Study sets matching "principles accounting"

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Study sets matching "principles accounting"

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…
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…
5 terms
Principles in Accounting
Professional Behaviour
Professional competence and due care
Confidentiality
Integrity
Comply with laws and regulations... Maintain a good reputation a…
Use sound judgement... Undertake CPD... the principle that is most…
Seek Professional Advice... Keep records secure... Be aware of inad…
Act Honestly... Ensure fair dealings... The quality of having stron…
Professional Behaviour
Comply with laws and regulations... Maintain a good reputation a…
Professional competence and due care
Use sound judgement... Undertake CPD... the principle that is most…
Accounting Principles
What does GAAP stand for?
Who developed the generally accepted a…
What does FASB stand for?
After what historical event did the co…
Generally Accepted Accounting Principles
FASB
Financial Accounting Standards Board
Stock Market Crash of 1929
What does GAAP stand for?
Generally Accepted Accounting Principles
Who developed the generally accepted a…
FASB
7 terms
Accounting Principles
Consistency Principle
Historical Cost Principle
Entity Principle
Reporting Period Principle
Accounting methods should be applied in a consistent manner t…
Transactions should be recorded at their original cost or val…
The business is separate from the owner and other businesses,…
The life of the business must be divided into 'periods' of ti…
Consistency Principle
Accounting methods should be applied in a consistent manner t…
Historical Cost Principle
Transactions should be recorded at their original cost or val…
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…
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…
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…
5 terms
Accounting Principles
Reporting Period
Going Concern
Entity
Historical Cost
Divided into periods of time
Life of the business is continuous
Owner and the business are separate
Original Purchase price
Reporting Period
Divided into periods of time
Going Concern
Life of the business is continuous
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…
Accounting Principles
Accounting entity assumption
Monetary assumption
Historical cost
Accounting period assumption
This assumption requires the owner of a business to keep his/…
This assumption requires that only items that can be expresse…
The original purchase price of an asset as recorded in the ba…
Requires the life of a business to be divided into equal time…
Accounting entity assumption
This assumption requires the owner of a business to keep his/…
Monetary assumption
This assumption requires that only items that can be expresse…
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…
accounting principles
liabilities
assets
capital
working capital
Amounts owed to creditors
Debit
An economic system based on private ownership of capital
Current Assets - Current Liabilities
liabilities
Amounts owed to creditors
assets
Debit
7 terms
Accounting Principles
Conservatism
Historical Cost
Entity
Reporting Period
...
...
...
...
Conservatism
...
Historical Cost
...
Accounting Principles
Monetary Unit
Reporting Period
Conservatism
Consistency
All items must be reported in a common unit of measurement -…
The life of the business must be divided into periods of time…
Losses should be recorded when probable but gains should only…
The same accounting method should be used from one accounting…
Monetary Unit
All items must be reported in a common unit of measurement -…
Reporting Period
The life of the business must be divided into periods of time…
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…
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…
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…
accounting principles
the entity principle
The going concern principle
the reporting principle
the historical cost principle
the business is separate from the owner and other entities
the assumption that the life of the business is continuous.
the life of a business must be divided into periods of time t…
all transactions must be recorded at their original cost so t…
the entity principle
the business is separate from the owner and other entities
The going concern principle
the assumption that the life of the business is continuous.
