Principles of Financial Accounting...!
Principles of Financial Accounting
Balance Sheet - ANS-Reports the amount of assets, liabilities, and stockholders' equity
of an accounting entity at a point in time.
Income Statement - ANS-Reports the revenues less the expenses of the accounting
period.
Statement of Retained Earnings - ANS-Reports the way that net income and distribution
of dividends affected the financial position of the company during the accounting period.
Statement of Cash Flows - ANS-Reports inflows and outflows of cash during the
accounting period in the categories of operating, investing, and financing.
Dividends - ANS-Earnings distributed to stockholders.
The Accounting Equation - ANS-A=L + SE
Assets - ANS-Economic resources owned by the company expected to provide benefits
to the firm.
Liabilities - ANS-The company's debts or obligations.
Stockholder's Equity - ANS-Indicates the amount of financing provided by the owners of
the business and earnings.
Income Statement - ANS-Reports the accountant's primary measure of performance of
a business, revenues less expenses during the accounting period.
Accounting Period - ANS-The time period covered by the financial statements.
Revenues - ANS-Earned from the sale of goods or services, as reported whether or not
they have yet been paid for.
Expenses - ANS-Representation of the dollar amount of resources the entity used to
earn revenues during the period.
Net Income - ANS-The excess of total revenues over total expenses (profit)
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, Principles of Financial Accounting...!
Notes - ANS-Descriptions of the key accounting rules that apply to the company's
statements, additional details supporting reported numbers, and relevant financial
information not disclosed on the statements.
Receipts - ANS-The entire amount of income before any deductions are made
Cash flows from operating activities - ANS-Cash flows that are directly related to
earning income
Cash flows from investing activities - ANS-Include cash flows related to the acquisition
or sale of the company's productive assets.
Cash flows from financing activities - ANS-Directly related to the financing of the
enterprise itself.
Separate Entity Assumption - ANS-States that each business's activities must be
accounted for separately from thh activities of its owners, all other persons, and other
entities.
Unit-of-Measure Assumption - ANS-Each business entity accounts for and reports its
financial results primarily in terms of the national monetary unit.
Continuity (Going-concern) Assumption - ANS-A business normally is assumed to
continue operating long enough to meet its contractual commitments and plans.
HIstorical Cost Principle - ANS-On the acquisition date, cash paid plus the dollar value
of all non-cash considerations (any assets, privileges, or rights) given in the exchange
become the historical cost of a new asset.
Creditors - ANS-Entities that a company owes money to
Retained Earnings - ANS-Earnings that are not distributed to the owners but are
reinvested in the business by management
Materiality Exception - ANS-Suggests that small amounts that are not likely to influence
a user's decision can be accounted for in the most cost-beneficial manner.
Conservatism Exception - ANS-Suggests that care should be taken not to overstate
assets and revenues or understate liabilities and expenses.
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Principles of Financial Accounting
Balance Sheet - ANS-Reports the amount of assets, liabilities, and stockholders' equity
of an accounting entity at a point in time.
Income Statement - ANS-Reports the revenues less the expenses of the accounting
period.
Statement of Retained Earnings - ANS-Reports the way that net income and distribution
of dividends affected the financial position of the company during the accounting period.
Statement of Cash Flows - ANS-Reports inflows and outflows of cash during the
accounting period in the categories of operating, investing, and financing.
Dividends - ANS-Earnings distributed to stockholders.
The Accounting Equation - ANS-A=L + SE
Assets - ANS-Economic resources owned by the company expected to provide benefits
to the firm.
Liabilities - ANS-The company's debts or obligations.
Stockholder's Equity - ANS-Indicates the amount of financing provided by the owners of
the business and earnings.
Income Statement - ANS-Reports the accountant's primary measure of performance of
a business, revenues less expenses during the accounting period.
Accounting Period - ANS-The time period covered by the financial statements.
Revenues - ANS-Earned from the sale of goods or services, as reported whether or not
they have yet been paid for.
Expenses - ANS-Representation of the dollar amount of resources the entity used to
earn revenues during the period.
Net Income - ANS-The excess of total revenues over total expenses (profit)
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, Principles of Financial Accounting...!
Notes - ANS-Descriptions of the key accounting rules that apply to the company's
statements, additional details supporting reported numbers, and relevant financial
information not disclosed on the statements.
Receipts - ANS-The entire amount of income before any deductions are made
Cash flows from operating activities - ANS-Cash flows that are directly related to
earning income
Cash flows from investing activities - ANS-Include cash flows related to the acquisition
or sale of the company's productive assets.
Cash flows from financing activities - ANS-Directly related to the financing of the
enterprise itself.
Separate Entity Assumption - ANS-States that each business's activities must be
accounted for separately from thh activities of its owners, all other persons, and other
entities.
Unit-of-Measure Assumption - ANS-Each business entity accounts for and reports its
financial results primarily in terms of the national monetary unit.
Continuity (Going-concern) Assumption - ANS-A business normally is assumed to
continue operating long enough to meet its contractual commitments and plans.
HIstorical Cost Principle - ANS-On the acquisition date, cash paid plus the dollar value
of all non-cash considerations (any assets, privileges, or rights) given in the exchange
become the historical cost of a new asset.
Creditors - ANS-Entities that a company owes money to
Retained Earnings - ANS-Earnings that are not distributed to the owners but are
reinvested in the business by management
Materiality Exception - ANS-Suggests that small amounts that are not likely to influence
a user's decision can be accounted for in the most cost-beneficial manner.
Conservatism Exception - ANS-Suggests that care should be taken not to overstate
assets and revenues or understate liabilities and expenses.
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