Accounting 1
Contains all the accounts that a business uses
General Ledger
are the ground rules of accounting that should be followed when preparing financial statements
Concepts
helps the accountant choose between 2 equally likely alternatives
Conservatism Constraint
agreed upon rules of accounting, and are basic, understood beliefs.
Assumptions
All information pertaining to the operations and financial position of the entity must be reported within the period of time in question.
Full Disclosure Principal
is the process by which random transactions become organized in a manner according to accounts
Posting
Revenue is earned and recognized upon product delivery or service completion
Revenue Recognition Principle
APB
Accounting Principal Board
IFRS
International Federal Reporting Standard
AICPA
American institute of certified
public accountants.
Step 1 when posting Journal Entries to Ledger
Enter the date of the journal entry in the Date column.
FASB
financial accounting standard Board
Financial Statements are prepared under the assumption that the company will stay in business indefinitely
Going Concern Assumption
IASB
International Accounting Standard Board
SEC
Securities and Exchange Commission
is a limit, regulation, or confinement within prescribed bounds
Constraint
Fairness uninfluenced by emotional or personal opinion
Objectivity
A negotiable financial instrument representing financial value one of them would be a stock.
Securities
Helps detect and explain similarities and differences in companies
Comparability
GASB
Governmental Accounting Standard Board
big enough to make a difference in the user’s decision-making process.
Materiality Constraint
Cost of doing business is recorded as the revenue they help generate
Matching Principle
Assets are recorded at historical cost, not fair market value
Cost Principle Assumption
The entity's activities are separated in months, quarters and years
Time Period Assumption
A law governing the secondary trading of securities in the U.S
Securities Act of 1934