Exam (elaborations)
ACG 2021 Exam 1 (1).
ACG 2021 Exam 1 (1).
[Show more]
Seller
Follow
Content preview
ACG 2021 Exam 1Balance Sheet - ANS-a financial statement that reports the assets and claims to those assets at
a specific point in time
Basic accounting equation - ANS-Assets= Liabilities + Equity
Common Stock - ANS-the total amount paid in by stockholders for the shares they purchase
Corporation - ANS-a business organized as a separate legal entity having ownership divided
into transferable shares of stock
Dividends - ANS-payments of cash from a corporation to its stockholders
Expenses - ANS-the cost of assets consumed or services used in the process of generating
revenues
income statement - ANS-a financial statement that presents the revenues and expenses and
resulting net income or net loss of a company for a specific period of time
liabilities - ANS-the debts and obligations of a business.
Liabilities represent the amounts owed to creditors
net income - ANS-the amount by which revenues exceed expenses
net loss - ANS-the amount by which expenses exceed revenues
partnership - ANS-a business owned by two or more persons associated as partners
retained earnings - ANS-the amount of net income retained in the corporation
retained earnings statement - ANS-a financial statement that summarizes the amounts and
causes of changes in retained earnings for a specific period of time
revenue - ANS-the increase in assets that result from the sale of a product or service in the
normal course of business
sole proprietorship - ANS-a business owned by one person
statement of cash flows - ANS-a financial statement that provides financial information about the
cash receipts and cash payments of a business for a specific period of time
, stockholder's equity - ANS-the owners' claim on total assets
Classified Balance sheet - ANS-a balance sheet that contains a number of standard
classifications and sections
Conservatism - ANS-the approach of choosing an accounting method, when alternatives exist,
that will least likely overstate assets and net income
consistency - ANS-use of the same accounting principles and methods from year to year within
a company
cost principle - ANS-an accounting principle that states that companies should record assets at
their costs
current assets - ANS-cash and other resources that companies reasonably expect to convert to
cash or use up within one year or the operating cycle, whichever is longer
current liabilities - ANS-obligations that a company reasonably expects to pay within the next
year or operating cycle, whichever is longer
Financial Accounting Standards Board (FASB) - ANS-the primary accounting standard-setting
body in the US
free cash flow - ANS-cash remaining from operating activities after adjusting for capital
expenditures and dividends paid
full disclosure principle - ANS-accounting principle that dictates that companies disclose
circumstances and events that make a difference to financial statement users
Generally accepted accounting principles (GAAP) - ANS-a set of rules and practices, having
substantial authoritative support, that the accounting profession recognizes as a general guide
for financial reporting purposes
intangible assets - ANS-assets that do not have physical substance
Ex: patents, goodwill
International accounting standards board (IASB) - ANS-an accounting standard-setting body
that issues standards adopted by many countries outside of the US
liquidity - ANS-the ability of a company to pay obligations that are expected to become due
within the next year or operating cycle
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.45. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78998 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now