8/11/26, 11:57 AM ACCT 3110 Qualification Exam UNT Flashcards | Quizlet
Historical Cost Principle
The concept that many transactions and events are to be measured and reported at
acquisition cost
Income Statement
A financial statement that summarizes the revenues, expenses, and results of
operations for a specified period of time
IASB (International Accounting Standards Board)
An organization charged with producing accounting standards with global
acceptance
Managerial Accounting
An area of accounting concerned with reporting results to managers and others who
are internal to an organization
Owner Investments
Resources provided to an organization by a person in exchange for a position of
ownership in the organization
Owner's Equity
The residual of assets minus liabilities, representing the collective interest or position
of the entity's owners
Public Accounting
Accounting activities provided by a person to the general public, typically relating to
audit, tax and similar services
Retained Earnigns
The excess of a corporation's income over its dividends
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,8/11/26, 11:57 AM ACCT 3110 Qualification Exam UNT Flashcards | Quizlet
Statement of Retained Earnings
A financial statement that discloses changes in retained earnings during a designated
period of time; those changes usually attributable to income and dividends. A
company's overall net income will cause retained earnings to increase, and a net loss
will result in a decrease. Retained earnings is also reduced by shareholder dividends.
Balance Sheet
The balance sheet focuses on the accounting equation by revealing the economic
resources owned by an entity and the claims against those resources (liabilities and
owners' equity).
The balance sheet is prepared as of a specific date, whereas the income statement
and statement of retained earnings cover a period of time. Accordingly, it is
sometimes said that the balance sheet portrays financial position (or condition) while
other statements reflect results of operations.
Statement of Cash Flows
The statement of cash flows details the enterprise's cash flows. This operating
statement reveals how cash is generated and expended during a specific period of
time. It consists of three unique sections that isolate the cash inflows and outflows
attributable to (a) operating activities, (b) investing activities, and (c) financing
activities
Basic Sequence in the accounting Process
T-S-J-L-T
Transaction, source document, journal entry, ledger account, trial balance.
Long-Term Asset Recording
cost of the asset plus all costs necessary to get the asset ready for use
Year-end Retained Earnings
= Beg retained earnings + net income - dividends paid
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, 8/11/26, 11:57 AM ACCT 3110 Qualification Exam UNT Flashcards | Quizlet
Accrual Basis Accounting
Under the accrual basis of accounting, expenses are matched with the related
revenues and/or are reported when the expense occurs, not when the cash is paid
Steps in the Accounting Cycle
1. Identify and analyze business transactions
2. Recording journal entries
3. Posting to the ledger
4. Unadjusted Trial Balance
5. Adjusting Entries
6. Adjusted Trial Balance
7. Financial Statements
8. Closing Entries
9. Post-Closing Trial Balance
Deposits in transit
Are added to the bank balance
Gross Profit
=Sales Revenues - COGS
Posting
Transferring the debit and credit information from the journal to individual accounts
in the general ledger
Trial Balance
A list of all accounts and their balances at a particular date. Provides a listing of the
balance of each account in active use.
Net Income
The excess of revenues over expenses for a designated period of time.
https://quizlet.com/307280311/acct-3110-qualification-exam-unt-flash-cards/ 4/21
Historical Cost Principle
The concept that many transactions and events are to be measured and reported at
acquisition cost
Income Statement
A financial statement that summarizes the revenues, expenses, and results of
operations for a specified period of time
IASB (International Accounting Standards Board)
An organization charged with producing accounting standards with global
acceptance
Managerial Accounting
An area of accounting concerned with reporting results to managers and others who
are internal to an organization
Owner Investments
Resources provided to an organization by a person in exchange for a position of
ownership in the organization
Owner's Equity
The residual of assets minus liabilities, representing the collective interest or position
of the entity's owners
Public Accounting
Accounting activities provided by a person to the general public, typically relating to
audit, tax and similar services
Retained Earnigns
The excess of a corporation's income over its dividends
https://quizlet.com/307280311/acct-3110-qualification-exam-unt-flash-cards/ 2/21
,8/11/26, 11:57 AM ACCT 3110 Qualification Exam UNT Flashcards | Quizlet
Statement of Retained Earnings
A financial statement that discloses changes in retained earnings during a designated
period of time; those changes usually attributable to income and dividends. A
company's overall net income will cause retained earnings to increase, and a net loss
will result in a decrease. Retained earnings is also reduced by shareholder dividends.
Balance Sheet
The balance sheet focuses on the accounting equation by revealing the economic
resources owned by an entity and the claims against those resources (liabilities and
owners' equity).
The balance sheet is prepared as of a specific date, whereas the income statement
and statement of retained earnings cover a period of time. Accordingly, it is
sometimes said that the balance sheet portrays financial position (or condition) while
other statements reflect results of operations.
Statement of Cash Flows
The statement of cash flows details the enterprise's cash flows. This operating
statement reveals how cash is generated and expended during a specific period of
time. It consists of three unique sections that isolate the cash inflows and outflows
attributable to (a) operating activities, (b) investing activities, and (c) financing
activities
Basic Sequence in the accounting Process
T-S-J-L-T
Transaction, source document, journal entry, ledger account, trial balance.
Long-Term Asset Recording
cost of the asset plus all costs necessary to get the asset ready for use
Year-end Retained Earnings
= Beg retained earnings + net income - dividends paid
https://quizlet.com/307280311/acct-3110-qualification-exam-unt-flash-cards/ 3/21
, 8/11/26, 11:57 AM ACCT 3110 Qualification Exam UNT Flashcards | Quizlet
Accrual Basis Accounting
Under the accrual basis of accounting, expenses are matched with the related
revenues and/or are reported when the expense occurs, not when the cash is paid
Steps in the Accounting Cycle
1. Identify and analyze business transactions
2. Recording journal entries
3. Posting to the ledger
4. Unadjusted Trial Balance
5. Adjusting Entries
6. Adjusted Trial Balance
7. Financial Statements
8. Closing Entries
9. Post-Closing Trial Balance
Deposits in transit
Are added to the bank balance
Gross Profit
=Sales Revenues - COGS
Posting
Transferring the debit and credit information from the journal to individual accounts
in the general ledger
Trial Balance
A list of all accounts and their balances at a particular date. Provides a listing of the
balance of each account in active use.
Net Income
The excess of revenues over expenses for a designated period of time.
https://quizlet.com/307280311/acct-3110-qualification-exam-unt-flash-cards/ 4/21
