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Study sets matching "4 acc 2"

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Study sets matching "4 acc 2"

15 terms
Accounting 2 Chapter 4
Gross profit
Departmental margin statement
Work sheet
Income statement
The amount of revenue from sales less the cost of goods sold.
A statement that reports departmental margin for a specific d…
A columnar accounting form used to summarize the general ledg…
A financial statement showing the revenue and expenses for a…
Gross profit
The amount of revenue from sales less the cost of goods sold.
Departmental margin statement
A statement that reports departmental margin for a specific d…
24 terms
NCEA Accounting 2.4
Mark-up
Gross Profit %
Net Profit %
Expenses %
shows the increase over cost which the business is selling it…
shows the % of sales remaining to cover operating expenses
shows the % of sales which is retained as profit
shows the % of sales used for expenses
Mark-up
shows the increase over cost which the business is selling it…
Gross Profit %
shows the % of sales remaining to cover operating expenses
29 terms
Accounting 2 - Chapter 4 EOC
Fiscal Period
Responsibility Accounting
Direct Expense
Indirect Expense
The length of time for which a business summarizes and report…
Assigning control of business revenues, costs, and expenses a…
An operating expense identifiable with and chargeable to the…
An operating expense chargeable to overall business operation…
Fiscal Period
The length of time for which a business summarizes and report…
Responsibility Accounting
Assigning control of business revenues, costs, and expenses a…
10 terms
A2 Accounting Unit 4 Manufacturing accounts
prime cost
factory profit
manufacturing account
overheads
the total of direct materials, direct labour and direct expen…
the amount added to the production cost of a manufactured goo…
a financial statement that sets out the costs incurred in pro…
costs that cannot be attributed directly to a particular prod…
prime cost
the total of direct materials, direct labour and direct expen…
factory profit
the amount added to the production cost of a manufactured goo…
65 terms
Accounting 2 Test 4
standard costs
standards costs are
standard costs are used to
standard costs for direct materials
the predetermined cost of manufacturing a single unit or a nu…
performance goals
control costs... plan costs for DM, DL, and FOH... indicate where…
the price that should be paid for a single unit of materials.
standard costs
the predetermined cost of manufacturing a single unit or a nu…
standards costs are
performance goals
18 terms
Accounting Chapters 2 and 4
Account Balance
Creditors
Journalizing
Balance Column Account
The difference between total debits and total credits for an…
individuals and organizations that have rights to receive pay…
The process of recording transactions in a journal
Has columns for debits and credits like a T account. It also…
Account Balance
The difference between total debits and total credits for an…
Creditors
individuals and organizations that have rights to receive pay…
30 terms
Accounting 2.4
Mark-up %
Gross Profit %
Net Profit %
Expenses %
shows how much (%) the business increases the cost price of i…
shows the % of sales dollars that convert directly to gross p…
shows the % of sales that converts directly into net profit.
shows the % of sales dollars that have been used for a partic…
Mark-up %
shows how much (%) the business increases the cost price of i…
Gross Profit %
shows the % of sales dollars that convert directly to gross p…
14 terms
Accounting 2 - Exam 4
Zero
Variable Expense
Contribution Margin Ratio
Contribution Margin
This is the target profit at breakeven
These stay constant per unit and decrease in total as product…
(Sales - Variable Expense)/Sales
Amount available to cover fixed expense
Zero
This is the target profit at breakeven
Variable Expense
These stay constant per unit and decrease in total as product…
11 terms
Accounting Ch 4-2
Cash
Preparing the Operating Activities
Revenue and Expenses on Income Stateme…
Cash Received from Customers
Liabilities + Stockholders Equity - Noncash Assets
1) Convert sales revenues to cash receipts from customers... 2)…
Revenue --> Cash Receipts ... Expenses --> Cash Expenditures
Net income (Sales Revenue) - Change in Accounts Receivable +…
Cash
Liabilities + Stockholders Equity - Noncash Assets
Preparing the Operating Activities
1) Convert sales revenues to cash receipts from customers... 2)…
Accounting 2 vocab 4
Fiscal period
Responsibility accounting
Direct expense
Indirect expense
The length of time for which a business summarizes and report…
Assigning control of business revenues, costs, and expenses a…
An operating expense identifiable with and chargeable to the…
An operating expense chargeable to overall business operation…
Fiscal period
The length of time for which a business summarizes and report…
Responsibility accounting
Assigning control of business revenues, costs, and expenses a…
24 terms
Accounting 2 4.01
Corporation
Board of directors
Stockholders
Articled of Incorporation
An organization with the legal rights of a person and which m…
A group of persons elected by the stockholders to manage and…
Owners of a corporation
A written application requesting permission to form a corpora…
Corporation
An organization with the legal rights of a person and which m…
