Exam 1 Financial Accounting Flashcards
Cost
Actual money paid
Partnership
Owned by 2 individuals or more
Liable to creditors
What does GAAP stand for
Generally Accepted Accounting Principles
What are the 2 Ethics of Accounting?
Relevant Information
Reliable Information
What is on the left side of a t account?
Debit
What 2 things does paid in capital consist of?
Common Stock
Retained Earnings
Retained Earnings =
Beginning Balance + Net Income or - Net Loss - Dividends = End Balance
Net Income
Revenue- Expenses = profit or loss
What are the 4 forms of business?
Proprietorship
Partnership
Corporation
Limited Liability
What are the 4 users of accounting?
Individuals
Investors / Creditors
Taxes
Non Profit
Going Concern
Continue indefinitely
Entity
Separate
What is the lengthier accounting equation?
Assets = Liabilities + Common Stock - Dividends - Revenue + Expenses
What is on the right side of the t account?
Credits
What 3 things are increased by credit? (LCR)
Liabilities
Common Stock
Revenue
Accounting Equation
Asset = Liability + Capital
What 3 things are increased by debits?(ADE)
Assets
Dividends
Expenses
What does FASB stand for?
Financial Accounting Standards Board
Reliability
Objective Evidence
Accounting System consists of which 4 things (MAPC)
Measuring activities
Accounting used to make decisions
Processes Data
Communicates Decisions
Asset
Something of value that has a future benieft
Limited Liability Company
Not liable
FASB states that accounting should be what 4 things?
Relevant
Reliable
Comparable
Consistent
Who was GAAP created by?
FASB
