Definitions

Question 1

What is the Matching Principle?

Answer 1

Has to do with the timing of expenses and seeks to record expenses in the period in which those costs of doing business contribute to the production of revenues, not necessarily when those costs are paid in cash.

Question 2

What are internal Controls?

Answer 2

Policies and procedures implemented by a business that are designed to safeguard assets and ensure accurate accounting records.

Question 3

What is a long term asset?

Answer 3

Property, Plant, equipment, intangible assets or natural resources with an expected future benefit in excess of one year.

Question 4

Amortization Expense relates to ..

Answer 4

intangible assets.

Question 5

Intangible Assets

Answer 5

rights, franchise rights, copy rights, pattens or goodwill that have future benefits

Question 6

What is GoodWill

Answer 6

Exists only if the business of worth more than the value of its assets.

Question 7

Explain Natural resources as an asset

Answer 7

Oil Rights, Water wells.

Natural Resources are depleted over their productive life.