Board of directors
A group of persons elected by the stockholders to manage and…
44 terms
Accounting2,3,4
Balance Sheet
CPA (Certified Public Accountant)
CFO (Chief financial officer)
Credits
A document which summarizes the assets, liabilities and equit…
The American and Australian equivalent of a Chartered account…
The most senior financial manager, responsible for overseeing…
An entry showing the amount of money owed to the company by i…
Balance Sheet
A document which summarizes the assets, liabilities and equit…
CPA (Certified Public Accountant)
The American and Australian equivalent of a Chartered account…
12 terms
Accounting 2: 4.01
Corporation
Board of directors
Stockholders
Articles of incorporation
An organization with the legal rights of a person and which m…
A group of persons elected by the stockholders to manage and…
Owners of a corporation
A written application requesting permission to form a corpora…
Corporation
An organization with the legal rights of a person and which m…
Board of directors
A group of persons elected by the stockholders to manage and…
12 terms
Accounting 2: 4.01
Par value
par value stock
No-par value stock
Stated value stock
Value assigned to share of stock and printed on the stock cer…
A share of stock that has an authorized specific value printe…
A share of stock that does not have an authorized , specific…
No-par-value stock that is assigned a value by a corporation;…
Par value
Value assigned to share of stock and printed on the stock cer…
par value stock
A share of stock that has an authorized specific value printe…
25 terms
Accounting 2 Chapter 4
Predetermined Overhead Rate =
Facility-Level Activities
Product-Line Activities
Batch-Level Activities
Est. Tot. MOH cost... ---------------------... Est. Tot. Cost Driver
Activities that support the entire company (all products, all…
Activities that support a specific product line or service of…
Activities performed for a batch (group of units or customers…
Predetermined Overhead Rate =
Est. Tot. MOH cost... ---------------------... Est. Tot. Cost Driver
Facility-Level Activities
Activities that support the entire company (all products, all…
36 terms
Accounting 2 Section 4
Budgetary Controls
Budget Reports
4 Steps to Budget Control
Fixed Budget
managements use of budget to monitor and control com. operati…
comparison of company's report and actual figures;... report cards
1. develop budget... 2. compare and analyze results from predict…
Static Budget- based on single predicted amount in sales
Budgetary Controls
managements use of budget to monitor and control com. operati…
Budget Reports
comparison of company's report and actual figures;... report cards
30 terms
Accounting ch 2-4
Journal
Trial balance
Debit
Chart of accounts
Record of transactions in date order
Summary of the ledger listing all of the accounts with their…
Left side of t account. Assets increase w/ a debit.
Used to organize a company's accounts
Journal
Record of transactions in date order
Trial balance
Summary of the ledger listing all of the accounts with their…
31 terms
Accounting 2 Chapter 4
Responsibility Accounting
Concept: Accounting Period Cycle
Direct Expense
Indirect Expense
Assigning control of business revenues, costs, and expenses a…
Changes in financial information are reported for a specific…
An operating expense identifiable with and chargeable to the…
An operating expense chargeable to overall business operation…
Responsibility Accounting
Assigning control of business revenues, costs, and expenses a…
Concept: Accounting Period Cycle
Changes in financial information are reported for a specific…
27 terms
Accounting 2 Chapter 4
Negotiable Instrument
Promissory note
principal
face value
a financial document that transfers ownership from one person…
written in promise to pay a certain amount of money on demand…
the amount of money owed or borrowed
the amount written on the "face" of the note (principle and t…
Negotiable Instrument
a financial document that transfers ownership from one person…
Promissory note
written in promise to pay a certain amount of money on demand…
21 terms
Accounting 2 chapter 4
Promissory note
Principal
Maturity date
Term
A(n) _____ is a written promise to pay a certain sum of money…
The _____ of a note is the amount being borrowed
The specific day on which the note must be paid is its _______
The _____ of the note is the length of time the borrower has…
Promissory note
A(n) _____ is a written promise to pay a certain sum of money…
Principal
The _____ of a note is the amount being borrowed
25 terms
Accounting 2 Chapter 4
Volume-based cost drivers
Predetermined Overhead Rate
Enterprise resource planning system (E…
Facility-level activities
any measure that varies in direct proportion to production or…
predetermined overhead rate= estimated total manufacturing ov…
an integrated management information system that cuts across…
activities that support the entire company
Volume-based cost drivers
any measure that varies in direct proportion to production or…
Predetermined Overhead Rate
predetermined overhead rate= estimated total manufacturing ov…
27 terms
Accounting 2 Chapter 4
Accrual Basis of Accounting
Accrued Revenue
Bank Discount
Conservatism Principle
An accounting method in which revenue is recognized when earn…
Revenue earned but not yet received and recorded.
