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51 Cards in this Set

  • Front
  • Back
Accounts Payable
Current Liability-Credit
Accounts Receivable
Current Asset- Debit
Accumulated Depreciation
Contra Fixed Asset-Credit
Accumulated Depletion
Contra Fixed Asset- Credit
Allowance for Doubtful Accounts
Contra Current Asset- Credit
______, Capital
Owners Equity-Credit
_____, Drawing
Contra capital- Debit
Cash
Current Asset- Debit
Cost of Goods Sold
Cost of Goods Sold- Debit
Depletion Expense
Operating Expense- Debit
Equipment
Fixed Asset- Debit
Goodwill
Intangible Asset- Debit
Insurance Expense
Operating Expense- Debit
Interest Expense
Other Expenses- Debit
Interest Receivable
Current Asset- Debit
Interest Revenue
Other Income- Credit
Land
Fixed Asset- Debit
Merchandise Inventory
Current Asset- Debit
Notes Payable
Current Liability- credit
Notes Receivable
Current Receivable- Debit
Patents
Intangible Asset- Debit
Prepaid Insurance
Current Asset- Debit
Prepaid Rent
Current Asset- Debit
Rent Expense
Operating Expense- Debit
Rent Revenue
Other Income- Credit
Salaries Expense
Operating Expense- Debit
Salaries Payable
Current Liability- Credit
Sales
Revenue of Sales- Credit
Sales Discount
Revenue from Sales- Credit
Sales Discount
Revenue from sales- Debit
Sales Returns and Allowances
Revenue from sales- Debit
Supplies
Current Asset- Debit
Supplies Expense
Operating Expense- Debit
Transportation out
Operating Expense- Debit
Un collectable Accounts Expense
Operating Expense- Debit
Unearned Rent
Current Liability- Credit
Utilities Expense
Operating Expense- Debit
Busines Entity Concept
A business is accounted for seperate and distinct its owners.
Going Concern Concept
A business is expected to remain in operation for an ongoing period of time.
Objectivity
Whenever possible, accounting records and information reported on the financial statements should be based on objective, verifiable evidence.
Historical Cost Principle
Record on asset for the exchange price
Unit of Measurement
In the US the medium of exchange is the dollar; therefore all business transactions are recorded in terms of dollars in the US.
Stable Dollar Concept
We do not adjust the amounts on the financial statements for inflation or changes in the value of the dollar.
Accounting Period
Periodic reports are prepared on operations, financial position, and cash flows to enable the readers of this information to make informed decisions regarding the business.
Matching
Revenues are recorded in the accounting period in which they are earned. Expenses are properly mateched to the related revenues on the following bases.
Revenue Recognition Principle
Revenue is recorded when the eaernings process is complete. Revenue is the amount of assets received when rendering services to customers or selling merchandise to them.
Adequate Disclosure
All relevant information important to the user's understanding of the financial statements should be included with the statements.
Consistency
Financial Statements should be prepared using the same principles and methods from year- to- year to aid in comparability of the company's financial statements from year- to- year.
Materiality
This is a modifying assumption. If an item is considered insignificant, then it may be accounted for in the easiest manner.
Conservatism
When one is otherwise indifferent between alternative accounting principles or methods, the method selected would be the one least likely to overstate assets and least likely to overstate net income.
Essential Qualities of Financial Information
These qualities include usefulness, understandability, relevance, reliability, verifiability, timeliness, neutrality, completeness, and comparability.