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14 Cards in this Set
- Front
- Back
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Business activities that are accountable |
TRANSACTIONS OR ECONOMIC ACTIVITIES |
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Economic events involving the enterprise and other entities. It may involve transfer of resources or obligation to or from the entities |
EXTERNAL TRANSACTION |
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Economic events in which only the enterprise participates |
INTERNAL TRANSACTIONS |
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Process by which resources are combined or transformed into products |
PRODUCTION |
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Sudden substantial, unanticipated reduction in enterprise resources not caused by other entities. Loses from fires, floods, and earthquakes |
CASUALTIES |
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Quantitative information reported in the statement of financial position and income statement |
ACCOUNTING ELEMENTS |
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Considered as the building blocks of the financial statements |
ELEMENTS |
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Elements directly related to the measurement of financial position |
ASSETS, LIABILITIES, EQUITY |
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Usefulness continues throughout the life of the business. Year end balances are forwarded |
REAL ACCOUNT |
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Elements directly related to the measurement of financial performance |
INCOME AND EXPENSES |
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•Temporary accounts • usefulness is only limited to the year when they are incurred |
NOMINAL ACCOUNTS |
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Is a right that has the potential to produce economic benefits |
ECONOMIC RESOURCE |
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The time during acquisition of assets for processing and their realization in cash or cash equivalents |
OPERATING CYCLE |
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Assets held by the enterprise for the accretion of wealth through capital distribution such as interest, royalties, dividends, rentals etc |
INVESTMENTS |
