
Statement of Cash Flows Sections Operating, investing, financing.
Operating Cash Flows Net income, depreciation, changes in current assets/liabilities, interest paid, taxes paid.
Investing Cash Flows Buying/selling equipment, investments, lending money.
Financing Cash Flows Issuing stock, borrowing money, paying dividends, repaying principal.
Reconciling NI to Operating Cash Flow Add depreciation; subtract gains; add losses; adjust for changes in current assets/liabilities.
Current Assets Cash, A/R, inventory, prepaids.
Long‑Term Assets PPE, intangibles, long‑term investments.
Current Liabilities A/P, salaries payable, unearned revenue, short‑term notes.
Long‑Term Liabilities Bonds payable, long‑term notes, lease liabilities.
Comprehensive Income Net income + other comprehensive income.
Other Comprehensive Income (OCI) Unrealized gains/losses on AFS securities, foreign currency adjustments, pension adjustments, hedge adjustments.
Intangible Assets Patents, trademarks, copyrights, franchises, goodwill.
Purchased Intangibles Capitalized and amortized if finite life.
Internally Developed Intangibles Usually expensed
Financial Statement Relationship: Net Income Flows into retained earnings.
Financial Statement Relationship: Ending RE Appears in equity on the balance sheet.
Financial Statement Relationship: Ending Cash Must match cash on the balance sheet.
Financial Statement Relationship: Cash Flow Statement Explains change in cash between periods.
Accounting Equation Assets = Liabilities + Equity.
Cash Flow Equation Operating + Investing + Financing = Net Change in Cash.
Created by: user-1751855
 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards