Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
37 Cards in this Set
- Front
- Back
Matching Principle |
Record expenses in the period related revenue is in |
|
Periodicity |
The life of an enterprise can be divided into artificial time periods |
|
Historical Cost Principle |
The original transaction value upon acquisition |
|
Materiality |
Concerns the relative size of an item and its effect on decisions |
|
Realization Principle |
Criteria usually satisfied at point of sale |
|
Going concern assumption |
The entity will continue indefinitely |
|
Monetary Unit Assumption |
A common denominator is the dollar |
|
Economic Entity Assumpion |
The enterprise is seperate from its owners and other entities |
|
Full-Disclosure principle |
All information that could affect future decisions must be disclosed |
|
Predictive Value |
Information is useful in predicing the future
|
|
Relevance |
Pertinent to the decision at hand |
|
Timeliness |
Information is available prior to the decision
|
|
Distribution to owners |
Decreases in equity resulting from transfers to owners |
|
Confirmatory Value |
Information confirms expectations |
|
Understandability |
Users understand the information in the context of the decision being made |
|
Gain |
Results in an asset is sold for more than its book value |
|
Faithful representation |
agreement between a measure and the phenomenon it purports to represent |
|
Comprehensive Income |
The change in equity from nonowner transactions |
|
Comparability |
Important for making interim comparisions |
|
Neutrality |
The absense of bias |
|
Recognition |
the process of admitting information into financial statements |
|
Consistency |
applying the same accounting practices over time |
|
Cost effectiveness |
Requires consideration of the costs and value of information |
|
Verifiability |
Implies consensus amoung different measurers. I |
|
Intanglible assets are usually reported in the balance sheet as current assets |
FALSE (LONGTERM)
|
|
Liability |
Obligation to tranfer cash or other resources as a result of a past transactions
|
|
Distribution to Owners |
Dividends paid by a corporation to its shareholders |
|
Revenue |
Inflow of an asset from providing a good or service |
|
Assets, Liabilities, and Equity |
The financial position of a company |
|
Comprehensive Income |
Increase in equity during a period from nonowner transactions |
|
Gain |
Increase in equity from peripherial or indicidental transactions |
|
LOss |
Sale of an asset used in the operations of a business for less than the asset's book value.
|
|
Equity |
The owner's residual interest in the assets of a company
|
|
Asset |
An item owned by the company representing probable future benefits |
|
Net Income |
Revenues plus gains less expenses and losses
|
|
Investments by Owner |
An owner's contribution of cash to a corporation for ownership shares of stock
|
|
Expense |
Outflow of an asset related to the production of revenue. |