ACCT 2101 Exam 1 with accurate detailed solutions || || || || || || ||
liabilities - ✔✔probable debts or obligations of the business enterprise that result from past
|| || || || || || || || || || || || || ||
transactions, which will be paid with assets or services || || || || || || || ||
stockholders' equity - ✔✔financing provided by the owners of a business enterprise and from
|| || || || || || || || || || || || || ||
business operations ||
operating cycle - ✔✔time it takes for a company to pay suppliers, sell goods and services to
|| || || || || || || || || || || || || || || || ||
customers, and collect case from customers || || || || ||
revenues - ✔✔increases in assets or settlements of liabilities from ongoing operations
|| || || || || || || || || || ||
expenses - ✔✔decreases in assets or increases in liabilities incurred to generate revenues during
|| || || || || || || || || || || || || ||
an accounting period
|| ||
cash basis accounting - ✔✔an overall method of accounting that records revenue when cash is
|| || || || || || || || || || || || || || ||
received and expenses when cash is paid || || || || || ||
accrual basis accounting - ✔✔an overall method of accounting that records revenue when earned
|| || || || || || || || || || || || || ||
and expenses when incurred
|| || ||
revenue principle - ✔✔principle that revenues are recognized when (1) goods or services are
|| || || || || || || || || || || || || ||
delivered, (2) there is persuasive evidence of an arrangement for customer payment, (3) the price
|| || || || || || || || || || || || || || ||
is fixed or determinable, and (4) collection is reasonably assured
|| || || || || || || || ||
balance sheet - ✔✔statement that reports the amount of assets, liabilities, and stockholders' equity
|| || || || || || || || || || || || ||
of a business enterprise at a specific point in time
|| || || || || || || || || ||
liabilities - ✔✔probable debts or obligations of the business enterprise that result from past
|| || || || || || || || || || || || || ||
transactions, which will be paid with assets or services || || || || || || || ||
stockholders' equity - ✔✔financing provided by the owners of a business enterprise and from
|| || || || || || || || || || || || || ||
business operations ||
operating cycle - ✔✔time it takes for a company to pay suppliers, sell goods and services to
|| || || || || || || || || || || || || || || || ||
customers, and collect case from customers || || || || ||
revenues - ✔✔increases in assets or settlements of liabilities from ongoing operations
|| || || || || || || || || || ||
expenses - ✔✔decreases in assets or increases in liabilities incurred to generate revenues during
|| || || || || || || || || || || || || ||
an accounting period
|| ||
cash basis accounting - ✔✔an overall method of accounting that records revenue when cash is
|| || || || || || || || || || || || || || ||
received and expenses when cash is paid || || || || || ||
accrual basis accounting - ✔✔an overall method of accounting that records revenue when earned
|| || || || || || || || || || || || || ||
and expenses when incurred
|| || ||
revenue principle - ✔✔principle that revenues are recognized when (1) goods or services are
|| || || || || || || || || || || || || ||
delivered, (2) there is persuasive evidence of an arrangement for customer payment, (3) the price
|| || || || || || || || || || || || || || ||
is fixed or determinable, and (4) collection is reasonably assured
|| || || || || || || || ||
balance sheet - ✔✔statement that reports the amount of assets, liabilities, and stockholders' equity
|| || || || || || || || || || || || ||
of a business enterprise at a specific point in time
|| || || || || || || || || ||
