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Accounting 1 (rated 100% correct).
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Accounting 1 (rated 100% correct).
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Accounting 1 (rated 100% correct).Account ANS - Record within an accounting system in which increases and decreases are entered and
stored in a specific asset, liability, equity, revenue or expense
Assets ANS - Resources that are owned by the entity
Auditors ANS - Individuals hired to review financial reports and information systems.
Audit ANS - Analysis and report of an organization's accounting system, its records, and its reports using
various tests
Balance Sheet ANS - Financial statement that lists types and dollar amounts of assets, liabilities, and
equity at a specific date
Liabilities ANS - Debts owned by creditors
Equity ANS - Owner's claim on the assets of a business; equals the residual interest in an entity's assets
after deducting liabilities
-paid in capital
-retained earnings
Business Entity Assumption ANS - Principle that requires a business to be accounted for separately from
its owner(s) and from any other entity.
Common Stock ANS - Corporation's basic ownership share; also generically called capital stock.
Corporation ANS - Business that is a separate legal entity under state or federal laws with owners called
shareholders or stockholders
, Cost-Benefit Constraint ANS - The notion that the benefit of a disclosure exceeds the cost of that
disclosure
Cost Principle ANS - Accounting principle that prescribes financial statement information to be based on
actual costs incurred in business transactions
Dividends ANS - Corporations distributions of assets to its owners
Expanded Accounting Equation ANS - Assets = Liabilities + Equity
Expense Recognition Principle ANS - Prescribes expenses to be reported in the same period as the
revenues that were earned as a result of the expense
Expenses ANS - Outflows or using up assets as part of operations of a business to generate sales
Full Disclosure Principle ANS - Principle that prescribes financial statements (including notes) to report
all relevant information about an entity's operations and financial condition.
Generally Accepted Accounting Principles ANS - Rules that specify acceptable accounting practices
Going-Concern Assumption ANS - Principle that prescribes financial statements to reflect the
assumption that the business will continue operating
Income/Net Income ANS - Amount earned after subtracting all expenses necessary for and matched
with the sales period
Income Statement ANS - Financial statement that subtracts expenses from revenues to yield a net
income or loss over a specified period of time
Materiality Constraint ANS - Prescribes that accounting for items that significantly impact financial
statement and any inferences from them adhere strictly to GAAP
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