The amount of interest deducted in advance when a promissory…
An accounting guideline that states that when reporting the f…
Accrual Basis of Accounting
An accounting method in which revenue is recognized when earn…
Accrued Revenue
Revenue earned but not yet received and recorded.
30 terms
accounting 2 chapter 4
cost distortion
plantwide overhead rate
reasons to use department overhead rates
department overhead rates
occurs when some products are over costed while other product…
any job produced in the plant, whether it be treadmills, elli…
use this system if different departments incur different amou…
establish one MOH rate for the machining department and anoth…
cost distortion
occurs when some products are over costed while other product…
plantwide overhead rate
any job produced in the plant, whether it be treadmills, elli…
18 terms
Accounting 2 chapter 4
Fiscal period
Responsibility accounting
Direct expense
Indirect Expense
The length of time for which a business summarizes and report…
Assigning control of business revenues, costs and expenses as…
An operating expense that can be identified to a specific ope…
An operating expense that is chargeable to the business as a…
Fiscal period
The length of time for which a business summarizes and report…
Responsibility accounting
Assigning control of business revenues, costs and expenses as…
18 terms
Accounting 2 chapter 4
Fiscal period
Responsibility accounting
Direct expense
Indirect Expense
The length of time for which a business summarizes and report…
Assigning control of business revenues, costs and expenses as…
An operating expense that can be identified to a specific ope…
An operating expense that is chargeable to the business as a…
Fiscal period
The length of time for which a business summarizes and report…
Responsibility accounting
Assigning control of business revenues, costs and expenses as…
Accounting 2 chapter 4
Fiscal period
Responsibility accounting
Direct expense
Indirect Expense
The length of time for which a business summarizes and report…
Assigning control of business revenues, costs and expenses as…
An operating expense that can be identified to a specific ope…
An operating expense that is chargeable to the business as a…
Fiscal period
The length of time for which a business summarizes and report…
Responsibility accounting
Assigning control of business revenues, costs and expenses as…
35 terms
Accounting 2 chapter 4
progressive or graduated tax
tax brackets
personal exemption
deductions
Type of tax that increases the percentage of the tax you must…
a range of incomes taxed at a given rate.
the process of freeing or state of being free from an obligat…
the action of deducting or subtracting something.
progressive or graduated tax
Type of tax that increases the percentage of the tax you must…
tax brackets
a range of incomes taxed at a given rate.
10 terms
Accounting 2 Chapter 4
When is process costing used?
Process costing assigns costs to speci…
Processing departments
Journal entry for transferring product…
The company produces many of a homogeneous product
departments
Any unit in an organization where materials, labor, and overh…
Dr. W.I.P. department B, Cr. W.I.P. department A
When is process costing used?
The company produces many of a homogeneous product
Process costing assigns costs to speci…
departments
40 terms
Accounting chapter 2-4
Accounts payable
Account receivable
Assets
Balance sheet
Must pay
Claims u collect
Property business owns
Formal report on business financial condition, assets= liabil…
Accounts payable
Must pay
Account receivable
Claims u collect
Accounting 2
Net Sales
Gross Profits = Revenue - Cost of Good…
Receivable Turnover
Average Collection Period
Sales Revenue - Credit Card Discounts - Sales Discounts - Sal…
Gross Profit Margin = Gross Profit/Net Sales
Net Sales/Average Net Accounting Receivables
365/Receivables Turnover
Net Sales
Sales Revenue - Credit Card Discounts - Sales Discounts - Sal…
Gross Profits = Revenue - Cost of Good…
Gross Profit Margin = Gross Profit/Net Sales
accounting 2 test 4
financial accounting
Financial statements according to GAAP…
External users that use financial acco…
Managerial accounting
information that is reported at fixed intervals (monthly, qua…
income statement, retained earnings statement, balance sheet,…
Shareholders, creditors, government agencies, and the general…
information is designed to meet specific needs of a company's…
financial accounting
information that is reported at fixed intervals (monthly, qua…
Financial statements according to GAAP…
income statement, retained earnings statement, balance sheet,…
24 terms
Accounting 2 Test 4
Wage
Salary
Commission
Total Earnings
The amount paid to an employee for every hour worked
A fixed annual sum of money divided among equal pay periods.
