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Study sets matching "accounting principles"

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Study sets matching "accounting principles"

8 terms
Accounting Principles
Monetary Unit
Entity
Going Concern
Reporting Period
To understand the meaning of reported information, it is nece…
Principle states that the business' transactions is kept sepa…
Assumes that the life of the business is continuous and never…
The life of the business must be divided into periods of time…
Monetary Unit
To understand the meaning of reported information, it is nece…
Entity
Principle states that the business' transactions is kept sepa…
11 terms
accounting principles
economic entity assumption
going concern assumption
monetary unit assumption
periodicity assumption
keep the sole proprietor's business transactions separate fro…
accountants believe that the company will not liquidate in th…
in the long run, the dollar is stable—it does not lose its pu…
allows the accountant to divide up the complex, ongoing activ…
economic entity assumption
keep the sole proprietor's business transactions separate fro…
going concern assumption
accountants believe that the company will not liquidate in th…
7 terms
Accounting Principles
Monetary Unit
Conservatism
Consistency
Historical Cost
All items must be recorded and reported in the currency of yo…
Losses should be recorded when probable but gains should only…
Accounting methods should be applied the same each period to…
We record items and transactions at their original value (cos…
Monetary Unit
All items must be recorded and reported in the currency of yo…
Conservatism
Losses should be recorded when probable but gains should only…
10 terms
Accounting Principles
Money Measurement
Entity
Going Concern
Cost
Accounting records only show facts that can be expressed in m…
Accounts are kept for business entities as distinguished from…
Accounting assumes that a business will continue indefinitely.
Assets are entered in the accounting records at the amount pa…
Money Measurement
Accounting records only show facts that can be expressed in m…
Entity
Accounts are kept for business entities as distinguished from…
40 terms
Principles of accounting
Account
Accrued Liability
Chart of Accounts
Compound Journal Entry
The detailed record of all the changes that have occurred in…
A liability for which the business knows the amount owed but…
A list of all a company's accounts with their account numbers.
Same as a journal entry, except this entry is characterized b…
Account
The detailed record of all the changes that have occurred in…
Accrued Liability
A liability for which the business knows the amount owed but…
Accounting Principles
The separate entity principle
The historical cost principle
The revenue/realization principle
The continuity principle
An enterprise is an accounting unit separate from it's owners…
The initial price paid for the acquisition of assets is the o…
Revenue is realized at the moment when goods are sold or when…
The business will continue indefinitely into the future
The separate entity principle
An enterprise is an accounting unit separate from it's owners…
The historical cost principle
The initial price paid for the acquisition of assets is the o…
94 terms
Principles of Accounting Chapter 2
Account
T Account
Debit (Dr.)
Credit (Cr.)
is an individual accounting record of increases and decreases…
In its simplest form, an account consists of three parts: (1)…
Left
Right
Account
is an individual accounting record of increases and decreases…
T Account
In its simplest form, an account consists of three parts: (1)…
Principles of Accounting Chapter 6
Average-cost method
Consigned goods
Consistency concept
Current replacement cost
Inventory costing method that uses the weighted-average unit…
Goods held for sale by one party although ownership of the go…
Dictates that a company use the same accounting principles an…
The current cost to replace an inventory item.
