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