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Study sets matching "principles fundamental accounting"

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Study sets matching "principles fundamental accounting"

59 terms
Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
59 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
48 terms
Fundamental Accounting Principles
accounting
bookkeeping
external users
financial accounting
Information and measurement system that identifies, records,…
the recording of transactions and events, either manually or…
Persons using accounting information who are not directly inv…
focuses on reporting information to external users
accounting
Information and measurement system that identifies, records,…
bookkeeping
the recording of transactions and events, either manually or…
27 terms
Fundamental Accounting Principles
Accounting - Definition
Recording - Definition
Communicating - Definition
Record keeping or Bookkeeping - Defini…
An information and measurement system that identifies. record…
Recording business activities requires that we keep a chronol…
Communicating business activities requires that we prepare ac…
is the recording of transactions and events, either manually…
Accounting - Definition
An information and measurement system that identifies. record…
Recording - Definition
Recording business activities requires that we keep a chronol…
24 terms
Fundamental Accounting Principles
Requirements to become a CPA
Characteristics of a corporation
Who currently establishes GAAP
Revenue recognition principles (2)
150 credit hours, Pass CPA Exam, 2 years experience
legal entity, meaning it is a separate entity from its owners…
Each country's own version of the FASB, such as the Canadian…
The revenue recognition principle is a cornerstone of accrual…
Requirements to become a CPA
150 credit hours, Pass CPA Exam, 2 years experience
Characteristics of a corporation
legal entity, meaning it is a separate entity from its owners…
38 terms
Fundamental Accounting Principles - Chapter 1
accounting
recordkeeping (bookkeeping)
external users
financial accounting
an information and measurement system that identifies, record…
the recording of transactions and events, either manually or…
users of accounting information who are not directly involved…
the area of accounting aimed at serving external users by pro…
accounting
an information and measurement system that identifies, record…
recordkeeping (bookkeeping)
the recording of transactions and events, either manually or…
39 terms
Fundamental Accounting Principles Chapter 10
Accelerated Depreciation Method
Amortization
Asset Book Value
Betterments
A method of depreciation which records greater depreciation e…
Process of allocating the cost of an intangible asset to expe…
net balance sheet amount. Computed as: asset total cost - A/D
expenditures that make a plant asset more efficient or produc…
Accelerated Depreciation Method
A method of depreciation which records greater depreciation e…
Amortization
Process of allocating the cost of an intangible asset to expe…
23 terms
Fundamental Accounting Principles Chapter 3
Accounting Period
Accrual basis accounting
accrued expenses
accrued revenues
Length of time covered by financial statements; also ... called…
Accounting system that recognizes revenues ... when earned and e…
Costs incurred in a period that are both unpaid and ... unrecord…
Revenues earned in a period that are both unrecorded ... and not…
Accounting Period
Length of time covered by financial statements; also ... called…
Accrual basis accounting
Accounting system that recognizes revenues ... when earned and e…
31 terms
Fundamental Accounting Principles Chapter 5
acid-test ratio
cash discount
cost of goods sold
credit memorandum
Ratio used to assess a company's ability to settle its curren…
Reduction in the price of merchandise granted by a seller ... to…
Cost of inventory sold to customers during a period; ... also ca…
Notification that the sender has credited the recipient's acc…
acid-test ratio
Ratio used to assess a company's ability to settle its curren…
cash discount
Reduction in the price of merchandise granted by a seller ... to…
16 terms
Fundamental Accounting Principles Chapter 6
average cost
conservatism constraint
consignee
consignor
See weighted average.
