Financial Accounting
Large corporations must follow the __________ basis of accounting.
Accrual
Corporations whose stock is publicly traded must have their financial statements __________ by independent certified public accountants.
Audited
The non-government organization that researches and develops new accounting standards is the __________.
FASB
Every transaction will have one account being credited and one account being __________.
Debited
__________ entry bookkeeping will result in at least two accounts being involved in every transaction.
Double
The statement of cash flows explains the changes in cash and cash __________ during the specified time interval.
Equivalents
Financial accounting is focused on the __________ financial statements of a company.
External
Financial statements report the fair market value of a company.
False
FASB is the acronym for __________.
Financial Accounting Standards Board
The acronym for the common rules and standards that companies must follow when preparing its external financial statements is __________.
GAAP
GAAP is the acronym for __________.
Generally Accepted Accounting Principles
The profitability of a company for a specified period of time is reported on the __________ statement.
Income
The accounting equation is Assets = __________ + Stockholders' (or Owner's) Equity.
Liabilities
The first section of the statement of cash flows is the __________ activities.
Operating
The word "__________" is often in the title of liability accounts.
Payable
The main components or elements of the income statement are __________, expenses, gains, and losses.
Revenues
The U.S. government agency with authority over the financial reporting requirements of publicly traded corporations is the __________.
SEC
SEC is the acronym for __________.
Securities and Exchange Commission
Prepaid insurance is reported as an __________ on a company's balance sheet.
asset
Matching, cost, and full disclosure are examples of the fundamental or basic accounting __________.
principles