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Related Flashcards
Related Topics
Cards In This Set
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Gross margin
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Gross margin: sales revenue - COGS
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Net book value of PPE
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Gross cost of PPE - accumulated depreciation
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Net income
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Gross revenue - gross expense
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EPS
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Net income/ # of outstanding shares
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Depreciation of asset
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DR: depreciation expense CR: accumulated depreciation
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Internal controls
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Separate duties recording and handling, pre-numbered checks, double signature, montly bank reconsiliation, cash flow to project future cash needs
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Key pints of GAAP/IFRS
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Us will switch to IFRS. very very smiliar (basic- almost everything in acc 200), difference in detailes (inventory, R&D), GAAP - rules, IFRS - principles
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FASB
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Norwalk connecticut. 1973. private non-profit organization. - GAAP
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IFRS
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1973. London. restructured in 2001. initially called IFSC - run by CPA's world - just description on diverse national practice - not on the HOW
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Norwalk agreement
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FASB and IFRS - work together to develop fully compatible set of standards
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Adjusting entries
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GET IT RIGHT. 1. fix blanace sheet. 2 fix income (involves one balance sheet acocunt and one income statement account ) - always changes net income
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Closing entries
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1. transfer all revenue, expense and dividends to retained earnings. 2. close out/zero out all revenue, expense, and dividends for the next year.
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Accumulated defecit
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When retained earnings is a debit
- capital stock can't be defecit |
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AOCI
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Accumulated other comprehensive income - part of owners' equity, real account, on balance sheet, credit account
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OCI
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Other comprehensive income. nominal account
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