Chapter 1 - Introduction to Accounting Solution Guide Graded A+.

accounting - correct answer The process of identifying, measuring, and communicating economic information to permit users to make informed judgments and decisions accounting systems - correct answer The branch of accounting that covers the review of a firm's entire information system, not just the accounting system accrual basis accounting - correct answer System of reporting revenues and expenses in the period in which they are considered to have been earned or incurred, regardless of the actual time of collection or payment adjusting entries - correct answer Entries required at the end of an accounting period to record internal adjustments of various accounts due to the matching principle of accounting assets - correct answer Resources available for use by the business - that is, anything owned by the business that has monetary value auditing - correct answer The branch of accounting that examines a firm's financial statements and internal controls for the purpose of expressing opinions regarding the financial statements balance sheet - correct answer Statement of the financial position of the hospitality establishment on a given date, giving the account balances for assets, liabilities, and ownership equity bookkeeping - correct answer The recording and classification of transactions business entity principle - correct answer An accounting principle that requires a business maintain its own set of records and accounts that are separate from other financial interests of its owners cash basis accounting - correct answer System of reporting revenues and expenses at the time they are collected or paid, respectively conservatism principle - correct answer An accounting principle that requires accounting procedures that recognize expenses as soon as possible, but delay the recognition of revenues until they are ensured consistency principle - correct answer An accounting principle that requires that once an accounting method has been adopted, it should be followed from period to period in the future unless a change in accounting methods is warranted and disclosed continuity of the business unit principle (going concern principle) - correct answer The assumption in preparing the accounting records and reports that the business will continue indefinitely and that liquidation is not a prospect corporation - correct answer A form of business organization that provides a separate legal entity apart from its owner or owners cost accounting - correct answer The branch of accounting dealing with the recording, classification, allocation, and reporting of current and prospective costs in order to aid operations personnel in controlling operations cost principle - correct answer An accounting principle that requires recording the value of transactions for accounting purposes at the actual transaction price double taxation - correct answer This occurs when both corporate profits and dividends paid to stockholders are taxed expenses - correct answer Costs incurred in providing the goods and services offered financial accounting - correct answer A branch of accounting dealing with recording, classifying, and summarizing transactions involving revenues, expenses, assets, and liabilities financial audit - correct answer An independent, external audit full disclosure principle - correct answer An accounting principle that requires that a business's financial statements provide information on all the significant facts that have a bearing on their interpretation fundamental accounting equation - correct answer The equation upon which all double-entry bookkeeping is based: Assets equal liabilities plus owners' equity general partner - correct answer The member(s) of a limited partnership who has (have) unlimited liability for the debts of the partnership income statement - correct answer A report on the profitability of operations, including revenues earned and expenses incurred in generating the revenues for the period of time covered by the statement liabilities - correct answer Claims to a business's assets by parties external to the business