Financial Accounting Cheat Sheet

AICPA	American Institute of Certified Public Accountants
APB	Accounting Principles Board
CAP	Committee on Accounting Procedure
EITF	Emerging Issues Task Force
FAF	Financial accounting foundation
	To select members of the FASB and their Advisory Councils, fund their activities, and exercise general oversight.
FASAC	Financial Accounting Standards Advisory Council
	To consult on major policy issues, technical issues, project priorities, and selection and organization of task forces.
FASB	Financial Accounting Standards Board
	To establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.
IASB	International Accounting Standards Board
PCAOB	Public Company Accounting Oversight Board
SEC	Securities and Exchange Commission
	requires public companies to adhere to GAAP

Codification (aka ASC)	Financial Accounting Standards Board Accounting Standards Codification
ASC	Accounting Standards Codification
CRS	Financial Accounting Standards Board Accounting Standards Codification Research System
GAAP	Generally Accepted Accounting Principles

Big 4
Balance Sheet
Income Statement
Basic components	+ Revenues
	- Expenses
	= Net income
Statement of Cash Flows
	Operating activities
	Investing activities
	Financing activities
	Net increase or decrease
	Beginning Cash Balance
	Ending Cash Balance
Statement of Stockholders’ Equity
	Balance at the beginning of the period
	Additions
	Deductions
	Balance at the end of the period

General Ledger	list of all accounts
Subsidiary Ledger	has the details related to a given general ledger account
General Journal	a chronological record of all JE's
Trial Balance	a list of accounts and their balances at a given time
Adjusted Trial Balance	used to prepare the Income Statement, Retained earnings statement, and the balance sheet
Closing Entries	Transfers all income statement accounts to Retained Earnings via the Income Summary account
	Balance sheet accounts (asset, liability and equity) are permanent and are not closed
	Dividends are closed directly to the Retained Earnings

Comprehensive income ?
other comprehensive income?

DEA/LOR
DEBIT / CREDIT
DEA:	Dividends, Expenses, and Assets
LOR:	Liabilities, (owners') Equity, and Revenue
DEAD = Debits (increase) Expenses, Assets, and Dividends
Asset accounts (DR)
	Cash
	AR - Accounts receivable
	PPE - Property, Plant, Equipment
	Accumulated deprecation
	Pre-paid accounts
Liabilities accounts (CR)
	Notes payable
	(any payable account)
	Unearned service revenue (contra asset account)
SHE
	Cr. Common stock
	Cr. Retained earnings
	Dr. Dividends
	Dr. Salaries expense
	Cr. Service revenue

Basic Acct Equation
Assets (Dr.) =
	+ Liabilities (Cr.)
	+ SHE (mixed)
SHE (mixed) =
	+ CS (Common Stock) (Cr.)
	+ RE (retained earnings) (Cr.)
	+ revenues (Cr.)
	- expenses (Dr.)
	- dividends (Dr.)
4 adjustments to owners' equity
WIRE (- ++ -)
	-Withdraws
	+Investments
	+Revenue
	-Expenses

Measurement Principle
Historic Cost	accounting/reporting on the basis of acquisition price
	*verifiable benchmark
Fair Value	the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
	*market-based measure
	**more useful
Revenue Recognition Principle
	When the company satisfies this performance obligation
Expense Recognition Principle
	when the work (service) or the product actually contributes to revenue
	by matching efforts (expenses) with accomplishment (revenues), the expense recognition principle is implemented
product costs	material, labor, and overhead, attach to the product
period costs	such as offi cers’ salaries and other administrative expenses, attach to the period
Full Disclosure Principle
	1. sufficient detail to disclose matters that make a difference to users
	2. sufficient condensation to make the information understandable
3 places	(1) within the main body of financial statements
	(2) in the notes to those statements
	(3) as supplementary information

making sure the company presents enough information to ensure that the reasonably prudent investor will not be misled

Financial Accounting Cheat Sheet (DRAFT) by nova-cane98