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13 Cards in this Set
- Front
- Back
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Generally Accepted Accounting (GAAP) |
accounting rules in the US |
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Financial Accounting Standards Board (FASB) and SEC |
two agencies set the generally accepted accounting (GAAP) |
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International Financial Reporting Standards (IFRS) |
created and developed by an independent, non-for proft organization called the International Accounting Standards Board (IASB) |
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Assumption |
Monetary Unit Assumption requires that companies include in the accounting records only transaction data that can be expressed in terms of moeny |
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Economic Entity Assumption |
Requires that activities of the entity be kept separate and distinct from the activities of its economic entities. |
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Historical Cost Principle |
Dictates that companies record assets at their cost. |
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Accrual Bassis Accounting |
Transactions recorded in the periods in which the event occurs, NOT when it is paid |
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Expense Recognition Principle |
Match expenses with revenues in the period when the company makes effort to generate those revenue |
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Assets |
-Cash and everything that can be turned into cash or consumed in a year -Investments (company purchase stock) -Property, Plant, and Equipment -Intangible asets (Have no physical substance) -Other assets |
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Liabiltis |
1) Current Liabilities (must be paid for in one year) 2) Accounts payable (A/P) 3) Long-term liabilities (obligations due after one year) |
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Revenue |
An increase in corperations assets as a result of providing services or selling merchandise |
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Expense |
Use or consumption of corporations resources (Assets) or other entities resources generates and expense |
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Dividends |
Distribution of corporations resources to the owners, for personal use |
