Chapter 1 - Intro Flashcards
What is generally Accepted Accounting principles
Standardized, format of accounting business financial transactions
When is Revenue Recognized
Once transaction is completed
How does the matching concept more accurately determine the net income of a business
Note sure
What are the qualities that accounting information is expected to have? What are the limitation on the disclosure of useful accounting information?
Detail? - Limitation from possible vague classification of a particular line item in the balance sheet
What are assets
Something of value
To what terms liability and equity refer
value
Identify the 3 forms of business organization
Priopriotorship, Partnership, Corporation
What is the general purpose of financial statement? Name 4 financial statements
Balance Sheet, Statemetnt of Cash flow
What is the business entity concept of accounting? Why is it important?
Value
What is the general purpose of financial statements? Name the four financial statements
Value
Each financial statement has a title that consists of the name of the financial statement, the name of the business, and a date line. How is the date line on each of the four financial statements the same or different?
Value
What is the purpose of an income statement? A balance sheet? How are they related?
Value
Define the terms revenue and expense
Value
What is net income? What information does it convey?
Value
What is the purpose of a statement of changes in equity? A statement of cash flows?
Value
What are the three primary components of the balance sheet?
Value
Why are financial statements prepared at regular intervals? Who are the users of these statements?
Value
What is the accounting equation?
Value
Explain double-entry accounting.
Value
What is a year-end? How does the timing of year-end financial statements differ from that of interim financial statements?
Value
How does a fiscal year differ from a calendar year?
Value
What are the three primary components of the balance sheet?
Value
What is the difference between internal and external users of accounting information?
Value
What is the difference between managerial and financial accounting?
Value