Average-cost method
Inventory costing method that uses the weighted-average unit…
Consigned goods
Goods held for sale by one party although ownership of the go…
6 terms
Accounting Principles
Relavance
Faithful Representation
Comparability
Verifiability
refers to whether information is capable of making a differen…
refers to whether information faithfully represents the econo…
allows external users to identify similarities and difference…
Results when independent parties can reach a consensus on the…
Relavance
refers to whether information is capable of making a differen…
Faithful Representation
refers to whether information faithfully represents the econo…
6 terms
accounting principles
entity principle
going concern principle
reporting period principle
historical cost principle
the business is separate from the owner and other entities, a…
the life of the business is assumed to be continuous, and its…
The life of the business must be divided into 'periods' of ti…
An accounting principle that states that companies should rec…
entity principle
the business is separate from the owner and other entities, a…
going concern principle
the life of the business is assumed to be continuous, and its…
ACCOUNTING PRINCIPLES
Entity
reporting period
conservatism
historical cost
the business must be a separate accounting entity from its ow…
the ongoing life of a business if broken into regular interva…
it is acknowledged that gains will not be recognised until ea…
all transactions are recorded at their original value. Theref…
Entity
the business must be a separate accounting entity from its ow…
reporting period
the ongoing life of a business if broken into regular interva…
8 terms
Accounting Principles
historical cost principle
Expense Recognition principle
Revenue recognition priniciple
Full Disclosure
When recording financial transactions, the resources exchange…
expenses should be recognized in the same period as the reven…
The exchange of merchandise or service for economic resources…
Any future event that the firm is aware of potentially occurr…
historical cost principle
When recording financial transactions, the resources exchange…
Expense Recognition principle
expenses should be recognized in the same period as the reven…
7 terms
Accounting principles
entity
going concern
reporting period
historical cost
the business is separate from the owner and its records shoul…
the life of the business is assumed to be continuous, and its…
the life of the business must be divided into periods of time
transactions should be recorded at their original purchase pr…
entity
the business is separate from the owner and its records shoul…
going concern
the life of the business is assumed to be continuous, and its…
Principles of Accounting Chapter 1
Accounting
Assets
Balance sheet
Basic accounting equation
The information system that identifies, records, and communic…
Resources a business owns.
A financial statement that reports the assets, liabilities, a…
Assets = Liabilities + Owner's Equity
Accounting
The information system that identifies, records, and communic…
Assets
Resources a business owns.
10 terms
Accounting principles
Business entity
Duality
Money measurement
Realisation
Business is treated completely seperate from the owner of the…
Every transaction has two aspects - a giving and a receiving
Only information which can be expressed in terms of money can…
Profit is only regarded as being earned when the legal title…
Business entity
Business is treated completely seperate from the owner of the…
Duality
Every transaction has two aspects - a giving and a receiving
7 terms
Accounting Principles
Consistency:
Going concern:
Monetary unit:
Conservatism:
-Accounting methods should be kept the same from one period t…
-Going concern mans you assume the business will keep going f…
-All items must be recorded and reported is currently of loca…
-Losses should be recorded when probable but gains recorded w…
Consistency:
-Accounting methods should be kept the same from one period t…
Going concern:
-Going concern mans you assume the business will keep going f…
7 terms
Accounting principles
Entity principle
Going concern principle
Reporting period principle
Historical concept principle
The business is separate from the owner and other entities, a…
The life of the business is assumed to be continuous, and its…
The life of the business must be divided into periods of time…
Transaction should be recorded at their original price as thi…
Entity principle
The business is separate from the owner and other entities, a…
Going concern principle
The life of the business is assumed to be continuous, and its…
12 terms
Accounting principles
Matching Principle
Accounting Period Cycle
Consistent Reporting
Going Concern
requires that expenses incurred by an organization must be ch…
The name given to the collective process of recording and pro…
An accounting concept which requires all accounting items to…
The idea that a company will continue to operate indefinitely…
Matching Principle
requires that expenses incurred by an organization must be ch…
Accounting Period Cycle
The name given to the collective process of recording and pro…
8 terms
Accounting Principles
H.E.R M.C.C.G
Historical cost
Entity
Reporting Period
Historical Cost... Entity... Reporting Period... Monetary Period... Conse…
The recording of a transaction at it's original cost, as this…
The business is assumed to be separate from the owner and oth…
The life of the business must be divided into periods of time…
H.E.R M.C.C.G
Historical Cost... Entity... Reporting Period... Monetary Period... Conse…
Historical cost
The recording of a transaction at it's original cost, as this…
29 terms
Accounting Principles
Accounting equation
Accounts receivable
Accounts payable
Asset
refers to the relationship between assets, liabilities, and o…
refers to the asset created when a company sells services or…
refers to the obligation to pay cash to suppliers in the future
refers to the resources owned or controlled by a business tha…
Accounting equation
refers to the relationship between assets, liabilities, and o…
Accounts receivable
refers to the asset created when a company sells services or…
22 terms
Principles of Accounting Chapter 3
Accrual-basis accounting
Accruals
Accrued expenses
Accrued revenues
Accounting basis in which companies record transactions that…
Adjusting entries for either accrued revenues or accrued expe…
Expenses incurred but not yet paid in cash or recorded.