A method of paying an employee based on the amount of sales t…
The total amount paid by a business for an employee's work, e…
Wage
The amount paid to an employee for every hour worked
Salary
A fixed annual sum of money divided among equal pay periods.
35 terms
Accounting 2 - Quiz 4
Activity-based budgeting
Budget
Budgeted balance sheet
Budgeting
Budget system based on expected activities
Formal statement of future plans, usually expressed in moneta…
Accounting report that presents predicted amounts of company'…
Process of planning future business actions and expressing th…
Activity-based budgeting
Budget system based on expected activities
Budget
Formal statement of future plans, usually expressed in moneta…
19 terms
Unit 2 Accounting - 4. Balance Day Adjustments
accrual accounting
accrued expense
accumulated depreciation
balance day adjustment
determining profit by recognising revenues as earned when the…
an expense that has been incurred but not yet paid
the value of a noncurrent asset that has been consumed over i…
a change made to a revenue or expense on balance day to show…
accrual accounting
determining profit by recognising revenues as earned when the…
accrued expense
an expense that has been incurred but not yet paid
6 terms
Unit 4 Accounting - 2. Stock Valuation
cost of stock
unit cost
product cost
period cost
all costs incurred in order to bring stock into a condition a…
the cost price of each individual item/unit of stock
a cost incurred in order to bring stock into a condition and…
a cost incurred in order to bring stock into a condition and…
cost of stock
all costs incurred in order to bring stock into a condition a…
unit cost
the cost price of each individual item/unit of stock
11 terms
A2 Accounting Unit 4 Capital investment appraisal and social accounting
discounted cash flow
investment appraisal
net present value
payback
a technique in which future cash flows are adjusted to give t…
the evaluation of investment projects to determine whether th…
a method of investment appraisal that considers all the costs…
a method of investment appraisal that focuses on the amount o…
discounted cash flow
a technique in which future cash flows are adjusted to give t…
investment appraisal
the evaluation of investment projects to determine whether th…
63 terms
Accounting 2 Exam 4
Who is responsible for the budget and…
Which is not a benefit of budgeting?…
budgets can be prepared for any period…
Base budget goals on past _____... Begin…
management
c. it enables disciplinary action to be taken at every level…
one year... * long enough to minimize seasonal fluctuations, ... *…
-Past performance... -Several months before end of current year
Who is responsible for the budget and…
management
Which is not a benefit of budgeting?…
c. it enables disciplinary action to be taken at every level…
63 terms
Cost Accounting Chapters 2-4
cost
actual cost
budgeted cost
cost object
resource sacrificed or forgone to achieve a specific objective
cost incurred
predicted, forecasted cost
anything for which a cost measurement is desired (price on a…
cost
resource sacrificed or forgone to achieve a specific objective
actual cost
cost incurred
39 terms
Unit 4: Corporation Accounting (Acct. 2)
Additional Paid-In-Capital
Amortization
Articles Of Incorporation
Board Of Directors
Capital received from investors in exchange for stock
To write off a portion of a bond discount or premium over the…
An application to organize a business as a corporation made t…
A group of individual, elected by stockholders, who govern an…
Additional Paid-In-Capital
Capital received from investors in exchange for stock
Amortization
To write off a portion of a bond discount or premium over the…
29 terms
Accounting 2 Exam 4
Absorption Costing
Variable Costing
Business segment
Budget
the product costing method that assigns direct materials, dir…
the product costing method that assigns only variable manufac…
an identifiable part of the company for which financial infor…
a financial plan that managers use to coordinate a business's…
Absorption Costing
the product costing method that assigns direct materials, dir…
Variable Costing
the product costing method that assigns only variable manufac…
20 terms
Accounting 2
Corporation
Accounting equation
Service business
Merchandising business
A company owned by shareholders
Assets = Liabilities + OE
Sells services to people or businesses
Sells goods to people
Corporation
A company owned by shareholders
Accounting equation
Assets = Liabilities + OE
11 terms
LECTURE PACKET 2.4: ACCOUNTING
ACCOUNTING IS THE "LANGUAGE" OF BUSINESS
WHAT ACCOUNTANTS DO?
