Unit 1 Accounting and Business Analytics Exam Prep

Conceptual and formula-based vocabulary flashcards for accounting, business analytics, and auditing based on the Unit 1 lecture notes.

Accounting Equation

$$Assets = Liabilities + Equity$$

Equity

$$Assets - Liabilities$$

Liabilities

$$Assets - Equity$$

Net Income

$$Revenue - Expenses$$

Gross Profit

$$Revenue - COGS$$

COGS

$$Beginning Inventory + Purchases - Ending Inventory$$

Ending RE

$$Beginning RE + Net Income - Dividends$$

ROA

$$\frac{Net Income}{Average Assets}$$

ROE

$$\frac{Net Income}{Average Equity}$$

Asset Turnover

$$\frac{Sales}{Average Assets}$$

Owner Financing

$$\frac{Equity}{Assets}$$

Nonowner Financing

$$\frac{Liabilities}{Assets}$$

Porter's Five Forces

Buyers, Suppliers, Rivalry, Substitutes, New Entrants

GAAP

Generally Accepted Accounting Principles

Descriptive Analytics

What happened?

Predictive Analytics

What will happen?

Clean Audit Opinion

Financial statements fairly presented

Adverse Opinion

Material problems identified

Income Statement

Financial statement that reports profitability, including Revenue, Expenses, and Net Income

Retained Earnings

Accumulated earnings kept in the business

Median

Middle value

Mode

Most frequent value

Range

$$Highest - Lowest$$

Standard Deviation

Spread of data

Balance Sheet

A financial statement reporting Assets, Liabilities, and Equity

Cash Flow Statement

A financial statement reporting Operating, Investing, and Financing cash flows