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Scaly's Study > FABM Chapter 5 Reveiw > Flashcards

FABM Chapter 5 Reveiw Flashcards

1
Q

What are the elements of financial statements?

A

1) Income
2) Expense
3) Liability
4) Assets
5) Equity

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2
Q

These are the building blocks of financial statements

A

Elements of Financial Statements

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3
Q

Two Classifications of Financial Elements

A

1) Elements of Financial Position
2) Elements of Financial Performance

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4
Q

What are the Three Elements of Financial Position

A

1) Liability
2) Assets
3) Equity

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5
Q

These are the elements, that are presented in the balance sheet or statement of financial _______________.

A

Elements of Financial Position

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6
Q

Two Elements of Financial Performance

A

1) Income
2) Expense

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7
Q

These are the elements presented in the income statement.

A

Elements of Financial Performance

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8
Q

These are the elements that asseses profitability

A

Elements of Financial Performance

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9
Q

Is the process of incorporating in the balance sheet or income statement an item that meets the definition of an element of financial statements?

A

Recognition

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10
Q

Recognition is also called what?

A

Recording

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11
Q

Is the removal of an element in the financial statement when it ceases to be an element.

A

Derecognition

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12
Q

Remember that when an element is recognized, it gives rise to the recognition of another element.

A

The Duality Principle

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13
Q

Makes use of a double-entry system.

A

Contemporary Accounting

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14
Q

Under the double-entry system, changes in two elements are recorded every time a

A

A transaction is recorded

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15
Q

Are the words of the accounting language?

A

Elements

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16
Q

Is a resource controlled by the business as a result of past transactions and events and from which future economic benefits are expected to flow to the business.

A

An Asset

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17
Q

How are assets recognized?

A

When it is probable in the future that “Economic Benefits” will flow to the business and the asset has a cost or value that can be measured reliably.

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17
Q

Assets are resources ______ by the enterprise

A

Controlled

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18
Q

Assets are resources controlled by the ______

A

Enterprise

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19
Q

Assets are results of what?

A

Past Transactions or Events

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20
Q

Events is short for what?

A

Past Transactions

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21
Q

Assets are expected to provide what?

A

Future Economic Benefits

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22
Q

Assets have _____ that can be measured reliably

A

Cost or Value

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23
Q

________ are resources, tangible, or intangible, which are controlled by the ________

A

Assets, Business Enterprise

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24
Q

Control over a resource is usually evidenced by what?

A

Ownership or Contractual Right

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25
Q

Are properties owned by the business

A

Assets

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26
Q

Means physically seen and touchable

A

Tangible

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27
Q

Assets are ___ amd existing resources which are acquired by the enterprise through what?

A

Past Events

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28
Q

Are resources that provide future economic benefits to the enterprise

A

Assets

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29
Q

Assets can be used, consumed, or sold in the business operation to provide income or to sustain the business such as inventory, supplies, building land, machineries and equipment.

A

Utility

30
Q

The purchase of something that accrues or produces income for the enterprise is an asset.

A

Accrual or Production of income

31
Q

A property that is no usable, consumable. saleable or capable of producing income for the enterprise but is convertible to another type of asset that do so is also and asset.

A

Convertibility into another form of asset

32
Q

Is receivables an asset?

A

Yes

33
Q

When expenses are paid in advance, they will no longer be paid in the future.

A

Avoidance of future outflows of resources

34
Q

Payments for something that as no future benefit to the enterprise beyond the current accounting period are not assets but are____________

A

Expenses

35
Q

Assets have value that is _______

A

Quantifiable

36
Q

Normally, enterprises value assets at the monetary equivalent of consideration given in exchange. This is called ________

A

Acquisition cost or simply cost

37
Q

An Income Earned

A

Increase in asset and increase in income

38
Q

A liability Borrowed

A

Increase in asset and increase in liability

39
Q

An asset received in exchange for another asset

A

Increase in asset and decrease in asset

40
Q

A payment of expense

A

Decrease in asset and increase in expense

41
Q

A payment of liability

A

Decrease in asset and decrease in liability

42
Q

A returns of capital to the business owner

A

Decrease in asset and decrease in capital

43
Q

Is a present debt of the business arising from a past events, the settle meant of which is expected to result in an outflow of assets from the business

A

Liability

44
Q

A liability is a present ________

A

Obligation

45
Q

A liability recquired a future _______ of resources

A

Outflow

46
Q

Liability arises from what?

A

Past Events

47
Q

Borrowing something that isn’t consumable and must be returned does not

A

Transfer ownership

48
Q

Consumables borrowed does

A

Transfer Ownership to the borrower

49
Q

It is the residual interest of the owner/owners of the enterprise in the assets of the enterprise, after deducting all its liabilities from it’s assets.

A

Equity

50
Q

Is an increase in an asset or a decrease in liability that results in an increase of equity other than the contribution from owner/s of the enterprise.

A

Income

51
Q

Income is an increase in _____

A

Equity

52
Q

Income is an increase in equity resulting from:

A

Increase in asset and a decrease in liability.

53
Q

Is an increase in wealth that arises from transactions with customers or clients

A

Income

54
Q

From the sale of goods or services in the normal course of business

A

Revenue

55
Q

From secondary sources such as interest or dividends received from investments

A

Other Income

56
Q

From selling assets of the business other than goods that re normally held for sale

A

Gains

57
Q

Means income earned in the normal course of operations

A

Revenue

58
Q

From the sales of goods held for sale

A

Sales revenue or simply sales

59
Q

From sales of service

A

Service Revenue or simply fees

60
Q

Arises from the sales of goods, not usually intended to be for sale by the business.

A

Gains

61
Q

Are decrease in assets in the form of outflow or depletion of assets or recurrences of liabilities that results in decrease in equity, other than those relating to returns of capital or income to owner/s of the enterprise

A

Expense

62
Q

Are generally the cost of generating income for the business or cost of maintaining or sustaining the business; hence, they are deducted against income.

A

Expense

63
Q

Decrease in capital arising from transactions with the business owner/s are not ____ and are _____

A

Expenses, Capital Withdrawals

64
Q

A payment or an obligation to pay during the period for something that has no future economic benefits.

A

Period Expenditure

65
Q

An expiration of an asset caused by usage or passage of time

A

Depletion of Assets

66
Q

A value lost without consideration received

A

Loss

67
Q

When Assets depletes they are derecognized and are recognized as what?

A

Expenses

68
Q

Resources that decrease in value when they lose their condition in the long run and can even be destroyed is called what?

A

Depreciation of properties

69
Q

Things paid in advance will eventually expire/

A

Expiration of prepaid expenses

70
Q

Assets that are not consumable and don’t depreciate or even expire.

A

Non-Expiring Assets

71
Q

Collectible from customers, clients or other parties

A

Receivables

72
Q

a liability or equity instruments of a corporation which the enterprise purchased to earn interest, dividend or appreciation in market value

A

Investments

Scaly's Study (43 decks)

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