10/25/24, 7:16 AM ACCOUNTING CRASH COURSE | 2024-2025 UPDATE | COMPREHENSIVE MOST FREQUENTLY TESTED QUESTIION …
ACCOUNTING CRASH COURSE | 2024-2025
UPDATE | COMPREHENSIVE MOST
FREQUENTLY TESTED QUESTIION WITH
VERIFIED SOLITIONS| GRADED A+| GET IT 100%
ACCURATE!!
Terms in this set (193)
Accounting is important firm's officers, investors, lenders, and the general
for public
Generally Accepted a set of accounting standards that is used in the
Accounting Principles preparation of financial statements
(GAAP)
Securities and Exchange -division of corporate finance: oversees financial
Commission (SEC) reporting by corporations
Types of pronouncements:
-Statements of Financial Accounting Standards
Financial Accounting
-Interpretations
Standards Board (FASB)
-Financial Accounting Concepts
-Emerging Issues Task Force Statements
International Financial unified set of international accounting standards
Reporting Standards
(IFRS)
-a company is considered a separate "living"
enterprise apart from its owners
Assumption 1: Accounting -it is engaged in clearly-defined activities
Entity -regularly reports its financial health to the general
publics
-pays taxes and can file lawsuits
https://quizlet.com/962329976/accounting-crash-course-2024-2025-update-comprehensive-most-frequently-tested-questiion-with-verified-solition… 1/18
,10/25/24, 7:16 AM ACCOUNTING CRASH COURSE | 2024-2025 UPDATE | COMPREHENSIVE MOST FREQUENTLY TESTED QUESTIION …
-a corporation is assumed to remain in existence
indefinitely
Assumption 2: Going
-assets and liabilities are recognized values that
Concern
assume the company will not have to sell them at
liquidation
-financial statements must be reported in the
Assumption 3: national monetary unit
Measurement -can only show measurable activities of a
corporation
-companies are required to file annual and interim
reports
Assumption 4: Periodicity
-a fiscal year is frequently but not always aligned
with the calendar year
-financial statements report companies' resources at
an initial historical cost
-represents the easiest measurement method
Principle 1: Historical
without a need a for appraisal and revaluation
Cost
-minimized management discretion and subjectivity
-IFRS is more willing to allow this subjectivity to
avoid misrepresenting the true value of assets
accrual basis of accounting dictates that revenues
must be recorded when earned and measurable
Principle 2: Revenue
-cannot be recorded until the order is shipped to a
Recognition
customer and collection from that customer (who
uses a credit card) is reasonably assured
costs associated with making a product must be
Principle 3: Matching
recorded during the same period as revenue
Principle
generated from that product
companies must reveal all relevant economic
information that they determine to make a
Principle 4: Full difference to its users
Disclosure -should be accomplished in: financial statements,
notes to financial statements, and supplementary
information
https://quizlet.com/962329976/accounting-crash-course-2024-2025-update-comprehensive-most-frequently-tested-questiion-with-verified-solition… 2/18
, 10/25/24, 7:16 AM ACCOUNTING CRASH COURSE | 2024-2025 UPDATE | COMPREHENSIVE MOST FREQUENTLY TESTED QUESTIION …
certain measurements cannot be performed
Contraint 1: Estimates &
completely accurately and must therefore utilize
Judgements
conservative estimates and judgements
inclusion and disclosure of financial transactions in
financial statements hinge on their size and effect
Constraint 2: Materiality
on the company performing them
-materiality varies across different entities
for each company, the preparation financial
statements must utilize measurement techniques
Constraint 3: Consistency
and assumptions which are consistent from one
period to another
financial statements should be prepared with a
downward measurement bias
Constraint 4:
-assets and revenues should not be overstates,
Conservatism
while liabilities and expenses should not be
understated
-required annual filing
-must be filed within 60-90 days within year end
Form 10-K
-provides the most detailed overview of companies'
financial operations and regulations governing them
-publicly-traded companies file a quarterly report
Form 10-Q with the SEC for the first three quarters
-must be filed within 40-45 days of quarter end
-10-K's are more detailed
-10-K reports are audited by an independent firm
10-K vs. 10-Q
while 10-Q filings are reviewed by a CPA but are
unaudited
required filing any time a company undergoes or
announces a materially significant event such as a n
Form 8-K earnings press release, an acquisition, a disposal of
assets, bankruptcy, etc.