Accounting principles
Reporting period principle
Historical cost principle
Going concern principle
Entity principle
The life of the business must be divided into 'periods' of ti…
Transactions should be recorded at their original purchase pr…
The life of the business is assumed to be continuous, and its…
The business is separate from the owner and other entities, a…
Reporting period principle
The life of the business must be divided into 'periods' of ti…
Historical cost principle
Transactions should be recorded at their original purchase pr…
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…
7 terms
Accounting principles
Entity
Going concern
Reporting period
Historical cost
The business is assumed to be seperate from the owner and oth…
The life of the business is assumed to be continuous, and it'…
The life of the business must be divided into periods of time…
The recording of a transaction at its origin cost or value, a…
Entity
The business is assumed to be seperate from the owner and oth…
Going concern
The life of the business is assumed to be continuous, and it'…
Accounting Principles
Entity
Going Concern
Reporting Period
Historical Cost
The business is assumed to be separate from the owner and oth…
The life of the business is assumed to be continuous, and its…
The life of the business must be divided into periods of time…
The recording of a transaction at its original cost or value,…
Entity
The business is assumed to be separate from the owner and oth…
Going Concern
The life of the business is assumed to be continuous, and its…
7 terms
Accounting principles
Monetary unit
Reporting period
Consistency
Conservative
All items must be recorded and reported in the currency of th…
The life of a business is divided into periods of time. Recor…
A business should use the same accounting methods to allow fo…
Losses should be recorded when probable, but gains only recor…
Monetary unit
All items must be recorded and reported in the currency of th…
Reporting period
The life of a business is divided into periods of time. Recor…
Accounting principles
Business entity concept
Cost principle
Continuing concern
Matching principle
Keeps the accounting for a business organization separate fro…
Value of assets must be recorded at the historical cost
Assumes a business will continue to operate and assets will b…
Each expense item related to revenue earned must be recorded…
Business entity concept
Keeps the accounting for a business organization separate fro…
Cost principle
Value of assets must be recorded at the historical cost
Accounting Principles
Monetary Unit
reporting period
consistency
going concern
Monetary Unit ... All items must be recorded and reported in the…
Reporting Period... The life of a business must be divided into…
Consistency ... The business should use the same accounting meth…
Going Concern... The life of a business is assumed to be continu…
Monetary Unit
Monetary Unit ... All items must be recorded and reported in the…
reporting period
Reporting Period... The life of a business must be divided into…
7 terms
Accounting Principles
Entity principle
Going concern principle
Reporting period principle
Historical cost principle
The buisness is seprate from the owner and should be recorded…
The life of the business is assumed to be continued and shoul…
The life of the business must be divided into periods of time…
Transactions should be recorded at there original purchase pr…
Entity principle
The buisness is seprate from the owner and should be recorded…
Going concern principle
The life of the business is assumed to be continued and shoul…
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…
Accounting principles
Entity princliple
going concern
reporting period
consistency
the business is seperate from the owner and other entities, a…
The life of the business i assumed to be continous, and its r…
The life of the business must be divided into periods of time…
The business should use the same accounting methods to allow…
Entity princliple
the business is seperate from the owner and other entities, a…
going concern
The life of the business i assumed to be continous, and its r…
Accounting principles
historical cost
Entity
Reporting period
Monetary unit
the recording of a transaction at its original cost or value,…
The business is assumed to e separate from the owner and othe…
the life of a business must be divided into periods of time t…
all items but be recorded and reported in a common unit of me…
historical cost
the recording of a transaction at its original cost or value,…
Entity
The business is assumed to e separate from the owner and othe…
7 terms
Accounting principles
Entity
Going concern
Reporting period
Historical cost
The business is assumed to be separate from the owner and oth…
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…
The recording of a transaction at its original cost or value,…
Entity
The business is assumed to be separate from the owner and oth…
Going concern
The life of the business is assumed to be continuous and it's…
Accounting Principles
Entity
Monetary Unit
Reporting Period
Going Concern
The business is assumed to be separate from the owner and oth…
All items must be recorded and reported in monetary terms, th…
The life of the business must be divided into 'periods' of ti…
The life of the business is assumed to be continuous and its…
Entity
The business is assumed to be separate from the owner and oth…
Monetary Unit
All items must be recorded and reported in monetary terms, th…
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.
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…
Accounting Principles
Monetary Unit
Consistency
Conservatism
Entity
All items must be recorded and reported in the currency of th…
Accounting methods should be applied in a consistent manner t…
Losses should be recorded when probable, but gains only when…
The business is assumed to be separate from the owner and oth…
Monetary Unit
All items must be recorded and reported in the currency of th…
Consistency
Accounting methods should be applied in a consistent manner t…
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…
7 terms
Accounting Principles.
Historical cost
Entity
Reporting period
Monetary unit
the recording of a transaction as its original cost, as the v…
the business is assumed to be separate from the owner and oth…
the life of the business must be divided into periods of time…
all items must be recorded and reported in a common unit of m…
Historical cost
the recording of a transaction as its original cost, as the v…
Entity
the business is assumed to be separate from the owner and oth…
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…
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
Accounting Principles
monetary unit
consistency
conservatism
reporting period
All items must be recorded and reported in the currency of th…
Accounting methods should be applied in a consistent manner t…
Losses should be recorded when probable, but gains only when…
The life of the business must be divided into periods of time…
monetary unit
All items must be recorded and reported in the currency of th…
consistency
Accounting methods should be applied in a consistent manner t…
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…
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…
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…
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…
18 terms
Accounting Principles
What are Assets
Current Assets
Long Term investments (Assets)
Property, Plant, & Equipment (Assets)
Resources
Cash, Marketable securities, Accounts Receivable, Inventory,…
Stock Investments (Equity), Debt Investments (Bonds)
Land, Building, Equipment, Furniture, fixture
What are Assets
Resources
Current Assets
Cash, Marketable securities, Accounts Receivable, Inventory,…
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…
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…
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