CBP Domain 1 Vocab

What is a set of rules that ensure a company's operations and records provide consistent, reliable, and objective information?

• Accounting Cycle

• Accounting Assumptions

• Accrual Accounting

• Cash Basis Accounting

Which process involves identifying, analyzing, and recording a company's financial transactions?

• Depreciation

• Double Entry Accounting

• Accounting Cycle

• General Ledger

What accounting method records revenue and expenses when they occur, not when money is exchanged?

• Cash Basis Accounting

• Accrual Accounting

• Double Entry Accounting

• Historical Cost

What term describes what a company owns, reported on a Balance Sheet divided into current and fixed sections?

• Asset

• Expense

• Income Statement

• General Ledger

Which report reflects assets, liabilities, and owner's equity at a specifically defined moment?

• Income Statement

• Balance Sheet

• General Ledger

• Historical Cost

Which accounting method records revenue and expenses when money is exchanged, not when sales and services occur?

• Accrual Accounting

• Cash Basis Accounting

• Double Entry Accounting

• Depreciation

What is the term for a decrease in the value of an asset over time?

• Asset

• Depreciation

• Expense

• Historical Cost

Which method of accounting uses equal debit and credit entries for each financial transaction?

• Accrual Accounting

• Double Entry Accounting

• Cash Basis Accounting

• General Ledger

What is money spent by a company to generate revenue called?

• Asset

• Expense

• Income Statement

• Depreciation

What is a company's main accounting record used to organize transactions into the chart of accounts?

• Balance Sheet

• General Ledger

• Income Statement

• Historical Cost