Principle that prescribes the less optimistic ... estimate when…
Receiver of goods owned by another who holds them for ... purpos…
Owner of goods who ships them to another party who will ... sell…
average cost
See weighted average.
conservatism constraint
Principle that prescribes the less optimistic ... estimate when…
35 terms
Fundamental Accounting Principles Chapter 8
Bank reconciliation
Bank statement
canceled checks
cash
Report that explains the difference between the ... book (compan…
Bank report on the depositor's beginning and ending ... cash bal…
Checks that the bank has paid and deducted from the ... deposito…
Includes currency, coins, and amounts on deposit in bank chec…
Bank reconciliation
Report that explains the difference between the ... book (compan…
Bank statement
Bank report on the depositor's beginning and ending ... cash bal…
27 terms
Fundamental Accounting Principles Chapter 11
Contingent liability
Current liabilities
Current portion of long-term debt
Deferred Income Tax Liability
is a potential obligation that depends on a future event aris…
also called short-term liabilities, are obligations due withi…
refers to that part of long-term debt due within one year or…
Corporation income taxes that are deferred until future years…
Contingent liability
is a potential obligation that depends on a future event aris…
Current liabilities
also called short-term liabilities, are obligations due withi…
59 terms
Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
10 terms
Chapter 02 Fundamental Accounting Principles
Charts of Accounts
Credit
Debit
General Journal
List of accounts used by a company; includes an identificatio…
Recorded on the right side; an entry that decreases asset and…
Recorded on the left side; an entry that increases asset and…
All-purpose journal for recording the debits and credits of t…
Charts of Accounts
List of accounts used by a company; includes an identificatio…
Credit
Recorded on the right side; an entry that decreases asset and…
59 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
22 terms
Chapter 02 Fundamental Accounting Principles
Account
Account Balance
Balance Column Account
Charts of Accounts
Record within an accounting system in which increases and dec…
Difference between total debits and total credits (including…
Account with debit and credit columns for recording entries a…
List of accounts used by a company; includes an identificatio…
Account
Record within an accounting system in which increases and dec…
Account Balance
Difference between total debits and total credits (including…
22 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Cost Principle/Measurement Principle
Revenue Recognition Principle
Assets
is an information and measurement system that identifies, rec…
Accounting principle that prescribes financial statements inf…
The principle prescribing that revenue is recognized when ear…
Resources a business owns or controls that are expected to pr…
Accounting
is an information and measurement system that identifies, rec…
Cost Principle/Measurement Principle
Accounting principle that prescribes financial statements inf…
31 terms
Fundamental Accounting Principles Chapter 5
acid-test ratio
cash discount
cost of goods sold
credit memorandum
Ratio used to assess a company's ability to settle its curren…
Reduction in the price of merchandise granted by a seller ... to…
Cost of inventory sold to customers during a period; ... also ca…
Notification that the sender has credited the recipient's acc…
acid-test ratio
Ratio used to assess a company's ability to settle its curren…
cash discount
Reduction in the price of merchandise granted by a seller ... to…
20 terms
Fundamental Accounting Principles Chapter 4
accounting cycle
classified balance sheet
closing entries
closing process
Recurring steps performed each accounting period, ... starting w…
Balance sheet that presents assets and liabilities in relevan…
Entries recorded at the end of each accounting period ... to tra…
Necessary end-of-period steps to prepare the accounts ... for re…
accounting cycle
Recurring steps performed each accounting period, ... starting w…
classified balance sheet
Balance sheet that presents assets and liabilities in relevan…
16 terms
Fundamental Accounting Principles Chapter 9
Accounts Receivable
Bad Debts
Direct write-off method
Matching (Expense recognition) principle
Amounts due from customers for credit sales
Accounts of customers who do not pay what they have promised…
When accounting for bad debts, records the loss from an uncol…
Requires expenses to be reported in the same accounting perio…
Accounts Receivable
Amounts due from customers for credit sales
Bad Debts
Accounts of customers who do not pay what they have promised…
59 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
59 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
17 terms
Fundamental Accounting Principles Chapter 19
Clock Cards
Cost Accounting System
Finished Goods Inventory
General Accounting System
Source document used to record the number of hours an employe…
Accounting system for manufacturing activities based on the p…
Account that controls the finished goods files, which acts as…
Accounting system for manufacturing activities based on the p…
Clock Cards
Source document used to record the number of hours an employe…
Cost Accounting System
Accounting system for manufacturing activities based on the p…
Fundamental Accounting Principles Chapter 2
SOURCE DOCUMENTS
ACCOUNT
GENERAL LEDGER
ASSET ACCOUNTS
Identify and describe transactions and events entering the ac…
record of increases and decreases in a specific asset liabili…
record containing all accounts used by a company
...
