liabilities goes on the

balance sheet

net increase or decrease in cash goes on the

statement of cash flows

revenues goes on the

income statement

total liabilities and equity goes on the

balance sheet

private accounting is

accounting employees working for business

public accounting is

business offering audit, tax, and advisory services

fraud triangle includes

opportunity, pressure/incentive, and rationalization

assets:

resources a company owns or controls

liabilities

creditors claims on assets, obligation to provide

equity

shareholder claim on assets

income statement:

revenues and expenses compute net income or less over a period of time (revenues- expenses)

statement of retained earnings

changes in retained earnings from net income and dividends over a period of time (beginning retained earnings + net income- dividends = end retained earnings)

balance sheet

financial position at any point in time

(assets = liability +equity)

statement of cash flows

cash flow in or out over period of time

(operating +/- investing +/- financing = change in cash

accounts recievable is an

asset

salaries payable is a

liability

common stock is a

stockholder's equity

land is a

asset

prepaid insurance is a

asset

supplies is a

asset

unearned revenue is a

liability

dividends are

stockholder's equity

dividends are found on the

statement of retained earnings

customer layaway is

liability

customer layaway found on the

balance sheet

land is found on the

balance sheet

depreciation expense is a

stock holder equity (expense)

depreciaion expense found on the

income statement

salary payable is a

liability

salary payable found on the

balance sheet

accounts recievable is a

asset

accounts receivable is found on the

balance sheet

investments are a

asset

investments found on the

balance sheet

interest expense is a

stockholder equity

interest expense found on the

income statement

retained earnings is

stockholder equity

retained earnings found on the

statement of retained earnings

labor costs for accounting department at the corporate office are what kind of cost?

period cost

wheels for rolling coolers are what kind of cost?

direct materials and prime

property taxes on the manufacturing facility are what kind of cost?

overhead and conversion costs

lid hinges for hard-sided coolers are what kind of cost?

direct materials and prime

direct costs:

traced back to product

indirect costs:

cannot be traced back to product

direct materials

crucial part of finished product is

direct labor

directly convert materials to finished products

factory overhead

not directly tied into making the finished product

prime costs

direct materials and direct labor

conversion costs

overhead and direct labor costs

period costs

nonproduction, linked to time period

direct materials equation:

beginning raw materials inventory + purchases - ending raw material inventory = direct materials used

total manufacturing costs equation:

direct labor + manufacturing overhead = total manufacturing costs

cost of goods manufactured equation:

direct materials + direct labor + manufacturing overhead + beginning work in progress inventory - ending work in progress inventory

cost of goods manufactured income statement:

Sales Revenue − Cost of Goods Sold: Beginning Finished Goods Inventory + Cost of Goods Manufactured − Ending Finished Goods Inventory = Cost of Goods Sold = Gross Profit