Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
ACCT 200 assumptions
Identify the accounting assumption, principle or constraint
| Question | Answer |
|---|---|
| What is the rationale for why plant assets are not reported at liquidation value | The Going Concern Assumption |
| Indicates that personal and business record-keeping should be separately maintained | Economic entity assumption |
| Ensures that all relevant information is reported | Full Disclosure Principle |
| Assumes that the dollar is the "measuring stick" used to report on financial performance. | Monetary unit assumption |
| Requires that accounting standards be followed for all items of significant size. | Materiality |
| Requires recognition of expenses in the same period as related revenues | Expense recognition principle |
| Indicates that fair value changes subsequent to purchase are not recorded in the accounts | Historical Cost Principle |
| List three different types of business activities | Financing, Operating, Investing |
| Give an example of financing | Issuing Common Stock Paying Dividends Borrowing Money (Notes Payable, Bonds Payable, etc.) Repaying Loans |
| Give an example of Investing | Purchasing Equipment Purchasing land Selling investment securities selling a building |
| Give an example of Operating | Revenues: Sales of products or services Receipt of interest income Expenses: Payment of wages payment of selling expenses payment of interest expense |
| What are the four financial statements? | Income Statement Statement of Retained Earnings Balance Sheet Statement of Cash Flows |
| What is the purpose of an Income Statement and who are the primary users? | Represents revenues an expenses for a period of time |
| What is the purpose of a Statement of Retained Earning's and who are the primary users | Shows the amounts and causes of changes in retained earning during the period |
| What is the purpose of a Balance Sheet and who are the primary users? | Reports assets and claims at a specific point in time |
| What is the purpose of Statement of Cash Flows and who are their primary users? | Provides financial information about the cash receipts and cash payments of a business for a specific period of time |
| What is the accounting equation? | Assets= Liabilities + Stockholders' Equity |
| What does Debit mean? What does credit mean? | Debit means "on the left" and is abbreviated Dr. Credit mean "on the right" and is abbreviated Cr. |
Created by:
Cjaner
Popular Accounting sets