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Related Flashcards
Related Topics
Cards In This Set
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Define Accounting
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Is a system that measures, processes, and communicates financial information about an economic activity to a specific enity
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Types of Accounting
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Financial, Managurial, Governmental, FBI, Auditing, taxiation, Forensic
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Opinions on Auditing
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Modified opinion- 1st level
Qualified- 2nd
Adverse- 3rd
disclaimer of opinion- cannot be used in the place of an adverse
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Forms of Business
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Sole Properietorship
Partnership
Corporation
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Accounting Equation
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Assets equal libilities plus Stockholders equity
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Financiial Statement contains
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Income statement
balance Sheet
Statement of Retained Earnings
Statement of Cash Flow
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Recognition Issue
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Refers to the difficulty of deciding WHEN a business transaction should be recorded
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Valuation Issues
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Focuses on assigning a monetary value to a business transaction.
How Much?
Historical cost- Building, land
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Classification Issue
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Assigning all the transactions in which a business engages to app. categories, or accounts
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Extended Accounting Equation
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Assets equal liabilties plus common stock plus retained earning minus dividends plus revenues minus expenses.
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Stockholder equity
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Common stock plus retained earning minus dividends plus revenues minus expenses
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Accounts
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Basic units for accumulating and storing accounting data from similar transactions
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Debit (side)
Credit (side)
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Left
right
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Ledger
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Is a book of final entry. keeps a running total
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Posting
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The process of transferring journal entry information from the journal to the ledger
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