management

Which user group is interested if a company will be able to pay for its purchases on time.

supplier

A purchase is recognized in the accounting records when

title transfers from the seller to the buyer.

The matching rule is applied

to help produce an accurate measurement of a company's performance.

Revenues are increases to a company's equity? T or F

true

The economic resources to which the owner has a claim are represented by equity. T or F

true

the professional organization for certified public accountants

American institute of certified public accountants

Expenses are increases to a company's equity? T of F

False

a statement that summarizes revenues and expenses for a period of time

Income statement

a future economic benefit

asset

the process of examining the financial statement and the records of company to rendor an opinion

auditing

the financial statement that summarizes the assets, liabilities, owners equity and a specifictime`

balance sheet

all activities necesary to provide the members of an economic system with goods and services

business

an organization operated to earn a profit

business entity

indicates the owners contributions to a corporation

capital stock

When a business correctly records its expenses and assets, it has correctly addressed the measurement issue of

classification.

What are the two distinct elements of owner's equity in a corporation?

contributed capital + retained earnings

Which form of business is organized under the laws of a particular state and ownership evidenced by shares of stock?

corporation

a form of entity organized under the laws of a particular state, ownership evidenced by share of stock

corporation

Assets are recorded and reported at the cost to acquire them. What term describes this accounting concept?

cost principle

How will you record an increase to the income tax payable account?

credit

Revenues, sales, shipments or fees earned are recorded by a

credit

To record a cash payment by a customer on an amount owed to the company will require a ________ to the company's account receivable account.

credit

someone to whom a company or person has debt

creditor

Those who lend money or deliver goods and services before being paid are called

creditors

A decrease to the unearned revenue liability account will be recorded as a

debit

a dividend to stockholders is recorded as

debit

expenses are recorded by a....

debit

The accounting equation is in balance if there is a

decrease in assets and an decrease in liabilities

The issue of deciding when to record a transaction is solved by

determining a point of recognition.

a distribution of the net income of a business to its stockholders

dividends

an outflow of assets resulting from the sale of goods and services

expense

A balance sheet of a company provides financial information for a particular period of time? T of F

false

securities and exchange commission

federal agency with authority to determine rules for preparing statements for companies whose stock is sold to the public

Which type of accounting has rules, principles and conventions?

financial accounting

branch of accounting involving communication with outsiders through financial statements

financial accounting

the group in private sector with authority to set accounting standards

financial accounting standards

fees earned is reflected on what financial statement

income statement

repair revenue" will be shown on the?

income statement

The accounting equation is in balance if there is a (an)

increase in assets and an increase in equity

The periodicity assumption recognizes that

it is useful to estimate the business's net income in terms of accounting periods.

an obligation of a business

liability

the excess of revenues over expenses

net income

the owners claims to the assets of an entity

owners equity

a business owned by 2 or more individuals

partnership

inflow of assets resulting from the sale of goods and services

revenue

certificate that acts as evidence of ownership in a corporation

share of stock

statement summarizes companys cash receipts & payments during period from operating, investing, and financial activities

statement of cashflows

Which statement summarizes the income earned and dividends paid over the life of a business?

statement of retained earnings

statement that summarizes the income earned and dividends paid over the life of a business

statement of retained earnings

one of the owners of a corporation

stockholder

Business transactions require an economic event measured in money. T or F

True

The normal balance is the side (debit or credit) that increases the account. T or F

True

Which of the following is an example of an accrual?

Wages expense incurred but not yet paid

the owners equity of a corporation

stockholders equity