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33 Cards in this Set
- Front
- Back
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Accounts Receivable |
Expected future cash receipts arising from permitting customers to buy now and pay later, typically relatively small balances due within a short time period |
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Accrual |
Accounting recongnition of revenue or expense in a period before cash is exchanged |
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Accrual Accounting |
Accounting system which recognizes revenues when earned and expenses when incurred regardless of when the related cash is exchanged |
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Accrued Expenses |
Expenses that are recognized before cash is paid. an example is accrued salaries expense |
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Adjusting entry |
Entry that updates account balances prior to preparing financial statements; a bookkeeping tool. Adjusting entries never affect the Cash account. |
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American Institute of Cerified Public Accountants (AICPA |
National association that serves the educational and professional interests of members of the public accounting profession: membership is voluntary |
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Asset exchange Transaction |
A transaction, that decreases one asset and increases another asset; such as the purchase of land with cash, total assets remain unchanged |
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Asset source transaction What are the 3 types? |
A transaction that increase both an asset and a claim on assets Three Types -from owners (equity) -from Creditors (liabilities -Earnings from operations (revenues) |
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Asset use Transaction |
A transaction that decreases both an asset and a clain on assets; the three types of assets use transactions are distributions (transfer to owners), liability payments (to creditors), or expenses (cost incurred to operate the business) |
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Carrying Value |
Face amount of a bond liability less any unamortized bond discount or plus any amortized bond premium |
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Claims exchange transaction |
A transaction that decreases one claim and increases another claim; total claims remain unchanged. For Example accuring interest expense is a claims exchange transaction; liabilities increase, and the expense recongnition decreases retained earnings. |
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Code of Professional Conduct |
Guidelines established by the AICPA to promote ethical conduct among CPAs. Members agree to adhere to this code, which goes beyond legal requirements |
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Conservatism |
A principle that guides accountants in uncertain circumstances to select the alternative that produces the lowest amount of net income |
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Cost |
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Deferral |
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Depreciation Expense |
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Expense |
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Internal Controls |
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Matching Concept |
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Opportunity |
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Period costs |
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Prepaid items |
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Pressure |
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Rationalization |
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Realization |
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Recognition |
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Revenue |
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Salaries Payable |
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Salvage value |
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Straight-line depreciation |
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Unearned revenue |
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Useful life |
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Vertical Statements Model |
Card back |
