Financial accounting HBX Core ( module 1-4)
1. A principle that impacts the desicion making of those who are using finan-
cial data: Materiality
2. What increases with debit?: Expenses and assets
3. Liability that represent that you should provide a service when you have
already received the money: Deferred revenue
4. Simplified version of ledger accounts: T-accounts
5. Increases prepared insurance (asset) and decreases cash: Prepared insur-
ance
6. Asset that represents the right to receive goods and services: Prepaid ex-
pense
7. PP&E, Investment belong to...: Asset
8. Accounts receivable, other receivables, prepaid expenses, and cash: Cur-
rent assets
9. Equipment, net, software: Non-current assets
10. Accounts payable and accused expenses: Current liabilities
11. Notes payable: Non-current liabilities
12. Capital stock, retained earnings: Owners equity
13. Operating income + interest income: Income before taxes
14. Gross profit- salaries-building expenses- other operating expenses: Oper-
ating income
15. Net Sales - Cost of Sales- all operating and admin expenses- a interest- tax
expense: Net income
16. Revenue - Gross Profit: COGS
17. COGS, rent expense, sales: Temporary Nominal accounts ( in the end of the
year transferred to retained earnings)
18. Assets, liabilities, equity, PP&E, common stock, inventory: Real accounts
19. The most liquid ( those which can be easily converted to cash) goes
first: US GAAP
20. Tells the financial history of the period: Income statement
21. Company's book value: Balance sheet
22. Cash activities: Statement of cash flows
23. Triggered with specific event, exchange of resources between two parties.
Invoices, receipts, cash: Explicit transactions
24. Involve some degree of judgement in determining the timing and amount
of journal entries. Accrual accounting. ( recognizing expenses, revenues,
under-recorded stuff): Implicit transactions
25. The original cost - accumulated depreciation: Net book value of asset
26. Taxable income is less than income before taxes: Deferred tax liability
27. Operating income+ operating expenses: Gross profut
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1. A principle that impacts the desicion making of those who are using finan-
cial data: Materiality
2. What increases with debit?: Expenses and assets
3. Liability that represent that you should provide a service when you have
already received the money: Deferred revenue
4. Simplified version of ledger accounts: T-accounts
5. Increases prepared insurance (asset) and decreases cash: Prepared insur-
ance
6. Asset that represents the right to receive goods and services: Prepaid ex-
pense
7. PP&E, Investment belong to...: Asset
8. Accounts receivable, other receivables, prepaid expenses, and cash: Cur-
rent assets
9. Equipment, net, software: Non-current assets
10. Accounts payable and accused expenses: Current liabilities
11. Notes payable: Non-current liabilities
12. Capital stock, retained earnings: Owners equity
13. Operating income + interest income: Income before taxes
14. Gross profit- salaries-building expenses- other operating expenses: Oper-
ating income
15. Net Sales - Cost of Sales- all operating and admin expenses- a interest- tax
expense: Net income
16. Revenue - Gross Profit: COGS
17. COGS, rent expense, sales: Temporary Nominal accounts ( in the end of the
year transferred to retained earnings)
18. Assets, liabilities, equity, PP&E, common stock, inventory: Real accounts
19. The most liquid ( those which can be easily converted to cash) goes
first: US GAAP
20. Tells the financial history of the period: Income statement
21. Company's book value: Balance sheet
22. Cash activities: Statement of cash flows
23. Triggered with specific event, exchange of resources between two parties.
Invoices, receipts, cash: Explicit transactions
24. Involve some degree of judgement in determining the timing and amount
of journal entries. Accrual accounting. ( recognizing expenses, revenues,
under-recorded stuff): Implicit transactions
25. The original cost - accumulated depreciation: Net book value of asset
26. Taxable income is less than income before taxes: Deferred tax liability
27. Operating income+ operating expenses: Gross profut
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