Accounting information is based on actual cost because actual cost is considered objective.
What is the Cost Principle
100
Lenders, Shareholders, Customers and the Government
Who are External Users of the Financial Statements
100
Everyone has one. But for some it does not point North.
What is a Moral Compas.
100
FIFO, LFO, Weighted Average and Specific Identification
What are methods of valuing inventory
100
Assets = Liabilites + Owners Equity
What is the Accounting Equation
200
The private group that sets both broad and specific principles for U.S. based accounting
What is FASB - Financial Accounting Standards Board
200
The statement that shows the Company's financial condition at a specific point in time
What is the Balance Sheet
200
The concurrently existing components of Opportunity, Rationalization, Financial Pressure
What is the Fraud Triangle
200
The unique sales level at which a company earns neither a profit nor incurs a loss.
What is the break-even point of sales
200
The process of allocating the cost of a plant asset over its useful life in a systematic and rational manner
What is Depreciation
300
Presumes that the life of a company can be divided into time periods, such as months and years.
What is the Time Period Assumption
300
A record containing all accounts used by the company
What is the General Ledger
300
Control and safeguarding of the asset is most effective when only one person is accountable for a given task
What is Establishment of Responsibility
300
They reset revenue, expense and withdrawal account balances to zero at the end of the period & help to summarize a period’s revenues and expenses in the Income Summary account.
What are closing entries
300
The cost of a Finished Good unit includes these three types of cost.
What is a Direct Material, Direct Labor and Factory Overhead
400
Revenues are recognized when earned and expenses are recognized when incurred.
What is Accrual Based accounting
400
Income Statement, Statement of Owners Equity, Balance Sheet, Statement of Cash Flow
What is the order of preparation of the Financial Statements
400
The process of adjusting the cash balance per books and the cash balance per bank to their correct or true balance as of a given date.
What is the Bank Reconciliation
400
Continually updates the inventory accounting records for every merchandising transactions
What is a Perpetual Inventory System of Accounting
400
An arbitrary amount assigned to each share of stock when it is authorized
What is Par Value
500
Materiality and Cost-Benefit
What are the two basic contraints on financial reporting under GAAP
500
The three sections, listed in order of presentation, for which the cash inflows and cash outflows of a Company are detailed on the Cash Flow Statement.
What is the Operating, Investing and Financing sections of the Cash Flow Statement.
500
The accounting regulation enacted in July 2002 as a result of numerous high profile accounting scandals
What is the Sarbanes-Oxley Act
500
This rate is used during the period to allocate estimated overhead to jobs.
What is the Predetermined Overhead Rate
500
The amount by which a product’s unit selling price exceeds its total variable cost per unit; this amount is used to cover fixed costs and generating profits.