Accounting Concepts
Unit 1
Unit 2
Unit 2 Continued...
Unit 2 Continued:
100
What is the concept used when a source document is used to track each transaction?
What is Objective Evidence?
100
A person who summarizes, analyzes, and interprets accounting information.
Who is an accountant?
100
Journal entries recorded to update general ledger accounts at the end of a fiscal period
What is adjusting entries?
100
Financial statements are prepared with the expectation that a business will remain in business indefinitely.
What is Going Concern?
100
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements.
What is a worksheet?
200
Changes in financial information reported for a specific period of time in the form of financial statements.
What is Accounting Period Cycle?
200
A person who does general accounting work plus summarizing and analyzing accounting information.
Who is a bookkeeper?
200
The account used to summarize the owner's equity in the business.
What is capital?
200
Revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period.
What is Matching Expenses with Revenue Concept?
200
A group of accounts
What is a ledger?
300
Financial information is recorded and reported separately from the owner's personal financial information.
What is Business Entity?
300
A business owned by one person?
What is a sole proprietorship?
300
A journal entry made to correct an error in a ledger.
What is a correcting entry?
300
The length of time for which a business summarizes and reports financial information.
What is Fiscal Period?
300
A financial statement showing the revenue and total expenses for a fiscal period.
What is Income Statement?
400
The same accounting procedures must be followed in the same way in each accounting period.
What is Consistent Reporting?
400
A legal entity that is separate and distinct from its owners.
What is a corporation?
400
The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current.
What is file maintenance?
400
Accounts used to accumulate information from one fiscal period to the next.
What are permanent accounts?
400
Accounts used to accumulate information until it is transferred to the owner's capital account.
What are temporary accounts?
500
Financial statements contain all information necessary to understand a business' financial information.
What is Adequate Disclosure?
500
A business in which 2 or more people combine their assets and skills.
What is a partnership?
500
Financial rights to the assets of a business.
What is equities?
500
A trial balance prepared after the closing entries are posted.
What is a post closing trial balance?
500
A proof of equality of debits and credits in the general ledger.
What is trial balance?
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