Accounting 2B - Unit 6 (1-6) Flashcards


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1

items owned with value

assets

2

a financial statement reporting assets, liabilities, and equity

balance sheet

3

the net worth of a company

equity

4

obligations owed to creditors

liabilities

5

the ability to convert assets into cash

liquidity

6

_____ and _____ are listed in the order of liquidity and maturity on the balance sheet.

Assets; liabilities

7

The following formula, (asset cost – resale value)/useful life, calculates _____ depreciation.

straight-line

8

Which financial statement includes revenues and expenses?

income statement

9

A business controlled by another company is called _____.

a subsidiary

10

A company that controls the operations of another company is called _____.

the parent

11

Form 1120 is due on _____ of every year.

April 15th

12

the money stockholders invested in the corporation

paid-in capital

13

stock purchased by the corporation selling it

treasury stock

14

Beginning retained earnings equals _____ retained earnings of the previous year.

ending

15

Dividend distribution is decided by the _____.

corporate board of directors

16

a financial statement tracking cash transactions

statement of cash flows

17

Obtaining a bank loan is considered a(n) _____ activity.

financing

18

Paying wages are noted in which section of the statement of cash flows?

operating

19

statements combining the financial performance of the parent and of its subsidiaries

consolidated financial statements

20

a process of comparing actual financial results to budget

variance analysis

21

Variance analysis represents the process of comparing _____.

actuals to budget