SOURCE DOCUMENTS
Identify and describe transactions and events entering the ac…
ACCOUNT
record of increases and decreases in a specific asset liabili…
59 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
28 terms
Chap 1; Fundamental Accounting Principles
Accounting
Lenders (Creditors)
Shareholders (Investors)
Internal Information Users
Is the language of business. Is an information and measuremen…
Loan money or other resources to an organization. They use ac…
Are the owners of a corporation. They use accounting reports…
Users of accounting information who are directly involved in…
Accounting
Is the language of business. Is an information and measuremen…
Lenders (Creditors)
Loan money or other resources to an organization. They use ac…
Fundamental Accounting Principles Chapter 1
ACCOUNTING
BALANCE SHEET
ACCOUNTING ENTITY
ACCOUNTING EQUATION
a system that collects and processes (analyzes, measures, and…
reports that amount of assets, liabilities, and stockholders'…
the organization for which financial data are to be collected
Asstes= Liabilities+Equity
ACCOUNTING
a system that collects and processes (analyzes, measures, and…
BALANCE SHEET
reports that amount of assets, liabilities, and stockholders'…
37 terms
Fundamental Accounting Principles Chapter 10
Plant Assets
Cost
Land Improvements
Depreciation
Tangible assets used in a company's operations that have a us…
Includes all normal and reasonable expenditures necessary to…
Have limited useful lives and are used up. Ex: Parking lot su…
Process of allocating the cost of a plant asset to expense in…
Plant Assets
Tangible assets used in a company's operations that have a us…
Cost
Includes all normal and reasonable expenditures necessary to…
42 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Financial Accounting Standards Boards…
Securities and Exchange Commissions (S…
InternationalL Accounting Standards Bo…
is an information and measurement system that identifies, rec…
Independent group of full time members responsible for settin…
Federal agency Congress has charged to set reporting rules fo…
Group that identifies preferred accounting practices and enco…
Accounting
is an information and measurement system that identifies, rec…
Financial Accounting Standards Boards…
Independent group of full time members responsible for settin…
31 terms
Fundamental Accounting Principles Chapter 14
Convertible Bonds
Coupon Bonds
Debt-to-Equity Ratio
Discount on Bonds Payable
Bonds that bondholders can exchange for a set number of issue…
Bonds with interest coupons attached to their certificates; b…
Defined as total liabilities divided by total equity; shows t…
Difference between a bond's par value and its lower issue pri…
Convertible Bonds
Bonds that bondholders can exchange for a set number of issue…
Coupon Bonds
Bonds with interest coupons attached to their certificates; b…
30 terms
Fundamental Accounting Principles Chapter 2
Source Documents
Account
General ledger
Asset Accounts
Identify and describe transactions and events entering the ac…
record of increases and decreases in a specific asset liabili…
record containing all accounts used by a company
...
