STRONG FOUNDATIONS
Because accounting helps people make better business decisions, it is called ___________
What is the "language of business?"
What are ethics?
Owned or controlled by a company with the expectation of future benefits
What are assets?
This increases with a purchase of supplies for cash
What is "Supplies?"
Attitude of justifying fraud as acceptable
What is rationalizaton?
Group using accounting info. that isn't involved in operations.
What is an external user?
Procedures a company establishes to reduce fraud
What are internal controls?
Obligations to others to provide assets, products, or services
What are liabilities?
These 2 accounts increase when services are provided for cash
What are "Cash" and "Revenue Earned?"
Another name for the expense recognition principle
What is the matching principle?
A purchasing manager is an example of this type of "user."
What is internal?
Rules and concepts that govern financial accounting
What are Generally Accepted Accounting Principles or "GAAP?"
Income from sales of products and services
What is revenue?
This account is decreased when a customer pays on their account
Group tasked with setting accounting principles
What is the Financial Accounting Standards Board or FASB?
Branch of accounting serving internal users rather than external users.
What is managerial accounting?
"Revenue should be recorded at the time goods or services are provided"
What is the revenue recognition principle?
Increases when the owner contributes money or other assets to the business
What is equity?
Account (other than cash) affected when an owner takes cash out of the business for personal use
What is "Owner, Withdrawals?"
Considered to be the best method of reducing/stopping fraud
What is prevention?
Branch of accounting providing information for both internal AND external users.
What is financial accounting?
"Accounting information is based on actual cost"
What is the measurement principle (or cost principle)?
The transactions, companies, and points in time the accounting equation applies to
What is "all?"
Term used to indicate that the left and right side of the accounting equation equal
What is balance?
Verify the effectiveness of internal control measures
Who are auditors?