Show:
Principles
Assumptions
Formulas and Statements
Hodgepodge
Potpourri
100
Usually prescribes that accounting information is based on actual cost.
What is the cost principle or measurement principle.
100
Accounting information reflects a presumption that the business will continue to operate instead of being closed or sold.
What is the going-concern assumption
100
The accounting equation
What is Assets=Liability + Equity
100
Resources owned or controlled by a company and that have expected future benefits
What is Assets.
100
Otherwise known as building, land and equipment
What is Plant Assets.
200
Provides a guidance on when a company must recognize revenue.
What is revenue recognition principle
200
Means that we can express transactions and events in monetary, or money, units.
What is Monetary unit assumption
200
The difference between Revenue and Expenses
What is Net Income
200
Written promise of another entity to pay a definite sum of money on a specified future date to the holder of the contract.
What is a Note.
200
A promise in the future to deliver a product or service already paid for.
What is unearned revenue.
300
Prescribes that a company record the expenses it incurred to generate the revenue reported.
What is matching principle or expense recognition principle.
300
Presumes that the life of a company can be divided into time periods, such as months and years.
What is time period assumption
300
Explains changes in equity from net income (loss) and from any owner investment and withdrawals over a period of time.
What is Statement of Owners Equity
300
This method of inventory assigns costs to both inventory and cost of goods sold assuming that inventory items are sold in the order acqured
What is FIFO- First in First out
300
Assets that represent pre-payments of future expenses.
What is prepaid accounts.
400
Prescribes that a company report the details behind financial statements that would impact users' decisions.
What is full disclosure principle
400
Means that a business is accounted for separately from other business entities, including it's owner.
What is business entity assumption.
400
This statement describes a company's financial position at a point in time
What is the balance sheet
400
Claims against assets. Obligations to transfer assets or provide products or services to others.
What is a Liability
400
This method of assign costs assumes that the most recent purchases are sold first.
What is LIFO- Last in First out
500
Basic assumptions, concepts, and guidelines for preparing financial statements.
What is General Principles
500
These are the three forms a business entity can take on
What is proprietorship, partnership, or corporation.
500
The four financial statements of accounting
What is Income Statement, Balance Sheet, Statement of Cash Flows and Statement of Owners Equity
500
This is how inventory is to be reported on the balance sheet
What is Lower of Cost or Market
500
A temporary account (only used for the closing process) that contains a credit for the sum of all revenues and a debit for all expenses.
What is Income Summary