Source Documents
Identify and describe transactions and events entering the ac…
Account
record of increases and decreases in a specific asset liabili…
19 terms
Fundamental Accounting Principles Chapter 17
Business Segment
Common-size Financial Statement
Comparative Financial Statements
Efficiency
Part of a company that can be separately identified by the pr…
Statement that expresses each amount as a percent of a base a…
Statement with data for 2 or more successive periods placed i…
Company's productivity in using assets; usually measured rela…
Business Segment
Part of a company that can be separately identified by the pr…
Common-size Financial Statement
Statement that expresses each amount as a percent of a base a…
25 terms
Fundamental Accounting Principles Wild, 22e Chapter 4
Working Papers
work sheet
Work sheet benefits
Work Sheet
Analyses and other informal reports prepared by accountants a…
Spreadsheet used to draft an unadjusted trial balance, adjust…
Aids the preparation of financial statements.... Reduces the pos…
Working Papers
Analyses and other informal reports prepared by accountants a…
work sheet
Spreadsheet used to draft an unadjusted trial balance, adjust…
54 terms
Fundamental Accounting Principles Chapter 13
Appropriated Retained Earnings
Authorized Stock
Basic Earnings per Share
Book Value per Common Share
Retained earnings separately reported to inform stockholders…
Total amount of stock that a corporation's charter authorizes…
Net income less any preferred dividends and then divided by w…
Recorded amount of equity applicable to common shares divided…
Appropriated Retained Earnings
Retained earnings separately reported to inform stockholders…
Authorized Stock
Total amount of stock that a corporation's charter authorizes…
15 terms
Fundamental Accounting Principles ch. 18 (Managerial Accounting)
Direct materials
Classification by behavior
Classification by traceability
Classification by controllability
Tangible components of a finished product. Costs derived from
A type of cost classification. Is the cost fixed or variable?…
A type of cost classification. A cost can be traced to a cost…
A type of cost classification. Is the cost controllable or no…
Direct materials
Tangible components of a finished product. Costs derived from
Classification by behavior
A type of cost classification. Is the cost fixed or variable?…
56 terms
Fundamental Accounting Principles: Chapter 1
Accounting
Accounting equation
Assets
Audit
Information and measurement system that identifies, records,…
Assets = Liabilities + Equity (balance sheet equation)
Resources a business owns or controls.
Analysis and report of an organization's accounting system, i…
Accounting
Information and measurement system that identifies, records,…
Accounting equation
Assets = Liabilities + Equity (balance sheet equation)
19 terms
Fundamental Accounting Principles: Chapter 2
Account
Account Balance
Balance column account
Chart of accounts
Record within an accounting system in which increases and dec…
Difference between total debits and total credits (including…
Account with debit and credit columns for recording entries a…
List of accounts used by a company.
Account
Record within an accounting system in which increases and dec…
Account Balance
Difference between total debits and total credits (including…
59 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Recordkeeping
Bookkeeping
External users
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Accounting
is an information and measurement system that identifies, rec…
Recordkeeping
is the recording of transactions and events, either manually…
Chapter 01 Fundamental Accounting Principles
Recordkeeping
Accounting
Bookkeeping
External users
is the recording of transactions and events, either manually…
is an information and measurement system that identifies, rec…
is the recording of transactions and events, either manually…
Person using accounting information who are not directly invo…
Recordkeeping
is the recording of transactions and events, either manually…
Accounting
is an information and measurement system that identifies, rec…
23 terms
Fundamental Accounting Principles Chapter 3
Accounting Period
Accrual basis accounting
accrued expenses
accrued revenues
Length of time covered by financial statements; also ... called…
Accounting system that recognizes revenues ... when earned and e…
Costs incurred in a period that are both unpaid and ... unrecord…
Revenues earned in a period that are both unrecorded ... and not…
Accounting Period
Length of time covered by financial statements; also ... called…
Accrual basis accounting
Accounting system that recognizes revenues ... when earned and e…
23 terms
Fundamental Accounting Principles Chapter 3
Accounting Period
Accrual basis accounting
accrued expenses
accrued revenues
Length of time covered by financial statements; also ... called…
Accounting system that recognizes revenues ... when earned and e…
Costs incurred in a period that are both unpaid and ... unrecord…
