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GAAP
A+L= OE
Financial Statements
Documents of the source
Adusting
100
Accounting takes place over a specific time period known as the fiscal period
What is the time period concept
100
This involves an increase in debit when an owner takes money out of the business
What is drawings
100
Contains expense and revenue, excludes assets, liabilities and drawings
What is an income statement
100
one who purchases photo supplies with cash receives this type of document.
What is a cash sales slip
100
This is the most simplistic method of calculating amortization/depreciation
What is straight line
200
Accounting for purchases must be at the cost price to the purchaser
What is the cost principle
200
This increases by debit, and is the cost of doing business
What is an expense
200
Contains assets, liabilities and capital, excludes expences and revenue
What is a balance sheet
200
a document that is given to a person in result of the bank taking money our or putting money into the account
What is a bank advice
200
This is an offset to a related account
What is a control account
300
Every expense item related to the revenue earned must be recorded in the same accounting period as the revenue it helped earn
What is the matching principle
300
This increases by credit by earnings from sales or services
What is revenue
300
Contains all accounts to see if left and right side balance
What is a trial balance
300
one who receives this has not paid for the item that they intend to purchase, this document contains a summary of the quantity and price aswell
What is a purchase invoice
300
After an account is adjusted the total is know as this
What is net book value
400
Changing from the direct write-off method to the allowance method is a violation of this GAAP principle
What is the consistency principle
400
This involves debit an expense account and credit an asset account for goods purchased but not yet received
What is prepayments
400
This contains beginning capital + net income - drawings = ending capital
What is statement of OE
400
the source document for a payment made by cheque
What is a cheque copie
400
An example of this type of adjustment would be the use of prepaid insurance
What is a prepaid expense
500
A company that fails to disclose the appropriate info to the public is a violation of this GAAP principle
What is the full disclosure principle
500
This involves debit liabilities and credit revenue for services not yet rendered
What is unearned revenue
500
This statement aims to balance cash balance per bank and cash balance book
What is bank recognition
500
A business paper that lists the money coming in from the customers
What is a "cash recipes daily summary"
500
This type of adjustment relies on estimating a capital assets useful life
What is amortization