Revenues for services performed but not yet received in cash…
Accrual-basis accounting
Accounting basis in which companies record transactions that…
Accruals
Adjusting entries for either accrued revenues or accrued expe…
19 terms
Accounting Principles
Monetary Convention
Monetary Limitations
Entity
Accounting Entity
Assumes all transactions are recorded in monetary terms and i…
The value of money may change over time, certain transactions…
The business is separate from the owner
Keeps accounting records
Monetary Convention
Assumes all transactions are recorded in monetary terms and i…
Monetary Limitations
The value of money may change over time, certain transactions…
22 terms
Accounting Principles
To be included on an Income Statement,…
4 main sections of the Income Statement:
True/False: All items on the IS must b…
True/False: All items on IS must be ca…
Correspond to the time period shown and affect the company's…
Revenue and COGS, operating expenses, other income and expens…
False
False
To be included on an Income Statement,…
Correspond to the time period shown and affect the company's…
4 main sections of the Income Statement:
Revenue and COGS, operating expenses, other income and expens…
ACCOUNTING PRINCIPLES
Entity Principle
Going Concern Principle
Reporting Period Principle
Historical Cost Principle
the buisness is seperate from the owner and other entries, an…
the life of the buisness is assumed to be continuous, and its…
the life of the buisness must be divided into 'periods' of ti…
transactions should be recorded at their original purchase pr…
Entity Principle
the buisness is seperate from the owner and other entries, an…
Going Concern Principle
the life of the buisness is assumed to be continuous, and its…
7 terms
Accounting principles
Entity principle
Going concern principle
Reporting period principle
Historical cost
The business is separate from the owner and other entities, a…
The life of the business is assumed to be continuous and it's…
The life of the business must be divided into periods of time…
Transactions should be recorded at their original purchase pr…
Entity principle
The business is separate from the owner and other entities, a…
Going concern principle
The life of the business is assumed to be continuous and it's…
10 terms
Accounting Principles
Economic Entity Assumption
Monetary Unit Assumption
Time Period Assumption
Cost Principle
The accountant keeps all of the business transactions of a so…
Economic activity is measured in U.S. dollars, and only trans…
This accounting principle assumes that it is possible to repo…
From an accountant's point of view, the term "cost" refers to…
Economic Entity Assumption
The accountant keeps all of the business transactions of a so…
Monetary Unit Assumption
Economic activity is measured in U.S. dollars, and only trans…
Principles of Accounting Chapter 15
Bond certificate
Bond indenture
Bonds
Callable bonds
A legal document that indicates the name of the issuer, the f…
A legal document that sets forth the terms of the bond issue.
A form of interest-bearing notes payable issued by corporatio…
Bonds that are subject to redemption (buy back) at a stated d…
Bond certificate
A legal document that indicates the name of the issuer, the f…
Bond indenture
A legal document that sets forth the terms of the bond issue.
