Principles Of Accouting

Front 1

Accounts Payable

Back 1

Current Liability-Credit

Front 2

Accounts Receivable

Back 2

Current Asset- Debit

Front 3

Accumulated Depreciation

Back 3

Contra Fixed Asset-Credit

Front 4

Accumulated Depletion

Back 4

Contra Fixed Asset- Credit

Front 5

Allowance for Doubtful Accounts

Back 5

Contra Current Asset- Credit

Front 6

______, Capital

Back 6

Owners Equity-Credit

Front 7

_____, Drawing

Back 7

Contra capital- Debit

Front 8

Cash

Back 8

Current Asset- Debit

Front 9

Cost of Goods Sold

Back 9

Cost of Goods Sold- Debit

Front 10

Depletion Expense

Back 10

Operating Expense- Debit

Front 11

Equipment

Back 11

Fixed Asset- Debit

Front 12

Goodwill

Back 12

Intangible Asset- Debit

Front 13

Insurance Expense

Back 13

Operating Expense- Debit

Front 14

Interest Expense

Back 14

Other Expenses- Debit

Front 15

Interest Receivable

Back 15

Current Asset- Debit

Front 16

Interest Revenue

Back 16

Other Income- Credit

Front 17

Land

Back 17

Fixed Asset- Debit

Front 18

Merchandise Inventory

Back 18

Current Asset- Debit

Front 19

Notes Payable

Back 19

Current Liability- credit

Front 20

Notes Receivable

Back 20

Current Receivable- Debit

Front 21

Patents

Back 21

Intangible Asset- Debit

Front 22

Prepaid Insurance

Back 22

Current Asset- Debit

Front 23

Prepaid Rent

Back 23

Current Asset- Debit

Front 24

Rent Expense

Back 24

Operating Expense- Debit

Front 25

Rent Revenue

Back 25

Other Income- Credit

Front 26

Salaries Expense

Back 26

Operating Expense- Debit

Front 27

Salaries Payable

Back 27

Current Liability- Credit

Front 28

Sales

Back 28

Revenue of Sales- Credit

Front 29

Sales Discount

Back 29

Revenue from Sales- Credit

Front 30

Sales Discount

Back 30

Revenue from sales- Debit

Front 31

Sales Returns and Allowances

Back 31

Revenue from sales- Debit

Front 32

Supplies

Back 32

Current Asset- Debit

Front 33

Supplies Expense

Back 33

Operating Expense- Debit

Front 34

Transportation out

Back 34

Operating Expense- Debit

Front 35

Un collectable Accounts Expense

Back 35

Operating Expense- Debit

Front 36

Unearned Rent

Back 36

Current Liability- Credit

Front 37

Utilities Expense

Back 37

Operating Expense- Debit

Front 38

Busines Entity Concept

Back 38

A business is accounted for seperate and distinct its owners.

Front 39

Going Concern Concept

Back 39

A business is expected to remain in operation for an ongoing period of time.

Front 40

Objectivity

Back 40

Whenever possible, accounting records and information reported on the financial statements should be based on objective, verifiable evidence.

Front 41

Historical Cost Principle

Back 41

Record on asset for the exchange price

Front 42

Unit of Measurement

Back 42

In the US the medium of exchange is the dollar; therefore all business transactions are recorded in terms of dollars in the US.

Front 43

Stable Dollar Concept

Back 43

We do not adjust the amounts on the financial statements for inflation or changes in the value of the dollar.

Front 44

Accounting Period

Back 44

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.

Front 45

Matching

Back 45

Revenues are recorded in the accounting period in which they are earned. Expenses are properly mateched to the related revenues on the following bases.

Front 46

Revenue Recognition Principle

Back 46

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.

Front 47

Adequate Disclosure

Back 47

All relevant information important to the user's understanding of the financial statements should be included with the statements.

Front 48

Consistency

Back 48

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.

Front 49

Materiality

Back 49

This is a modifying assumption. If an item is considered insignificant, then it may be accounted for in the easiest manner.

Front 50

Conservatism

Back 50

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.

Front 51

Essential Qualities of Financial Information

Back 51

These qualities include usefulness, understandability, relevance, reliability, verifiability, timeliness, neutrality, completeness, and comparability.