Assets
Amounts due from customers
What are accounts receivable?
Accounting Method in which income is recorded when it is earned and expenses are recorded when they are incurred.
What is Accrual?
Financial statements are prepared with the expectation that a business will remain in operation indefinitely
What is 'Going Concern'?
Incentive or pressure to commit fraud.
What is motivation?
The statement that reports assets, liabilities and owner's equity as of a specific date
What is the balance sheet?
A list of assets, usually containing the value of each item.
What is inventory?
A portion of a public corporation which is owned by another party.
What is a share?
Revenue from business activites and expenses associated with that revenue are recorded in the same period.
What is the Matching Principle?
A chance to commit fraud without being caught.
What is opportunity?
A formal report that shows what an individual owns, owes and the difference between the two.
What is a net worth statement?
An amount of cash kept on hand to make small payments.
What is petty cash?
A list of all the accounts used by a business
What is a chart of accounts?
A source document is prepared for every transaction.
What is 'Objective Evidence'?
True or false:
Most perpetrators of fraud are repeat offenders.
Only 13% have anything negative on their employment records.
The financial statement showing revenue and expenses for a fiscal period
What is the income statement?
Cash paid for an expense in one period that is not used until a later period.
What is a prepaid expense?
The branch of accounting that focuses on reporting information for internal users.
What is Managerial Accounting?
Financial information is reported separately from the owner's personal financial information.
What is 'Business Entity'?
The creator of the concept of the fraud triangle.
Who is Donald Cressey?
The standards and rules U.S. accountants follow while recording and reporting financial activities.
What is GAAP? (Generally Accepted Accounting Principles)
An asset expected to be held for more than one year before being liquidated.
What is a long-term asset?
The process of using computer software to analyze large amounts of data extracted from accounting systems (or other databases)
What is Data Analytics?
Financial Statements contain all information necessary to understand a business's financial position.
Reasoning used to justify commiting fraud.
What is rationalization?
The length of time for which a business summarizes its financial information and reports its financial performance
What is a fiscal period?