Assumptions/principles
Going concern
what is the company will continue to operate into forseeable future without forced liquidation?
Verifiability
What is independent parties can agree upon measurement?
The thing that always stay in balance after every transaction
What is the accounting equation?
The thing you should always write out for test problems..
What are journal entries?
My favorite accounting scandal
What is Enron?
Monetary unit assumption
comparability
What is debit Unearned revenue 500, credit service revenue 500?
True or false: All business events constitutes a transaction (or journal entry)
What is false?
The year I came to America
What is 2012?
Cost principle
What is recording assets at historical cost?
Consistency
What is between accounting periods in the SAME company?
Three investors invest in company each at $10,000
What is debit cash 30,000, credit common stock 30,000?
Two type of accounts AJE always affects
What is balance sheet and income statement account?
What I want to do when I retire in the future
What is becoming an accounting professor?
Time period assumption
What is the long life of a company can be reported over a series of shorter time periods?
Relevance
What is information makes a difference in decision making?
JE for employees wage owed at end of month of $690
What is debit wage expense 690, credit wage payable 690?
Purpose of trial balance
What is to prove debits = credits? (also catch obvious errors)
The month I was born
What is December?
Economic entity
What is business transactions are separate from personal transactions of owners?
Faithful representation
What is complete, neutral, and free from error?
What is Debit wage expense 1500, credit cash 1500?
Normal balance of dividends
What is a debit?
My dream university as a kid
What is Rice University?