Chapter 3 Flashcards
1
Q
Cash basis accounting
note: does not follow accounting standards
A
record entire transaction once dinero comes through
2
Q
time period concept
A
regular interval of reporting
3
Q
Revenue recognition principle
A
significant risk transferred
4
Q
When to record revenue
A
Right after it has been earned
5
Q
Matching Concept
A
expenses + rev same period
6
Q
Deferral vs Accrual
A
Deferral - cash in advance
Depreciation
Accrual - cash later
7
Q
3, Closing the books, these 3 must equal 0
A
Revenue
Cost
Dividend
8
Q
Principle related to when to record transaction when accrual based
A
The Revenue Recognition Principle
