HBS Core - Accounting
1. Assets = Liabilities + Owner's Equity: Fundamental Accounting Equation
2. Resources owned by a business: Asset - Definition
3. Obligations to pay a third party: Liabilities
4. Contributions from the owners' of a business. Assets - Liabilities: Owner's
Equity
5. Owners have the ability to make decisions about how the business op-
erates. Lenders/suppliers do not: Differences between Liabilities and Owner's
Equity
6. Profits: What increases owner's equity?
7. Expenses should be recognized in the same period in which the related
revenue is recognized rather than when the related cash is paid: Matching
Principle
8. Realization Principle. Matching Principle. Going Concern: Components of the
Accrual Accounting Method (3)
9. Revenue can only be recognized when the revenue is both earned and
realized/realizable: Realization Principle
10. A company is considered to be a going concern if the entity is expected
to remain in operation and be able to satisfy all commitments and obligations
and realize the benefits and values of all assets for the indefinite future. If
there is evidence to the contrary, the business may no longer be considered
a going concern: Going Concern
11. Healthy. Going concern means its expected to remain in operation and
satisfy all commitments/obligations: If a business is labeled as a going concern,
is that business healthy or unhealthy? Why?
12. Liability: Is deferred revenue an asset or liability?
13. Liability that represents the obligation to provide future goods/services: -
Deferred Revenue - Definition
14. For revenues and gains it means recording them when they are reasonably
certain but for expenses and losses it means recording them when they are
reasonably possible. For assets it means recording the lower valuation while
for liabilities it means recording the higher possible valuation.: Conservatism
15. Transactions are recorded at the cost that existed when the transaction
occurred.: Historical Cost Principle
16. Financial value of assets is shown at historical cost, rather than current
market value. Example - Land appreciation: Valuating Assets under Historical
Cost Principle
17. A business is a separately identifiable entity. Therefore, accounts of a
business should be completely separate from those of owners of the busi-
ness: Entity Concept
, HBS Core - Accounting
18. Only values that can be measured in monetary terms should be recorded
in financial accounting records. Intangible assets will not be recorded: Money
Measurement Principle
19. No - brand equity is an intangible asset: Is brand recognition/brand equity
recorded as an asset on financial statements?
20. Asset: Categorize: Cash
21. Asset: Categorize: Accounts Receivable
22. Asset: Categorize: Notes Receivable
23. Asset: Categorize: Interest Receivable
24. Asset: Categorize: Inventory
25. Asset: Categorize: Investments
26. Asset: Categorize: Fixed Assets
27. Asset: Categorize: Property, Plant & Equipment
28. Asset: Categorize: Prepaid Insurance
29. Asset: Categorize: Prepaid Rent
30. Asset: Categorize: Other Prepaid Expenses
31. Asset: Categorize: Goodwill
32. Asset: Categorize: Other Intangible Assets
33. Asset: Categorize: Deferred Tax Asset
34. Liability: Categorize: Accounts Payable
35. Liability: Categorize: Interest Payable
36. Liability: Categorize: Notes Payable
37. Liability: Categorize: Wages Payable
38. Liability: Categorize: Taxes Payable
39. Liability: Categorize: Accrued Interest
40. Liability: Categorize: Accrued Wages
41. Liability: Categorize: Accrued Taxes
42. Liability: Categorize: Deferred Revenue
43. Liability: Categorize: Short Term Debt
44. Liability: Categorize: Long Term Debt
45. Liability: Categorize: Deferred Tax Liability
46. Equity: Categorize: Common Stock
47. Equity: Categorize: Paid In Capital
48. Equity: Categorize: Treasury Stock
49. Equity: Categorize: Retained Earnings
50. Equity: Categorize: Capital Stock
51. Revenue: Categorize: Sales
52. Revenue: Categorize: Sales Revenue
53. Revenue: Categorize: Interest Revenue
1. Assets = Liabilities + Owner's Equity: Fundamental Accounting Equation
2. Resources owned by a business: Asset - Definition
3. Obligations to pay a third party: Liabilities
4. Contributions from the owners' of a business. Assets - Liabilities: Owner's
Equity
5. Owners have the ability to make decisions about how the business op-
erates. Lenders/suppliers do not: Differences between Liabilities and Owner's
Equity
6. Profits: What increases owner's equity?
7. Expenses should be recognized in the same period in which the related
revenue is recognized rather than when the related cash is paid: Matching
Principle
8. Realization Principle. Matching Principle. Going Concern: Components of the
Accrual Accounting Method (3)
9. Revenue can only be recognized when the revenue is both earned and
realized/realizable: Realization Principle
10. A company is considered to be a going concern if the entity is expected
to remain in operation and be able to satisfy all commitments and obligations
and realize the benefits and values of all assets for the indefinite future. If
there is evidence to the contrary, the business may no longer be considered
a going concern: Going Concern
11. Healthy. Going concern means its expected to remain in operation and
satisfy all commitments/obligations: If a business is labeled as a going concern,
is that business healthy or unhealthy? Why?
12. Liability: Is deferred revenue an asset or liability?
13. Liability that represents the obligation to provide future goods/services: -
Deferred Revenue - Definition
14. For revenues and gains it means recording them when they are reasonably
certain but for expenses and losses it means recording them when they are
reasonably possible. For assets it means recording the lower valuation while
for liabilities it means recording the higher possible valuation.: Conservatism
15. Transactions are recorded at the cost that existed when the transaction
occurred.: Historical Cost Principle
16. Financial value of assets is shown at historical cost, rather than current
market value. Example - Land appreciation: Valuating Assets under Historical
Cost Principle
17. A business is a separately identifiable entity. Therefore, accounts of a
business should be completely separate from those of owners of the busi-
ness: Entity Concept
, HBS Core - Accounting
18. Only values that can be measured in monetary terms should be recorded
in financial accounting records. Intangible assets will not be recorded: Money
Measurement Principle
19. No - brand equity is an intangible asset: Is brand recognition/brand equity
recorded as an asset on financial statements?
20. Asset: Categorize: Cash
21. Asset: Categorize: Accounts Receivable
22. Asset: Categorize: Notes Receivable
23. Asset: Categorize: Interest Receivable
24. Asset: Categorize: Inventory
25. Asset: Categorize: Investments
26. Asset: Categorize: Fixed Assets
27. Asset: Categorize: Property, Plant & Equipment
28. Asset: Categorize: Prepaid Insurance
29. Asset: Categorize: Prepaid Rent
30. Asset: Categorize: Other Prepaid Expenses
31. Asset: Categorize: Goodwill
32. Asset: Categorize: Other Intangible Assets
33. Asset: Categorize: Deferred Tax Asset
34. Liability: Categorize: Accounts Payable
35. Liability: Categorize: Interest Payable
36. Liability: Categorize: Notes Payable
37. Liability: Categorize: Wages Payable
38. Liability: Categorize: Taxes Payable
39. Liability: Categorize: Accrued Interest
40. Liability: Categorize: Accrued Wages
41. Liability: Categorize: Accrued Taxes
42. Liability: Categorize: Deferred Revenue
43. Liability: Categorize: Short Term Debt
44. Liability: Categorize: Long Term Debt
45. Liability: Categorize: Deferred Tax Liability
46. Equity: Categorize: Common Stock
47. Equity: Categorize: Paid In Capital
48. Equity: Categorize: Treasury Stock
49. Equity: Categorize: Retained Earnings
50. Equity: Categorize: Capital Stock
51. Revenue: Categorize: Sales
52. Revenue: Categorize: Sales Revenue
53. Revenue: Categorize: Interest Revenue
