Accounting Random
Assets = liabilities + equity
What is the accounting equation?
Financial reporting standards for state and local governments in the United States
GASB
a financial report that shows a company's income and expenditures during a set period.
What is an income statement?
This principle states that any item that may impact the decision-making process of an investor must be recorded.
What is the Materiality Principle?
GAAP
Generally Accepted Accounting Principles
Under this inventory costing method, the most recent purchases are expensed first
What is LIFO?
a grouping of money and other resources used to finance government activities.
What is a Fund?
This statement shows a company's assets, liabilities, and equity at a point in time
What is the balance sheet?
The principle that requires companies to disclose all information that is relevant to their financial statements.
What is the Full Disclosure Principle?
FASB
Financial Accounting Standards Board
The three sections in the fraud triangle are Pressures, Rationalization, and
What is Opportunity?
A fund for government activities that operate LIKE BUSINESSES
What is an Enterprise Fund?
additional information that provide detailed explanations, assumptions, and context for the figures presented in the financial statements.
What are Disclosure Notes?
This principle states that expenses should be recognized in the same period as the revenues it helped generate
What is the Matching Principle?
ACFR
Annual Comprehensive Financial Report
Another word for ghost entries
a commitment to pay for goods or services in the future
what is an encumbrance?
a section of a company's financial statements that includes non-cash items that affect a company's equity.
Other-Comprehensive Income
The principle that assumes that any organization will continue to operate its business for the foreseeable future
What is the Going Concern Principle?
FASAB
Federal Accounting Standards Advisory Board
a business transaction between independent parties who are not related and have equal bargaining power.
arms-length transaction
Term evaluating whether the current period's resources are sufficient to support the current period's services
What is Interperiod Equity?
a section within a company’s annual report or quarterly filing where executives analyze the company’s performance.
What is an MD&A?
The principle stating that the same accounting methods should be used for similar items over time.
What is the Consistency Principle?
RSI
Required Supplementary Info