Module 1 Flashcards
1
Q
What transactions will always effect Owners Equity?
A
Owners Contribution, Owners Withdraws, Revenue and Expense
2
Q
What are Assets?
A
They are resources expected to generate future revenue
3
Q
When is revenue recognized
A
When goods or services are provided, not when cash is received.
4
Q
What is the Cost benefit Assumption?
A
The benefits of accounting efforts must outweigh associated costs
5
Q
What is an Unadjusted Balance Sheet?
A
It is when costs and revenues have not been matched for a period
6
Q
What do Owners Withdraw effect?
A
They reduce Owners Equity and do not represent expense or change income statement amounts.
