Part 2 Flashcards
Cash is a ____ and goes up with a ___.
asset;debit
Accounts Receivable is a ___ and goes up with a ___.
asset;debit
Notes Receivable is a ___ and goes up with a ___.
asset;debit
Interest Receivable is a ___ and goes up with a ___.
asset;debit
Inventory is a ___ and goes up with a ___.
asset;debit
Investments is a ___ and goes up with a ___.
asset;debit
Fixed Assets is a ___ and goes up with a ___.
asset;debit
Property, Plant, & Equipment (P,P,&E) is a ___ and goes up with a ___.
asset;debit
Prepaid Insurance is a ___ and increases with a ___.
asset;debit
Prepaid Rent is a ___ and increases with a ___.
asset;debit
Other Prepaid Expenses is a ___ and increases with a ___.
asset;debit
Goodwill is a ___ and increases with a ___.
asset;debit
Other Intangible Assets is a ___ and increases with a ___.
asset;debit
Deferred Tax Asset is a ___ and increases with a ___.
asset;debit
Accounts Payable is a ___ and increases with a ___.
liability;credit
Interest Payable is a ___ and increases with a ___.
liability;credit
Notes Payable is a ___ and increases with a ___.
liability;credit
Current Portion of Notes Payable is a ___ and increases with a ___.
liability;credit
Wages Payable is a ___ and increases with a ___.
liability;credit
Taxes Payable is a ___ and increases with a ___.
liability;credit
Accrued Interest is a ___ and increases with a ___.
liability;credit
Accrued Wages is a ___ and increases with a ___.
liability;credit
Accrued Taxes is a ___ and increases with a ___.
liability;credit
Deferred Revenue is a ___ and increases with a ___.
liability;credit
Short Term Debt is a ___ and increases with a ___.
liability;credit
Long Term Debt is a ___ and increases with a ___.
liability;credit
Deferred Tax Liability is a ___ and increases with a ___.
liability;credit
Other Liabilities is a ___ and increases with a ___.
liability;credit
Common Stock is a ___ and increases with a ___.
Owners’ equity;credit
Capital Stock is a ___ and increases with a ___.
Owners’ equity;credit
Additional Paid-In Capital is a ___ and increases with a ___.
Owners’ equity;credit
Preferred Stock is a ___ and increases with a ___.
Owners’ equity;credit
Treasury Stock is a ___ and increases with a ___.
Owners’ equity;credit
Retained Earnings is a ___ and increases with a ___.
Owners’ equity;credit
Sales is a ___ and increases with a ___.
Revenues account part of owners’ equity;credit
Sales Revenue is a ___ and increases with a ___.
Revenues account part of owners’ equity;credit
Interest Revenue is a ___ and increases with a ___.
Revenues account part of owners’ equity;credit
Rent Revenue is a ___ and increases with a ___.
Revenues account part of owners’ equity;credit
Miscellaneous Revenue is a ___ and increases with a ___.
Revenues account part of owners’ equity;credit
Other Revenue is a ___ and increases with a ___.
Revenues account part of owners’ equity;credit
Cost of Goods Sold is a ___ and increases with a ___.
expense account part of owners’ equity;debit
Interest Expense is a ___ and increases with a ___.
expense account part of owners’ equity;debit
Rent expense is a ___ and increases with a ___.
expense account part of owners’ equity;debit
Office Supplies Expense is a ___ and increases with a ___.
expense account part of owners’ equity;debit
Travel Expense is a ___ and increases with a ___.
expense account part of owners’ equity;debit
Research & Development (R&D) Expense is a ___ and increases with a ___.
expense account part of owners’ equity;debit
Depreciation Expense is a ___ and increases with a ___.
expense account part of owners’ equity;debit
Other Expenses is a ___ and increases with a ___.
expense account part of owners’ equity;debit
This principle recognizes that there are some estimates involved in accounting and says that accounting should reflect the more cautious estimated valuation rather than the more optimistic one. For assets it means recording the lower valuation while for liabilities it means recording the higher possible valuation. For revenues and gains it means recording them when they are reasonably certain but for expenses and losses it means recording them when they are reasonably possible.
Conservatism
Something is considered to be ___ if it is reasonably likely to impact the decision-making of those who are using the accounting data or financial reports. Businesses are only required to do detailed record-keeping and reporting for items that are ___. What principle is this?
material;material;Materiality
___ means that the information is useful and capable of influencing the decision of the users of the financial statements.
Relevance
___ means that the information faithfully represents the underlying economics. The three dimensions of reliability are validity, verifiability, and unbiasedness.
Reliability
The ___ refers to the fact that a business is a separately identifiable entity. Thus, the accounts of a business should be separate and distinct from the accounts of the owners and managers of the business. In addition, financial records should be kept and reported for each separate entity, especially in the case of multi-national companies and large companies with subsidiaries.
entity concept
The ___ principle refers to the fact that transactions are recorded at the cost that existed at the time the transaction occurred. In the case of assets, it means that their value in the financial records is shown at historical cost, rather than current market value.
historical cost
A company is considered to be a ___ if the entity is expected to remain in operation and be able to satisfy all commitments and obligations and realize the benefits and values of all assets for the indefinite future. If there is evidence to the contrary, the business may no longer be considered a ___.
going concern;going concern
One of the principles behind Accrual Accounting which states that expenses should be recognized in the same period in which the related revenue is recognized rather than when the related cash is paid.
Matching Principle
Although accounting guidelines allow some degree of discretion in how transactions are recorded, the ___ principle requires that the methods be consistently applied by the company over time in recording and reporting unless there is a sound reason to change them.
consistency
An amount is ___ when the cash (or claim to cash) is received, and an amount is ___ when receipt of payment (or claim to cash) is reasonably certain.
realized;realizable
A company would debit Cash to reflect an increase in Cash when? Name two scenarios.
Cash is received;Money is borrowed;
