Accounting

Front 1

Historical Cost Assumption

Back 1

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.

Hint 1

Historical

Front 2

The _____ provides that ____ which are incurred during a particular period to be matched against the ____ which are earned during the period.

Back 2

Matching concept, expenses, revenues.

Hint 2

match

Front 3

Financial Accounting is primarily concerned with:

Back 3

external users

Hint 3

outside

Front 4

The concept of the ____ basis of accounting reflects the point that revenues are recorded as they are earned, not as cash is recieved.

Back 4

Accrual

Hint 4

Accounts Recievable

Front 5

Relevence

Back 5

All the information that could help make a decision must be included.

Hint 5

relevant

Front 6

Reliability

Back 6

Free from bias

Hint 6

Bringing someone in as a reliable source.

Front 7

Conservatism

Back 7

Small amounts don't have to be depreciated.

Hint 7

stapler

Front 8

Comparability

Back 8

using the same tax method year after year.

Hint 8

comparing from year to year

Front 9

qualitative

Back 9

doesn't deal with dollars.

Front 10

Under the accrual basis of accounting:

Back 10

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.

Hint 10

earned, but not paid.

Front 11

Liquidity

Back 11

The usual ordering of the asset classifications on the balance sheet.

Front 12

Liability accounts

Back 12

notes payable, unearned revenues, and interest payable

Front 13

The source of a firm's assets are from:

Back 13

It;s liabilities and owners equity

Front 14

Rental Revenue

Back 14

Does not normally show up on the balance sheet.

Front 15

Unearned Revenues

Back 15

recieved and recorded as liabilities before they are earned.

Front 16

Accrued Revenue

Back 16

Earned, but not recieved

Front 17

Depreciation

Back 17

allocating the cost of an asset to expense over its useful life ina rational and systematic manner.

Front 18

Stockholders Equity is not affected by:

Back 18

Supplies bought with cash

Front 19

We value and record assets based on the ___ concept.

Back 19

Historical Value

Front 20

A chart of accounts for a business firm:

Back 20

lists the accounts a firm may use the accounting system.

Front 21

The financial position of a firm a a particular point in time is reflected in the:

Back 21

balance sheet

Front 22

Balance Sheet

Back 22

reports the assets, liabilities, and stockholders equity at a specific time.

Front 23

Furniture and Fixtures are in which type of account?

Back 23

Asset

Front 24

_____ are assets which are aquired and or produced for sale in the continuing opertaions of a business

Back 24

Inventories

Front 25

The account prepaid income taxes is properly classified as:

Back 25

an asset account

Front 26

accrued expense

Back 26

an expense that has been incurred but not yet paid.