Chapter One and Two Study Set Accounting I
Full Disclosure Principle
A company reports details behind financial statements that would impact users' decisions.
journal
A complete record of all transactions made by an organization is kept in a(n) ______.
chart
A list of all ledger accounts and identification numbers, not including account balances, is called a(n) ______ of accounts.
Rationalization
A person justifies fraud or does not see it's criminal nature.
opportunity
A person must be able to commit fraud with a low risk of getting caught.
pressure
A person must feel pressure, or incentive to have commit fraud.
source document
A(n) ______ , such as a bank statement, is objective evidence of transactions and their amounts.
opportunity
Identify the fraud triangle risk factor (Opportunity, pressure, or rationalization): Company computers are not password protected.
opportunity
Identify the fraud triangle risk factor (Opportunity, pressure, or rationalization): No one matches the cash in the register to receipts when shifts end.
Rationalization
Identify the fraud triangle risk factor (Opportunity, pressure, or rationalization): Payroll manager feels she is greatly underpaid.
opportunity
Identify the fraud triangle risk factor (Opportunity, pressure, or rationalization): The business has no cameras or security devices at its warehouse.
opportunity
Identify the fraud triangle risk factor (Opportunity, pressure, or rationalization): There is no supervision of employees handling inventory.
credit
Identify the normal balance (debit or credit) for each of the following accounts: Accounts Payable
Debit
Identify the normal balance (debit or credit) for each of the following accounts: Building
Debit
Identify the normal balance (debit or credit) for each of the following accounts: Cash
Debit
Identify the normal balance (debit or credit) for each of the following accounts: Factory
credit
Identify the normal balance (debit or credit) for each of the following accounts: Haircutting Revenue
Debit
Identify the normal balance (debit or credit) for each of the following accounts: Insurance Expense
Debit
Identify the normal balance (debit or credit) for each of the following accounts: Land
Debit
Identify the normal balance (debit or credit) for each of the following accounts: Office Supplies
credit
Identify the normal balance (debit or credit) for each of the following accounts: Rideshare Revenue
account
Increases and decreases in a specific asset, liability, equity, revenue, or expense are recorded in a(n) ______.
Income Statement
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Rent Expense
Income Statement
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Rental Revenue
Income Statement
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Repairs Expense
Income Statement
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Salaries Expense
Balance Sheet
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Salaries Payable
Income Statement
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Service Revenue
Balance Sheet
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Store Equipment
Balance Sheet
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Store Supplies
Balance Sheet
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Supplies
Income Statement
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Supplies Expense
Income Statement
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Taxes Expense
Balance Sheet
Indicate the financial statement on which each of the following items appears: income statement, statement of owner's equity, or balance sheet: Taxes Payable
credit
Indicate whether a debit or credit decreases the normal balance of each of the following accounts: Buildings
credit
Indicate whether a debit or credit decreases the normal balance of each of the following accounts: Cash
credit
Indicate whether a debit or credit decreases the normal balance of each of the following accounts: Notes Receivable
Debit
Indicate whether a debit or credit decreases the normal balance of each of the following accounts: Rent Payable
credit
Indicate whether a debit or credit decreases the normal balance of each of the following accounts: Supplies
Debit
Indicate whether a debit or credit decreases the normal balance of each of the following accounts: Unearned Ticket Revenue
Measurement Principle (Cost Principle)
Accounting information is based on actual cost. Actual cost is considered objective.
Proprietorship
Business owned by one person that is not organized as a corporation.
liability
Identify the following accounts as either an Asset, Liability, Equity, Revenue, or Expense Account: Salaries Payable
revenue
Identify the following accounts as either an Asset, Liability, Equity, Revenue, or Expense Account: Sales
expense
Identify the following accounts as either an Asset, Liability, Equity, Revenue, or Expense Account: Selling Expense
revenue
Identify the following accounts as either an Asset, Liability, Equity, Revenue, or Expense Account: Services Revenue
asset
Identify the following accounts as either an Asset, Liability, Equity, Revenue, or Expense Account: Store Supplies
liability
Identify the following accounts as either an Asset, Liability, Equity, Revenue, or Expense Account: Unearned Revenue
expense
Identify the following accounts as either an Asset, Liability, Equity, Revenue, or Expense Account: Utilities Expense
expense
Identify the following accounts as either an Asset, Liability, Equity, Revenue, or Expense Account: Wages Expense
Rationalization
Identify the fraud triangle risk factor (Opportunity, pressure, or rationalization): A worker feels that fellow employees are not honest.
General Ledger
The ______ is a record containing all accounts used by a company, including account balances.
Revenue Recognition Principle
The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.
Generally Accepted Accounting Principles (GAAP)
What does GAAP stand for?
General Ledger
What is a record of all accounts and their balances?
Debit
What is the Natural Balance of Asset?
credit
What is the Natural Balance of Revenue?
Expense Recognition Principle
a company records the expenses it incurred to generate the revenue reported