12 terms
Accounting principles
Economic Entity Assumption
Monetary Unity Assumption
Full Disclosure Principle
Cost principle
The accountant keeps all of the business transactions of a so…
Economic activity is measured in U.S. dollars, and only trans…
If certain information is important to an investor or lender…
Accounting principle:... "cost" refers to the amount spent when…
Economic Entity Assumption
The accountant keeps all of the business transactions of a so…
Monetary Unity Assumption
Economic activity is measured in U.S. dollars, and only trans…
10 terms
Accounting principles
GAAP
IFRS
Historical cost pr
Revenue pr
Generally accepted acc principles of recording debits and cre…
International financial reporting standards
Acc record the initial price paid for assets, which doesn't c…
Rev is realized at the moment when goods are sold (not when p…
GAAP
Generally accepted acc principles of recording debits and cre…
IFRS
International financial reporting standards
7 terms
Accounting Principles
Reporting Period
Monetary Unit
Historical Cost
Entity
the life of the business must be divided into periods of time…
all units must be recorded and reported in a common unit of m…
the recording of a transaction at its original cost or value,…
the business is assumed to be separate from the owner and oth…
Reporting Period
the life of the business must be divided into periods of time…
Monetary Unit
all units must be recorded and reported in a common unit of m…
8 terms
Accounting Principles
Accounting principles
Conservatism principles
Historical cost principles
Enitity
The generally accepted rules which govern the way accounting…
Lossess should be record recorded when probable, but gains on…
Transactions should be recorded at their original purchase pr…
The business is serparate from the owner and other enities, a…
Accounting principles
The generally accepted rules which govern the way accounting…
Conservatism principles
Lossess should be record recorded when probable, but gains on…
11 terms
Accounting Principles
Business entity
Duality
Consistency
Realisation
The business is treated as separate from the owner
Transactions have 2 aspects: a giving and a receiving
The same accounting method should be used for each period
Profit is only regarded as being made when the legal title of…
Business entity
The business is treated as separate from the owner
Duality
Transactions have 2 aspects: a giving and a receiving
21 terms
Academic Words for Principles of Managerial Accounting
Managerial Accounting
Cost
Decisions making
Direct costs
المحاسبة الادارية
تكلفة/ تكاليف
اتخاذ القرارات
التكاليف المباشرة
Managerial Accounting
المحاسبة الادارية
Cost
تكلفة/ تكاليف
7 terms
Accounting Principles
Entity principle
Going Concern principle
Reporting Period principle
Historical Cost principle
the business is separate from the owner and other entities, a…
the life of the business is assumed to be continuous, and its…
the life of the business must be broken up into regular inter…
transaction should be recorded at their original purchase pri…
Entity principle
the business is separate from the owner and other entities, a…
Going Concern principle
the life of the business is assumed to be continuous, and its…
12 terms
Accounting Principles
Matching
Reporting period
Consistency
Going Concern
Requires that all revenues earned must be matched with the co…
Covers the period over which transactions are summarized and…
Same rules for all companies for all accounting periods.
Ability to remain in business for the forseeable future witho…
Matching
Requires that all revenues earned must be matched with the co…
Reporting period
Covers the period over which transactions are summarized and…
8 terms
Accounting Principles
Business Entity
Accounting Period
Going Concern
Consistency
Financial information is recorded and reported separately fro…
all financial statements are for the same specific time
The assumption that the company has the ability to survive an…
requires a business to apply the same accounting methods each…
Business Entity
Financial information is recorded and reported separately fro…
Accounting Period
all financial statements are for the same specific time
7 terms
Principles of Accounting
Entity
Going concern
Reporting period
Historical cost
the business is assumed to be separated from the owner AND ot…
the life of the business is assumed to be continuous, and its…
the life of the business must be divided into periods of time…
transactions should be recorded at their original cost or val…
Entity
the business is assumed to be separated from the owner AND ot…
Going concern
the life of the business is assumed to be continuous, and its…
Accounting Principles
General guidelines.
The __________ unit assumption means t…
Adjusting entries help to achieve the…
The cost principle is often described…
Principles
Monetary
Matching
Historical
General guidelines.
Principles
The __________ unit assumption means t…
Monetary
15 terms
Principles of Accounting
What are the rules of accounting called?
Accounting Equation
Who are the "rule makers" of accounting?
What are the 4 parts of owners equity?
Generally Accepted Accounting Principles (GAAP)
Assets = Liability + Owners Equity
Financial Accounting Standards Board (FASB)
+Capital, +Revenue, -Expenses, -Drawing
What are the rules of accounting called?
