Accounting

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Author:
StudyGirl212
ID:
142000
Filename:
Accounting
Updated:
2012-03-16 16:01:48
Tags:
ACCT200
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Description:
First year accounting course.
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  1. Depreciation
    The portion of useful life that is expiredof all capital assets.
  2. Prepaid Expenses
    The portion of current assets that have been used up or expired.
  3. Accured Revenues
    Revenues that has been done but not recorded and we have not recieved payment for.
  4. Accured Expenses
    Expenses that have occurred but were not recorded and that we have not paid for.
  5. Unearned Revenues
    The amount of previous unearned revenues that have now been earned in this peroid.
  6. Straight Line Depreciation Equation
    Cost of Asset - Estimate Salvage Value / Estimated Useful Life
  7. Matching Principle
    matches expenses in the same accounting peroid as the revenues they helped earn.
  8. Timeliness Principle
    assumes activities can be divided into specific time peroids.
  9. General Journal
    Most flexible; can be used to record any type of transaction
  10. Journal
    where transactions are recorded before they are recorded into accounts; posted from journal to ledger.
  11. Ledger
    record containing all accounts used by a business.
  12. Posting
    Transferring journal entries into ledger accounts.
  13. Slide
    Error occuring from adding or deleting a zero in a value.
  14. Transposition Error
    two digits being switched or transposed within a number
  15. Accounting Equation
    • A=L+E
    • AKA: Balance Sheet Equation!!
  16. Balance Sheet
    • reports financial position of a business at a point in time.
    • - Assets = Liabilities + Owners Equity
  17. Business Entity Principle
    requires every business be separte from its owner.
  18. Cost Principle
    requires financial statement info to be based on actual costs incurred in transaction.
  19. Equity
    owners claim on the assets of a business.
  20. Going Concern Principle
    requires financial statements to reflect that the business will continue operating instead of being closed or sold.
  21. Income Statement
    • subtracts expenses from revenues.
    • Revenues - Expenses =NI/NL
  22. Monetary Unit Principle
    expression of trasactions in money units.
  23. Revenue Recongition Pronciple
    revune is recorded at the time it is earned reguardless of whether cash or another asset has been exchanged.
  24. Statement of Changes in Equity
    • reports changes in equity over the reporting peroid.
    • - Starting Capital + Investments +/- NI/NL-Withdrawals =Owner, Capital
  25. Contra Account
    • linked with another account and having an opposite normal balance.
    • Subtraction from the other accounts balance.
  26. Account Form Balance Sheet
    Lists assets on left and liabilities on the right.
  27. Accural Basis Accounting
    financial statements that uses adjusting process to recongize revenues when earned and expenses when incurred.
  28. Cash Basis Accounting
    revenues are recongized when cash is recieved, and expenses are recongized when cash is paid.
  29. Interim financial reports
    financial reports covering less than one year.

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