Accounting Quiz 3 Laurie Wood

Book value – This value is the difference between an asset and accumulated depreciation..
Cumulative Preferred Stock – Shares receive priority for future dividends, if dividends were not issued in previous year
A subsequent event for an entity with a December 31, 2013, year-end would not include – A change in the estimated useful lives of equipment in January 2014.
straight line depreciation – the asset will depreciate at the same dollar amount each year for its useful life
financing activities – the activities associated with raising money to establish the operations of the business (sell ownership and borrow)
FCF – free cash flow
=+NOPAT
+Depreciation& Amortization
– Capex
+/- change in OWC
+- change in other long term operating assets/liab
CHARTER – DOCUMENT THAT GIVES THE STATE'S PERMISSION TO FORM A CORPORATION
AUDIT – Is an examination of the financial reports to ensure they represent what they claim and report with GAAP
Divide the fractions.3/8 ÷ 1/4 =
Employee Voluntary Deductions – Employers owe voluntary amounts withheld from employees' gross pay to the designated agency
3rd step of Accounting Cycle – prepar journal to general ledger
Annuity – Is a series of periodic cash receipts or payments that are equal in amount each interest period.
SEC – oversees the financial markets in america and have legal authority to establish accounting standards but delegate authority to the FASB
Bookkeeping – the recording of financial information in a prescribed manner.
What does an accounting system consist of and what does it do? pp 6 – An accounting system consists of the personnel, procedures, technology, and records used by an organization 1. to develop accounting information and 2. to communicate this information to decision makers. In every case, the basic purpose of the accounting system remains the same: to meet the organization's needs for information as efficiently as possible.
GENERAL EXPENSES – EXPENSES INCURRED THAT ARE NOT RELATED TO MARKETING THE COMPANY'S PRODUCTS

EXAMPLE: WAGES

Divide the frаctiоns.3/8 ÷ 1/4 =
How much the company incurs to support primary business operations is reported – as operating expenses

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