accounting Flashcards
1
Q
the purpose of accounting
A
to provide infornmation for decision making
2
Q
the order in which assets can be converted to cash
A
liquidity order
3
Q
each buisness is considered a seperate unit or entity and the financial data for the buisness must be kept seperate from the owners personal financial data
A
buisness entity principle
4
Q
assets must be shown on a balance sheet using there acquisition or construction
A
cost principle
5
Q
the date when liabilities are due to be paid
A
maturity date
6
Q
audit
A
a process of giving a thorough checkup to a companys financial records
7
Q
compound entry
A
