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26 Cards in this Set

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  • Back
  • 3rd side (hint)
Historical Cost Assumption
T he assumtion that the original aquistion cost of a resource, not its current market value or replacement cost, is the basis to be used in accounting.
The _____ provides that ____ which are incurred during a particular period to be matched against the ____ which are earned during the period.
Matching concept, expenses, revenues.
Financial Accounting is primarily concerned with:
external users
The concept of the ____ basis of accounting reflects the point that revenues are recorded as they are earned, not as cash is recieved.
Accounts Recievable
All the information that could help make a decision must be included.
Free from bias
Bringing someone in as a reliable source.
Small amounts don't have to be depreciated.
using the same tax method year after year.
comparing from year to year
doesn't deal with dollars.
Under the accrual basis of accounting:
events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or recieved.
earned, but not paid.
The usual ordering of the asset classifications on the balance sheet.
Liability accounts
notes payable, unearned revenues, and interest payable
The source of a firm's assets are from:
It;s liabilities and owners equity
Rental Revenue
Does not normally show up on the balance sheet.
Unearned Revenues
recieved and recorded as liabilities before they are earned.
Accrued Revenue
Earned, but not recieved
allocating the cost of an asset to expense over its useful life ina rational and systematic manner.
Stockholders Equity is not affected by:
Supplies bought with cash
We value and record assets based on the ___ concept.
Historical Value
A chart of accounts for a business firm:
lists the accounts a firm may use the accounting system.
The financial position of a firm a a particular point in time is reflected in the:
balance sheet
Balance Sheet
reports the assets, liabilities, and stockholders equity at a specific time.
Furniture and Fixtures are in which type of account?
_____ are assets which are aquired and or produced for sale in the continuing opertaions of a business
The account prepaid income taxes is properly classified as:
an asset account
accrued expense
an expense that has been incurred but not yet paid.