Lo 2-1 Flashcards

1
Q

according to FASB and GAAP, revenue should be recognized when?

A

in the period the service is provided, regardless of whether cash has or has not been collected.

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2
Q

accrual accounting

A

recognizing revenue when it is earned and expenses when they are incurred, regardless of when the related cash is exchanged

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3
Q

accounts payable

A

amounts owed but not yet paid to suppliers who have provided goods or services to the business

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4
Q

accounts receivable

A

expected future cash receipts arising from permitting customers to buy now and pay later; typically relatively small balances due within a short period of time

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5
Q

accrued expenses

A

expenses that are recognized before cash is paid.

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6
Q

an example of accrued expenses is

A

accrued salaries expense

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7
Q

cash basis accounting

A

recognize and report revenues and expenses in the period in which cash is collected or paid

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8
Q

accrued accounting

A

recognizes or report revenues and expenses in the period in which they occur, regardless if cash is collected or paid

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9
Q

accrual

A

revenue or expense event that is recognized before cash is exchange

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