Exam 1 Vocab Flashcards
Information and measurement system that identifies, records, and communicates relevant information about a company’s business activities.
Accounting
Area of accounting aimed mainly at serving external users.
Financial Accounting
FASB
Financial accounting standard board
SEC
Security Exchange Commission
What are the four accounting principles?
Cost principle
REvenue recognition principle
matching principle
Full disclosure principle
Which Principle:
Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Cost principle
Which Principle:
Principle that prescribes financial statements (including notes) to report all relevant information about an entity’s operations and financial condition.
Full disclosure principle
Which Principle:
The principle prescribing that revenue is recognized when earned.
Revenue recognition Principle
Which Principle:
Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
Matching principle
Four Assumptions:
Going-concern
Monetary unit
time period
business entity
What Assumption:
principle that prescribes financial statements to reflect the assumption that the business will continue operating.
Going-concern
What Assumption:
Principle that requires a business to be accounted for separately from its owner and from any other entity.
Business entity
What Assumption:
Principle that assumes transactions and events can be epressed in money units.
Monetary Units
What Assumption:
Assumption that an organization’s activities can be divided into specific time periods such as months, quarters, or years.
time period
GAAP
Generally Acccepted Accounting Principle