-usually filed within 4 days of the event
-required filing prior to companies' annual
Form 14A (Proxy shareholder meetings
Statement) -contains detailed information about top officers
and their compensations
https://quizlet.com/962329976/accounting-crash-course-2024-2025-update-comprehensive-most-frequently-tested-questiion-with-verified-solition… 3/18
ACCOUNTING CRASH COURSE | 2024-2025
UPDATE | COMPREHENSIVE MOST
FREQUENTLY TESTED QUESTIION WITH
VERIFIED SOLITIONS| GRADED A+| GET IT 100%
ACCURATE!!
Terms in this set (193)
Accounting is important firm's officers, investors, lenders, and the general
for public
Generally Accepted a set of accounting standards that is used in the
Accounting Principles preparation of financial statements
(GAAP)
Securities and Exchange -division of corporate finance: oversees financial
Commission (SEC) reporting by corporations
Types of pronouncements:
-Statements of Financial Accounting Standards
Financial Accounting
-Interpretations
Standards Board (FASB)
-Financial Accounting Concepts
-Emerging Issues Task Force Statements
International Financial unified set of international accounting standards
Reporting Standards
(IFRS)
-a company is considered a separate "living"
enterprise apart from its owners
Assumption 1: Accounting -it is engaged in clearly-defined activities
Entity -regularly reports its financial health to the general
publics
-pays taxes and can file lawsuits
https://quizlet.com/962329976/accounting-crash-course-2024-2025-update-comprehensive-most-frequently-tested-questiion-with-verified-solition… 1/18
,10/25/24, 7:16 AM ACCOUNTING CRASH COURSE | 2024-2025 UPDATE | COMPREHENSIVE MOST FREQUENTLY TESTED QUESTIION …
-a corporation is assumed to remain in existence
indefinitely
Assumption 2: Going
-assets and liabilities are recognized values that
Concern
assume the company will not have to sell them at
liquidation
-financial statements must be reported in the
Assumption 3: national monetary unit
Measurement -can only show measurable activities of a
corporation
-companies are required to file annual and interim
reports
Assumption 4: Periodicity
-a fiscal year is frequently but not always aligned
with the calendar year
-financial statements report companies' resources at
an initial historical cost
-represents the easiest measurement method
Principle 1: Historical
without a need a for appraisal and revaluation
Cost
-minimized management discretion and subjectivity
-IFRS is more willing to allow this subjectivity to
avoid misrepresenting the true value of assets
accrual basis of accounting dictates that revenues
must be recorded when earned and measurable
Principle 2: Revenue
-cannot be recorded until the order is shipped to a
Recognition
customer and collection from that customer (who
uses a credit card) is reasonably assured
costs associated with making a product must be
Principle 3: Matching
recorded during the same period as revenue
Principle
generated from that product
companies must reveal all relevant economic
information that they determine to make a
Principle 4: Full difference to its users
Disclosure -should be accomplished in: financial statements,
notes to financial statements, and supplementary
information
https://quizlet.com/962329976/accounting-crash-course-2024-2025-update-comprehensive-most-frequently-tested-questiion-with-verified-solition… 2/18
, 10/25/24, 7:16 AM ACCOUNTING CRASH COURSE | 2024-2025 UPDATE | COMPREHENSIVE MOST FREQUENTLY TESTED QUESTIION …
certain measurements cannot be performed
Contraint 1: Estimates &
completely accurately and must therefore utilize
Judgements
conservative estimates and judgements
inclusion and disclosure of financial transactions in
financial statements hinge on their size and effect
Constraint 2: Materiality
on the company performing them
-materiality varies across different entities
for each company, the preparation financial
statements must utilize measurement techniques
Constraint 3: Consistency
and assumptions which are consistent from one
period to another
financial statements should be prepared with a
downward measurement bias
Constraint 4:
-assets and revenues should not be overstates,
Conservatism
while liabilities and expenses should not be
understated
-required annual filing
-must be filed within 60-90 days within year end
Form 10-K
-provides the most detailed overview of companies'
financial operations and regulations governing them
-publicly-traded companies file a quarterly report
Form 10-Q with the SEC for the first three quarters
-must be filed within 40-45 days of quarter end
-10-K's are more detailed
-10-K reports are audited by an independent firm
10-K vs. 10-Q
while 10-Q filings are reviewed by a CPA but are
unaudited
required filing any time a company undergoes or
announces a materially significant event such as a n
Form 8-K earnings press release, an acquisition, a disposal of
assets, bankruptcy, etc.
-usually filed within 4 days of the event
-required filing prior to companies' annual
Form 14A (Proxy shareholder meetings
Statement) -contains detailed information about top officers
and their compensations
https://quizlet.com/962329976/accounting-crash-course-2024-2025-update-comprehensive-most-frequently-tested-questiion-with-verified-solition… 3/18
