Security scan is checking this page.

Contents - Lessons & Practice

Business

Principles of Accounting, Volume 1: Financial Accounting

OpenStax book

OS

Chapter set

Principles of Accounting, Volume 1: Financial Accounting

OpenStax · one set on each chapter

This margin

—

No score yet

In the bank

320

items, drawn without repeats

Questions from the 16 chapters of Principles of Accounting, Volume 1: Financial Accounting. Each item asks for a term, a definition, or a claim the chapter itself states.

Questions this set

What to study

Finish a set and the weakest chapters will collect here.

Open the OpenStax book

OpenStax

Principles of Accounting, Volume 1: Financial Accounting

16 lessons

One lesson for each chapter of Principles of Accounting, Volume 1: Financial Accounting, in the book’s order. The lesson teaches what that chapter says you need to know, then checks it.

  1. 1Role of Accounting in SocietyFinancial accounting measures performance using financial reports and communicates results to those outside of the organization who may have an interest in the company’s performance, such as investors and creditors
  2. 2Introduction to Financial StatementsThe income statement lists revenues, expenses, gains, and losses, which make up net income (or net loss)
  3. 3Analyzing and Recording TransactionsThe Financial Accounting Standards Board (FASB) is an independent, nonprofit organization that sets the standards for financial accounting and reporting standards for both public- and private-sector businesses in the…
  4. 4The Adjustment ProcessThe next three steps in the accounting cycle are adjusting entries (journalizing and posting), preparing an adjusted trial balance, and preparing the financial statements.
  5. 5Completing the Accounting CycleTemporary accounts: Temporary accounts are closed at the end of each accounting period and include income statement, dividends, and income summary accounts
  6. 6Merchandising TransactionsTheir operating cycle begins with cash-on-hand, providing service to customers, and collecting customer payments
  7. 7Accounting Information SystemsAn accounting information system is a set of business processes that record transactions using journals and ledgers (a paper-based system) or computer files (using a computerized system) to keep track of a company’s…
  8. 8Fraud, Internal Controls, and CashDue to the nature of their functions, internal and external auditors, through the implementation of effective internal controls, are in excellent positions to prevent opportunity-based fraud
  9. 9Accounting for ReceivablesAccounts receivable must satisfy the following criteria: the customer owes money and has yet to pay, the amount is due in less than a company’s operating cycle, and the account usually does not incur interest
  10. 10InventoryThe total cost of goods available for sale is a combination of the beginning inventory plus new inventory purchases.
  11. 11Long-Term AssetsExamples of intangible assets are patents, trademarks, copyrights, and goodwill
  12. 12Current LiabilitiesCommon examples of current liabilities include accounts payable, unearned revenue, the current portion of a noncurrent note payable, and taxes payable
  13. 13Long-Term LiabilitiesA bond indenture is a legal document containing the principal amount, maturity date, stated interest rate and other requirements of the bond issuer
  14. 14Corporation AccountingThe disadvantages of operating as a corporation include the costs of organization, regulation, and potential double taxation
  15. 15Partnership AccountingMutual agency and unlimited liability should be weighed against the tax benefits of partnership
  16. 16Statement of Cash FlowsPreparing the operating section of statement of cash flows by the indirect method starts with net income from the income statement and adjusts for items that affect cash flows differently than they affect net income