Accounting

Account

A business's record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is known as a:

Overstate net income by $28,000.

A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:

Is the excess of revenues over expenses.

Net Income:

Depreciation Expense—Equipment

Permanent accounts include all of the following except:

Assets that represent prepayments of future expenses.

Prepaid accounts (also called prepaid expenses) are generally

Liabilities created when a customer pays in advance for products or services before the revenue is earned.

Unearned revenues are generally

Measurement (Cost) principle

The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the ca sh or cash-equivalent amount given in exchange, is the

Accrual basis accounting.

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:

Revenue recognition principle

The rule that (1) requires revenue to be recognized at the ti me it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any nonca sh assets received from customers in exchange for goods or services, is called the:

Reports on cash flows for operating, financing, and investing activities over a period of time

The statement of cash flows:

Expense recognition (Matching) principle.

Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?