Generally Accepted Accounting Principles (GAAP)
Accounting Equation
Assets = Liability + Owners Equity
55 terms
Principles of Accounting
Accounting
Accounting equation
assets
audit
information and measurement system that identifies, records,…
equality involving a company's assets, liabilities, and equit…
resources a business owns or controls that are expected to pr…
analysis and report of an organization's accounting system, i…
Accounting
information and measurement system that identifies, records,…
Accounting equation
equality involving a company's assets, liabilities, and equit…
12 terms
Accounting Concepts and Principles
Comparability
Conservatism
Consistency
Entity
Accounting information should be prepared in a consistent man…
Being on the safe side; cautious. Account for losses when the…
Apply consistent accounting methods from one period to the next
Keep the transactions of the business separate from the perso…
Comparability
Accounting information should be prepared in a consistent man…
Conservatism
Being on the safe side; cautious. Account for losses when the…
9 terms
Accounting Principles
Entity
Going Concern
Reporting Period
Historical Cost
The business is separate from the owner and other entities an…
The life of the business is assumed to be continuous and its…
The life of the business must be divided into periods of time…
Transactions should be recorded at their original purchase pr…
Entity
The business is separate from the owner and other entities an…
Going Concern
The life of the business is assumed to be continuous and its…
Principles of Accounting Chapter 5
Contra revenue account
Cost of goods sold
FOB destination
FOB shipping point
An account that is offset against a revenue account on the in…
The total cost of merchandise sold during the period.
Freight terms indicating that the seller places the goods fre…
Freight terms indicating that the seller places goods free on…
Contra revenue account
An account that is offset against a revenue account on the in…
Cost of goods sold
The total cost of merchandise sold during the period.
8 terms
Accounting principles
CHER @ MCG
conservatism
historical cost
entity
Conservitism, historical cost, entity, reporting period, mone…
losses should be recorded when probable, but gains are onlyy…
transactions should be recoreded at their original price, as…
the business is seperate from the owner and other entities an…
CHER @ MCG
Conservitism, historical cost, entity, reporting period, mone…
conservatism
losses should be recorded when probable, but gains are onlyy…
Principles of Accounting Chapter 4
Classified balance sheet
Closing entries
Correcting entries
Current assets
A balance sheet that contains standard classifications or sec…
Entries made at the end of an accounting period to transfer t…
Entries to correct errors made in recording transactions.
Assets that a company expects to convert to cash or use up wi…
Classified balance sheet
A balance sheet that contains standard classifications or sec…
Closing entries
Entries made at the end of an accounting period to transfer t…
163 terms
Principles of Accounting
Accounting
Accounting System
Auditing
Auditor's report
The process by which financial information about a business i…
A process designed to accumulate, classify, and summarize fin…
The review of financial statements to assess their fairness a…
auditor's reportAn independent accountant's review of a firm'…
Accounting
The process by which financial information about a business i…
Accounting System
A process designed to accumulate, classify, and summarize fin…
Principles of Accounting Chapter 3
Accrual-basis accounting
Accruals
Accrued expenses
Accrued revenues
Accounting basis in which companies record transactions that…
Adjusting entries for either accrued revenues or accrued expe…
Expenses incurred but not yet paid in cash or recorded.
Revenues for services performed but not yet received in cash…
Accrual-basis accounting
Accounting basis in which companies record transactions that…
Accruals
Adjusting entries for either accrued revenues or accrued expe…
36 terms
Principles of Accounting
Accounting
assets
balance sheet
capital
the process of identifying, measuring, recording and communic…
accounts receivable, cash, inventory, land, buildings, equipm…
a financial statement that reports the sources (assets) owned…
a company's assets less its liabilities. aka stockholder's eq…
Accounting
the process of identifying, measuring, recording and communic…
assets
accounts receivable, cash, inventory, land, buildings, equipm…
Principles of Accounting Chapter 19
Activity-based costing (ABC)
Balanced scorecard
Board of directors
Chief executive officer (CEO)
A method of allocating overhead based on each product's use o…
A performance-measurement approach that uses both financial a…
The group of officials elected by the stockholders of a corpo…
Corporate officer who has overall responsibility for managing…
Activity-based costing (ABC)
A method of allocating overhead based on each product's use o…
Balanced scorecard
A performance-measurement approach that uses both financial a…
8 terms
ACCOUNTING PRINCIPLES - ACCOUNTING
Accounting principles
Entity Principle
Going Concern Principle
Reporting Period Principle
the generally accepted rules which govern the way accounting…
the business is seperate from the owner and other entities, a…
the life of the business is assumed to be continuous, and its…
the life of the business must be divided into 'periods' of ti…
Accounting principles
the generally accepted rules which govern the way accounting…
Entity Principle
the business is seperate from the owner and other entities, a…
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