Term
| Difference between Adjusting vs Closing Entries |
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Definition
Adjusting Entry is BEFORE the Financial statements are made.
Closing Entry is AFTER the Financial statements are made. |
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Term
| Financial Accounting's focus |
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Definition
| Focuses on the performance of a business over a period with regard to profit/loss |
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Term
| Managerial Accounting's focus |
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Definition
| Focuses on divisions and increasing performance in each. |
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Term
GAAP
(Generally Accepted Accounting Principles) |
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Definition
| A set of accepted rules that are followed in a Nation. |
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Term
IFRS
(International Financial Reporting Standards) |
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Definition
| A loose set of guidelines that are widely used in over 100 countries |
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Term
| Cash based vs Accrual based Accounting |
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Definition
Cash - counts transactions that have been paid for.
Accrual - counts any transaction regardless if paid yet or not |
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Term
| Balance Sheet and the types of accounts listed in it |
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Definition
It is a statement of the financial position of a company as of the close of business on a particular day
Assets
Liabilities
Owner's equity |
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Term
| Income Statement and the types of accounts listed in it |
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Definition
contains the revenue, expenses and net income/loss of the business
A statement of the revenue generated, the expenses incurred and profit/loss resulting from the operation of the business for a particular period in time. |
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Term
| 3 types of cash flows in the Statement of Cash Flows |
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Definition
| reports the cash flows (receipts and disbursements) related to the three major business activitiesoperations, investment and financing |
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Term
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Definition
Identifies projected sales figures and revenues – sales budget
forecast of net income |
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Term
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Definition
| identifies planned investment into fixed assets |
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Term
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Definition
| This produces a budgeted balance sheet for the firm – this is developed by combining the impacts from the operational budget (projected Income Statement) and the cash and capital budgets to give an estimate of the impact the projected activity will have on the financial health of the firm. |
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Term
| Info on Comparative statements NOT on Single statements |
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Definition
| A comparative statement can show how businesses react to market conditions affecting an entire industry. |
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Term
| How does a sole-proprietorship report income for the year? |
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Definition
| It includes the income or loss from the business |
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Term
| Salary of owner appears as expense in which type of business? |
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Definition
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