AC210 - Handout 1

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Across
  1. 5. Economic resources owned or controlled by a company (expected to ↑ cash inflows or ↓ outflows). What liabilities and stockholders' equity equals.
  2. 6. Acronym for rules used in the US to calculate and report information in the financial statements.
  3. 8. The language of business.
  4. 11. Generated when the total amount earned from selling goods and services is greater than all the costs incurred to generate those sales.
  5. 12. Reports the amount of assets, liabilities, and stockholders’ equity of an accounting entity at a point in time.
  6. 13. Business owned by 1 person; owner is personally liable for all business debts.
  7. 14. When Revenues > Expenses, also known as profit.
  8. 16. Distributions of profits/earnings to owners; reported as a reduction in Retained Earnings.
  9. 17. Activity part of the Statement of Cash Flow. Involve transactions buying and selling productive resources with long lives, purchasing investments, and lending to others. (Long Term Assets).
  10. 18. Amounts earned from selling products or services to customers.
  11. 19. Owners’ claims to a company’s resources (stockholders/shareholders). What cash minus liabilities equals.
  12. 21. When Revenues < Expenses.
  13. 22. Truth or False: The four basic financial statements will NEVER connect to one another.
  14. 24. Truth or False: There are notes to the financial statements that help users understand how the amounts were derived and what other information may affect their decisions.
Down
  1. 1. Reports a company’s revenues less expenses over a period of time.
  2. 2. An obligation, financial, or service-based, between two parties that hasn’t been fulfilled or paid in full (creditors). What cash minus stockholders' equity equals.
  3. 3. A separate entity from both a legal and accounting perspective. Public or private business whose owners are not liable for business debts.
  4. 4. Business owned by 2 or more people; they’re personally liable for all business debts.
  5. 7. Acronym for independent organization with primary responsibility for establishing U.S. GAAP.
  6. 9. Statement of _________. Reports the way that net income and dividends distribution affected the financial position of the company during the period.
  7. 10. Statement of _________. Reports cash receipts & cash payments over a period of time in the categories of operating, investing, and financing.
  8. 13. Acronym for the Congressional Act that provides regulation of auditors and the services they offer.
  9. 15. Activity part of the Statement of Cash Flow. Involve transactions borrowing from banks, repaying bank loans, receiving cash from stockholders for company stock, or paying dividends to stockholders. (Long Term Liabilities & Stockholders’ Equity).
  10. 20. Activity part of the Statement of Cash Flow. Involve transactions directly from running the business to earn profit. (Current Assets & Current Liabilities).
  11. 23. All costs “incurred” when doing business that are necessary to earn revenues.