Principles
What is revenue recognition?
Revenue that is recognized when a performance obligation is satisfied.
What kind of entity has economic or financial activity that can be defined within the entity?
Economic entity.
What is the only accounting method accepted by GAAP?
Accrual Basis Accounting.
What is the name of our mascot?
Lucas
What is the Matching Principle?
Which assumption entails a stable unit of measure that records economic transactions?
Monetary Unit assumption.
Why is Accrual Accounting used over cash basis in public companies?
It depicts a more accurate picture of current economic positions.
What year was Fairfield established?
1942
What is a traceable cost?
Costs directly associated with a specific revenue.
What assumption splits the life of a business into artificial time periods?
Periodicity assumption.
Under the cash basis, when are revenues and expenses recorded?
When cash is received, and when cash is paid.
Which Fairfield dorm building is haunted?
Dolan Hall
What is a period cost?
Costs that cannot be directly associated with specific units of production.
What is it called when a business is stable enough to stay active for the foreseeable future?
Going concern assumption.
What is the importance of the realization principle?
Alleviates the mismatch that exists under cash-basis accounting and provides more useful and accurate information to users.
What form of wildlife is commonly found on campus?
Turkeys.
When is a traceable cost expensed? When is a period cost expensed?
A traceable cost is expensed in the same period as the specific revenue. Period costs are expensed in the period benefitted.
Which assumption has the timeliness qualitative charateristic?
Periodicity assumption.
Calculate operating cash flow for 2021, 2022, and 2023 under the accrual and cash basis for the following scenario:
Tharrington Corp sells a magazine subscription on 1/1/21 for 180 dollars. The subscription includes an issue every month for the next 3 years ($5 * 12 months * 3 years). Operating costs are 30 dollars per year. Payment is made in full at the time of purchase.
Cash:
2021 - 150
2022 - (30)
2023 - (30)
Accrual:
2021 - 30
2022 - 30
2023 - 30
What are the 5 Jesuit values?
Cura Personalis
Magis
People for others
Contemplatives in Action
Finding God in all things