Exam #1 Flashcards
What is a Business or Economic Entity Assumption?
What is a Going Concern Assumption?
What is the Historical Cost Principle?
What is the Objectivity Principle?
Define Accrual Basis
Define the Revenue Recognition or Realization Principle
Define the Matching Principle
Define the Time period or Periodicity Assumption
An assumption that the economic life of a business can be divided into artificial time periods.–I think they’re not using accounting periods
What is an Accounting Period that is a year long called?
A Fiscal Year
Define Dividends
Define Assets
Define Liabilities
Define Stockerholder’s Equity
Define Prepaid Expenses
Define Accrued Revenue
Define Unearned Revenue
What is the order of preparation of the basic financial statements?
Income Statement -> Statement of Retained Earnings or Statement of Stockholder’s Equity -> Balance Sheet -> Statement of Cash Flows
Which elements of the financial statements does debit increase?What’s the way to memorize this?
DEAL; Dividends, Expenses, Assets, and Losses
Which elements of the financial statements does credit increase?What’s the way to memorize this?
GIRLS; Gains, Income, Revenue, Liabilities, and Stockholder’s Equity
What increases in Stockholder’s Equity? What’s a way to memorize this?
RING; Revenue, Net income, Issuance of stock, and Gain on disposition
What decreases in Stockholder’s Equity? What’s a way to memorize this?
END-L; Expense, Net loss, Dividends, and Loss of Disposition
What kind of closing entries can be made? What are their purposes?
What are the rules of double entry accounting as it relates to the increase balance of the elements of the financial statements?
What are the rules of double entry accounting as it relates to the decrease balance of the elements of the financial statements?