Revenues earned in a period that are both unrecorded ... and not…
Accounting Period
Length of time covered by financial statements; also ... called…
Accrual basis accounting
Accounting system that recognizes revenues ... when earned and e…
22 terms
Chapter 02 Fundamental Accounting Principles
Account
Account Balance
Balance Column Account
Charts of Accounts
Record within an accounting system in which increases and dec…
Difference between total debits and total credits (including…
Account with debit and credit columns for recording entries a…
List of accounts used by a company; includes an identificatio…
Account
Record within an accounting system in which increases and dec…
Account Balance
Difference between total debits and total credits (including…
23 terms
Fundamental Accounting Principles Chapter 14
Convertible Bonds
Coupon Bonds
Debt-to-Equity Ratio
Discount on Bonds Payable
Bonds that bondholders can exchange for a set number of issue…
Bonds with interest coupons attached to their certificates; b…
Defined as total liabilities divided by total equity; shows t…
Difference between a bond's par value and its lower issue pri…
Convertible Bonds
Bonds that bondholders can exchange for a set number of issue…
Coupon Bonds
Bonds with interest coupons attached to their certificates; b…
31 terms
Fundamental Accounting Principles Chapter 5
acid-test ratio
cash discount
cost of goods sold
credit memorandum
Ratio used to assess a company's ability to settle its curren…
Reduction in the price of merchandise granted by a seller ... to…
Cost of inventory sold to customers during a period; ... also ca…
Notification that the sender has credited the recipient's acc…
acid-test ratio
Ratio used to assess a company's ability to settle its curren…
cash discount
Reduction in the price of merchandise granted by a seller ... to…
31 terms
Fundamental Accounting Principles Chapter 5
acid-test ratio
cash discount
cost of goods sold
credit memorandum
Ratio used to assess a company's ability to settle its curren…
Reduction in the price of merchandise granted by a seller ... to…
Cost of inventory sold to customers during a period; ... also ca…
Notification that the sender has credited the recipient's acc…
acid-test ratio
Ratio used to assess a company's ability to settle its curren…
cash discount
Reduction in the price of merchandise granted by a seller ... to…
18 terms
Fundamental Accounting Principles Chapter 2
Account
General ledger
Chart account
Unearned Revenue
record of increases and decreases in a specific asset liabili…
record containing all accounts used by a company
a list of all accounts and their account numbers
liability that is settled in the future when a company delive…
Account
record of increases and decreases in a specific asset liabili…
General ledger
record containing all accounts used by a company
30 terms
Chapter 01 Fundamental Accounting Principles
Accounting
Financial accounting
Managerial Accounting
Cost Principle/Measurement Principle
is an information and measurement system that identifies, rec…
area of accounting aimed at serving external users by providi…
area of accounting that serves the decision-making needs of i…
Accounting principle that prescribes financial statements inf…
Accounting
is an information and measurement system that identifies, rec…
Financial accounting
area of accounting aimed at serving external users by providi…
30 terms
Fundamental Accounting Principles Chapter 2
SOURCE DOCUMENTS
ACCOUNT
GENERAL LEDGER
ASSET ACCOUNTS
Identify and describe transactions and events entering the ac…
record of increases and decreases in a specific asset liabili…
record containing all accounts used by a company
...
SOURCE DOCUMENTS
Identify and describe transactions and events entering the ac…
ACCOUNT
record of increases and decreases in a specific asset liabili…
20 terms
Fundamental Accounting Principles: Chapter 4
Accounting cycle
Classified balance sheet
Closing entries
Closing process
Recurring steps performed each accounting period, starting wi…
Balance sheet that presents assets and liabilities in relevan…
Entries recorded at the end of each accounting period to tran…
Necessary end-of-period steps to prepare the accounts for rec…
Accounting cycle
Recurring steps performed each accounting period, starting wi…
Classified balance sheet
Balance sheet that presents assets and liabilities in relevan…
46 terms
Fundamental Accounting Principles - Chapter 1
accounting
recordkeeping (bookkeeping)
external users
financial accounting
an information and measurement system that identifies, record…
the recording of transactions and events, either manually or…
users of accounting information who are not directly involved…
the area of accounting aimed at serving external users by pro…
accounting
an information and measurement system that identifies, record…
recordkeeping (bookkeeping)
the recording of transactions and events, either manually or…
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