TYPES OF ACCOUNTANTS
THE PAST CONFLICT BETWEEN AUDITING AND…
BUT, ACCOUNTING IS NOT SCIENCE... • 2 + 2 = 4 always... • But when…
• Provide financial information to managers who run a busines…
• Auditing: make sure the company is doing what they said the…
• Prohibits accounting firms from doing consulting to the sam…
ACCOUNTING IS THE "LANGUAGE" OF BUSINESS
BUT, ACCOUNTING IS NOT SCIENCE... • 2 + 2 = 4 always... • But when…
WHAT ACCOUNTANTS DO?
• Provide financial information to managers who run a busines…
29 terms
accounting 2 test 4
absorption costing
activity bases (drivers)
Relevant range
variable costs
The cost of manufactured products consisting of direct materi…
Identifying the activities that cause the cost to change
Specifying the range of activity over which the changes in th…
are costs that vary in proportion to changes in the activity…
absorption costing
The cost of manufactured products consisting of direct materi…
activity bases (drivers)
Identifying the activities that cause the cost to change
26 terms
Accounting 2 test 4
Cost Behavior
Activity bases
relevant range
Variable Cost
the manner in which cost changes as related activity changes.
Activities that cause a change in cost
the range of activity over which the changes in the cost are…
cost that vary in proportion to changes in the activity base.
Cost Behavior
the manner in which cost changes as related activity changes.
Activity bases
Activities that cause a change in cost
43 terms
Accounting 2 Exam 4
Activity Cost Driver
Activity cost pool
Activity-based costing (ABC)
Balanced scorecard
causes cost of activity to go up or down
grouping of individual costs (usually by dept. or service cen…
allocates costs to users of O.H. by focusing on activities, u…
system of performance measures used to assess manager perform…
Activity Cost Driver
causes cost of activity to go up or down
Activity cost pool
grouping of individual costs (usually by dept. or service cen…
18 terms
Accounting Test 4 (2)
Bond Certificate
Bonds
Callable bonds
Capital Lease
a legal document that indicates the name of the issuer, the f…
a form of interest-bearing notes payable issued by corporatio…
bonds that the issuing company can redeem (buy back) at a sta…
A contractual agreement allowing on party (the lessee) to use…
Bond Certificate
a legal document that indicates the name of the issuer, the f…
Bonds
a form of interest-bearing notes payable issued by corporatio…
27 terms
Accounting 2, Test 4
Rate Variance
Efficiency Variance
Price Variance
Quantity Variance
AH (AR - SR)
SR (AH - SH)
AQ (AP - SP)
SP (AQ - SQ)
Rate Variance
AH (AR - SR)
Efficiency Variance
SR (AH - SH)
44 terms
accounting 2 test 4
Fixed cost per unit varies as the asso…
fixed cost remains unchanged in total…
A variable cost per unit is constant a…
Cost behavior is relevant to managemen…
true
true
true
true
Fixed cost per unit varies as the asso…
true
fixed cost remains unchanged in total…
true
15 terms
accounting 2 chapter 4
How are merchandise companies' financi…
What is the difference between perpetu…
How is cost of goods sold calculated u…
What costs are included in inventory?
These financial statements include Inventory on the Balance S…
The perpetual inventory system keeps the inventory up-to-date…
Beg Inventory... + Net Purchases... =Goods Available for Sale... - End…
Beginning Inventory, Purchases of inventory (at cost), less P…
How are merchandise companies' financi…
These financial statements include Inventory on the Balance S…
What is the difference between perpetu…
The perpetual inventory system keeps the inventory up-to-date…
8 terms
Accounting 4
Ledger
General Ledger
Account Number
File Maintenance
A group of accounts.
A ledger the contains all accounts needed to prepare financia…
The number assigned to an account.
The procedure for arranging accounts in a general ledger, ass…
Ledger
A group of accounts.
General Ledger
A ledger the contains all accounts needed to prepare financia…
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