4404

Accounting

Income statement

Accounting system

Independent audit

Assets

Journals

Balance sheet

Ledger

Bookkeeping

Liabilities

Cash flow

LIFO

Certified public accountant (CPA)

Liquidity

Cost of goods sold

Managerial Accounting

Current assets

Net income

Depreciation

Net sales

Expenses

Operating expenses

FIFO

Other (intangible) assets

Financial accounting

Owner’s equity

Financial statements

Private accountant

Fixed assets

Public accountant

Fundamental accounting equation

Retained earnings

Gross margin (profit)

Revenue

Trial balance

1

Financial statement which reports the

.

financial position of a firm at a specific

date. Balance sheets are composed of

assets, liabilities, and owners' equity.

2

Items that are not included in the

.

current and fixed assets categories. This

catch-all category includes items such as

patents and copyrights.

3

Recording devices used for the first

.

recording of all transactions.

4

The provision of information and

.

analyses to managers within the

organization to assist them in decision-

making.

5

Amounts owed by the organization to

.

others. Current liabilities are due in 1 year

or less.

6

The various costs incurred in running a

.

business, including rent, salaries, and

utilities.

7

Resources, including cash or noncash

.

items, that can be converted to cash within

1 year.

8

Accountants who work for a single

.

company.

9

Assets = liability + owners' equity;

.

it is the basis for the balance sheet.

1

Costs incurred in operating the

0.

business, such as rent, utilities, and

salaries.

1

Financial

statement

which reports

1.

revenues and expenses for a specific period

of time, showing the results of operations

during that period. It summarizes all the

resources that came into the firm

(revenues) , and all the resources that left

the firm and the

resulting net income.

1

The preparation of financial statements

2.

for people outside of the firm (for example,

investors).

1

Recording device in which information

3.

from accounting journals is categorized

into homogeneous groups and posted so

that managers can find all the information

about one account in the same place.

1

Reports on the success and position

4.

(condition) of a firm; they include the

income statement and balance sheet.

1

Assets minus liabilities.

5.

1

Net sales minus cost of goods sold.

6.

1

Accounting technique

for calculating

7.

cost of inventory based on last in, first out.

1

The

recording,

classifying,

8.

summarizing, and interpreting of financial

events and transactions that affect the

organization. It may also be viewed as the

measure-ment and reporting (inside and

outside the organization) of financial

information about the economic activities

of the firm to various users.

1

The value of what is received for goods

9.

sold, services rendered, and other sources.

2

Sales revenue minus discounts, returns,

0.

and other adjustments made for customers.

2

Economic resources owned by a firm,

1.

such as land, buildings, and machinery.

2

The difference between cash receipts

2.

and cash disbursements.

2

A particular type of expense measured

3.

by the total cost of merchandise sold

(including costs associated with the

acquisition, storage, transportation in, and

packaging of goods).

2

The amount left after a company

4.

distributes some of its net income (profit)

to stockholders in the form of dividends.

2

Resources of a permanent nature, such

5.

as land, buildings, furniture, and fixtures.

2

Revenue minus expenses.

6.

2

The methods used to record and

7.

summarize accounting data into reports.

2

The recording of economic activities.

8.

2

Summary of all the data in the ledgers

9.

to test the accuracy of the figures.

3

Ability of an asset to be converted to

0.

cash.

3

Accountants who pass a series of

1.

examinations established by the American

Institute of Certified Public Accountants

(AICPA) and meet the state's requirements

for education and experience.

3

Accounting technique for calculating

2.

cost of inventory based on first in, first out.

3

Assets such as machinery lose value

3.

over time; therefore, part of the cost of the

machinery is calculated as an expense each

year, over its useful life.

3

An evaluation and unbiased opinion

4.

about the accuracy of company financial

statements.

3

Accountant who provide services for a

5.

fee to a number of companies; they can

conduct independent audits.

36

Independent audit

Bookkeeping

Accounting

Accounting system

Managerial accounting

Public accountant

CPA

Private accountant

Financial accounting

Concerned

with

measuring

and

.

reporting costs, budgeting, and decreasing

tax liabilities

Accountants

who

conduct

an

.

independent audit. They may design an

accounting system, prepare or do taxes, or

provide other assistance.

The methods used to record and

.

summarize

data,

they

may

be

computerized so as to enable a firm to get

daily financial reports.

Records, classifies,

summarizes,

and

.

interprets

financial

events

and

transactions.

Recording

of

transactions

from

.

original transaction

documents

into

journals.

These accountants must pass a series

.

of exams, and have prestige among their

peers and the business community

This person may pass an exam to

.

become а СMA, but may not be a CPA.

They work for a single business,

government

agency

or

nonprofit

organization.

The preparation and analysis of

.

financial statements for outside interests.

This is an

unbiased evaluation about

.

the accuracy

of company financial

statements.

1

Cash

.

2

Retained earnings

.

3

Accounts payable

.

4

Interest

.

5

Rent

.

6

Land

.

7

Commission revenue

.

8

Gross sales

.

9

Capital stock

.

38

1

Copyright

0.

1

Notes payable

1.

1

Accounts receivable

2.

1

Equipment

3.

1

Advertising

4.

1

Wages

5.

1

Retained earnings

6.

1

Accrued expenses

7.

1

9

.

.

2

1

.

0.

3

1

.

1.

4

1

.

2.

5

1

39

.

3.

6

1

.

4.

7

1

.

5.

8

1

.

6.

1

7.

A balance sheet is not like a Profit

But whatever happens to the

and Loss account, which is a record of

composition of the assets of the business,

the

………....(0)………………..

any overall change in asset

transacted in a year and the profits (or

………………(26)

… ……………

is

losses) produced as a result. A balance

reflected in the balance sheet. There is one

sheet can be …………..(21)……………

further

………….. (27) ……………. to

of as a photograph, a moment

be made. Although the principle of a

……………(22)…………….time

balance sheet is to have assets on one side

(usually the least day of the company’s

and liabilities on the other, the fact is that

financial year) which shows exactly

– especially for public companies –

what the business owns. These may be

shareholders want to be able to see what

buildings, cash, stocks or debts, i.e.

their ………….. (28)…………….. in the

amounts

of

money

company is worth.

…………….(23)…………….to

the

business by customers.

So

a

tradition

has

A balance sheet may change from

……………..(29)…… ………. up which

one year to the next if, for example, a

has meant that “Creditors” is actually

company sells one of its factories, if it

moved to the assets side as a negative

……………..(24)………………

more

amount. Structuring the balance sheet like

money from its shareholders, if it repays

this is simply a matter of

some debt to the bank, or if it builds up

………………(30)…. …………. . There

its

inventory

of

is no commercial reason for presenting it

……………(25)………………..

in this way.

A

B

C

D

0

A

business

B

activity

C

work

D

commerce

2

A

consider

B

thought

C

imagined

D

treated

1