This provides internal reports to help users make decisions about their companies.

(a)  

Are individuals and organizations outside a company who want fi nancial information about the company.

(a)  

The standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair, are et (a)   .

The standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair are called (a)   .

The accounting profession has developed standards that are generally accepted and universally practiced. This common set of standards is called (a)   .

The primary accounting standard-setting body in the United States is the (a)  

The (a)   is the agency of the U.S. government that oversees U.S. financial markets and accounting standard-setting bodies.

(IFRS).

(a)  

The (a)   dictates that companies record assets at their cost.

are resources a business owns.

(a)  

are claims against assets—that is, existing debts and obligations.

(a)  

The ownership claim on total assets is (a)   . It is equal to total assets minus total liabilities.

are the gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income

(a)  

are a business’s economic events recorded by accountants. It may be external or internal.

(a)  

uses accounting, auditing, and investigative skills to conduct investigations into theft and fraud.

(a)  

is another major area of public accounting. The work that tax specialists perform includes tax advice and planning, preparing tax returns, and representing clients before governmental agencies such as the Internal Revenue Service.

(a)  

A part of the accounting process that involves only the recording of economic events.

(a)  

The information system that identifi es, records, and communicates the economic events of an organization to interested users.

(a)  

Resources a business owns.

(a)  

The examination of financial statements by a certified public accountant in order to express an opinion as to the fairness of presentation

(a)  

A business organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock.

(a)  

A private organization that establishes generally accepted accounting principles in the United States (GAAP)

(a)  

Law passed by Congress intended to reduce unethical corporate behavior.

(a)  

Which of the following is not a step in the accounting process? (a) Identification. (c) Recording. (b) Economic entity. (d) Communication.

(a)  

The term (a)   indicates the left side of an account

(a)   indicates the right side.

referred to as the book of original entry.

(a)  

Entering transaction data in the journal is known as (a)  

The entire group of accounts maintained by a company is the (a)   .

THE BOOK OF FINAL ENTRY IS CALLED (a)   .

A (a)   is a list of accounts and their balances at a given time

A (a)   is placed under the column of figures to be added or subtracted.

A system that records in appropriate accounts the dual effect of each transaction.

(a)  

A journal entry that involves three or more accounts.

(a)  

The procedure of transferring journal entries to the ledger accounts

(a)  

A journal entry that involves only two accounts.

(a)  

A list of accounts and the account numbers that identify their location in the ledger.

(a)  

A list of accounts and their balances at a given time.

(a)  

A record of increases and decreases in specific asset, liability, or owner’s equity items

(a)  

Accounting time periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called (a)  

An accounting time period that is one year in length is a (a)   .

Accounting basis in which companies record transactions that change a company’s financial statements in the periods in which the events occur

(a)  

Adjusting entries for either accrued revenues or accrued expenses.

(a)  

Expenses incurred but not yet paid in cash or recorded.

(a)  

Revenues for services performed but not yet received in cash or recorded.

(a)  

A list of accounts and their balances after the company has made all adjustments.

(a)  

Entries made at the end of an accounting period to ensure that companies follow the revenue recognition and expense recognition principles

(a)  

The difference between the cost of a depreciable asset and its related accumulated depreciation

(a)  

An accounting period that extends from January 1 to December 31.

(a)  

Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash.

(a)  

Ability to compare the accounting information of different companies because they use the same accounting principles.

(a)  

Use of the same accounting principles and methods from year to year within a company

(a)  

An account offset against an asset account on the balance sheet

(a)  

Adjusting entries for either prepaid expenses or unearned revenues.

(a)  

The process of allocating the cost of an asset to expense over its useful life

(a)  

A company-specific aspect of relevance. An item is material when its size makes it likely to influence the decision of an investor or creditor.

(a)  

Entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner’s equity account, Owner’s Capital.

(a)  

Entries to correct errors made in recording transactions.

(a)  

Assets that a company expects to convert to cash or use up within one year

(a)  

Obligations that a company expects to pay within the coming year or its operating cycle, whichever is longer.

(a)  

A temporary account used in closing revenue and expense accounts

(a)  

Noncurrent assets that do not have physical substance.

(a)  

The ability of a company to pay obligations expected to be due within the next year

(a)  

A list of permanent accounts and their balances after a company has journalized and posted closing entries.

(a)  

The average time that it takes to purchase inventory, sell it on account, and then collect cash from customers.

(a)  

A multiple-column form that may be used in making adjusting entries and in preparing financial statements.

(a)  

An entry, made at the beginning of the next accounting period that is the exact opposite of the adjusting entry made in the previous period.

(a)  

Accounts that relate to one or more future accounting periods. Consist of all balance sheet accounts. Balances are carried forward to the next accounting period.

(a)  

Accounts that relate only to a given accounting period. Consist of all income statement accounts and owner’s drawings account. All temporary accounts are closed at end of the accounting period.

(a)  

An account that is offset against a revenue account on the income statement.

(a)  

Freight terms indicating that the seller places the goods free on board to the buyer’s place of business, and the seller pays the freight.

(a)  

Freight terms indicating that the seller places goods free on board the carrier, and the buyer pays the freight costs.

(a)  

The excess of net sales over the cost of goods sold.

(a)  

An inventory system under which the company does not keep detailed inventory records throughout the accounting period but determines the cost of goods sold only at the end of an accounting period. (

(a)  

An inventory system under which the company keeps detailed records of the cost of each inventory purchase and sale, and the records continuously show the inventory that should be on hand

(a)  

An income statement that shows only one step in determining net income

(a)  

Inventory costing method that assumes that the costs of the earliest goods purchased are the fi rst to be recognized as cost of goods sold

(a)  

Inventory costing method that assumes the costs of the latest units purchased are the first to be allocated to cost

(a)  

provides that all certified public accountants (CPAs) shall abide by the requirements, rules and regulations on continuing professional education to be promulgated by the Board of Accountancy (BOA), subject to approval of the Professional Regulation Commission (PRC).

(a)  

In 1494, his first book,  (a)   _, was published in Venice by luca Pacioli

Obligations (amounts owed) are reported on the balance sheet and are referred to as  (a)   .

Accounting entries involve a minimum of how many accounts?

(a)  

is a small amount of money available for paying small expenses without writing a check.

(a)