Principles
Ratios
Assumptions
Equations
Financial Statements
100
Prescribes that accounting information is based on actual cost.
What is the measurement principle (cost principle).
100
What is the current ratio?
Current Assets/Current Liabilities
100
What are the 4 basic assumptions?
Going-concern, monetary unit, time period, and business entity.
100
What is the accounting equation?
Assets=Liabilities+Owner's Equity
100
What are the four statements of accounting?
Income statement, statement of owner's equity, balance sheet, statement of cash flows.
200
Provides guidance on when a company must recognize revenue.
What is the revenue recognition principle.
200
What is the Acid-test ratio?
Quick Assets (Cash+Short Term Investments+Current Receivables)/Current Liabilities
200
Accounting information reflects the presumption that the business will continue operating instead of being closed or sold.
What is the going concern.
200
A debit is on which side of the accounting equation?
The left side.
200
Describes a company's revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities.
What is an income statement?
300
Prescribes that a company record the expenses it incurred to generate the revenue report.
What is the matching principle (expense recognition principle).
300
What is the profit margin ratio?
Net Income/Net Sales
300
We can express transactions and events in monetary or money units.
What is monetary concern or monetary unit?
300
What is net income?
Revenue-Expenses
300
Explains changes in equity from net income (or loss) and from any owner investment and withdrawals over a period of time.
What is the statement of owner's equity?
400
Prescribes a company report the details behind financial statements that would impact user's decisions.
What is the full disclosure principle.
400
What is debt ratio?
Total Liabilities/Total Assets
400
Presumes the life of a company can be divided in to time periods such as months and years.
What is the time period assumption?
400
What is the equity equation?
Current Equity=Beginning Equity+Net Income+Investments-Withdrawals
400
Describes a company's financial position at a point in time.
What is a balance sheet?
500
The four basic accounting principles.
What are measurement (cost principle), revenue recognition, matching principle, and full disclosure?
500
What is return on total assets ratio?
Net Income/Average Total Assets
500
Means that a business is accounted for separately from other business entities, including its owners.
What is the business entity assumption?
500
What is gross profit?
Sales-Cost of Goods Sold
500
Identifies cash inflows (receipts) and cash outflows (payments) over a period of time.
What is the statement of cash flows?
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