Financial Accounting Quiz 1 – Flashcards
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S.E.C
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security commissions exchange
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whats the sec's role and why did it start
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regulate publicly owned companies, due to the stock market crash in 1929
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GAAP
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generally accepted accounting principles
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balance sheet
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statement of financial position, picture of assets, liabilities, and stockholders equity...A=L+SE
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assets
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something of value that you own
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liability
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claims of creditors, something you owe
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stockholders equity
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claims of owners, something you owe
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retained earnings
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net income retained
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paid in capital
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capital obtained by sale of stock
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revenue
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increase in assets from business operations
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expense
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used up asset
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value of asset
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ability to produce more assets
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net income
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R-E
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income statement
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results of operation, R-E=NI
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statement of retained earnings
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ties together balance sheet and income statement
