module 1

Question 1

accouting equation

Answer 1

assets = liability + owners equity

Question 2

all transactions impact the accounting equation and it must always _____

Answer 2

balance

Question 3

most companies use the _____ method which means transactions are recorded in period to which they relate, regardless of when cash is exchanged

Answer 3

accrual

Question 4

resources owned/controlled by an entity that will produce benefits in the future

Answer 4

assets

Question 5

obligations to pay a 3rd party for resources provided to an entity

Answer 5

liabilities

Question 6

funds contributed by owners as well as profits generated by the business

Answer 6

owners equity

Question 7

the money that a business receives from providing goods or services to a customer

Answer 7

revenue

Question 8

costs assoicated w providing goods/services to a customer

Answer 8

expenses

Question 9

when company receives cash before a good has been delivered or a service has been provided

Answer 9

deferred revenue

Question 10

this principle recognize that there are some estimates involved in accounting and says accoutning should reflect the more cautious estimated valuation rather than optimistic one

Answer 10

conservatism

Question 11

refers to fact that transactions are recorded at cost that existed at time transaction occured

Answer 11

historical cost

Question 12

requires that the methods be consistently applied by co. over time in recording and reporting

Answer 12

consistency

Question 13

refers to fact business is seperate identifiable entity, the accounts of a business should be seperate/distinct from accounts of owner

Answer 13

entity concept

Question 14

refers to fact that only values can be measured in moneterary terms should be recorded

Answer 14

money measurement principle

Question 15

a co is considered to be a ____ _____ if the entity is expected to remain in operation

Answer 15

going concern