ACG 2021 EXAM 1 REVIEW 100%
ACCURATE
, accounting - ANSWERthe information system that measures business activities,
processes that information into reports and financial statements, and communicates the
results to decision makers
accounting equation - ANSWERASSETS = LIABILITIES + STOCKHOLDER'S EQUITY
Balance Sheet - ANSWER(Statement of Financial Position)
list of an entity's assets, liabilities, and owner's equity as of a specific date.
Dated at a specific time
-accounts payable
-inventory
-long-term debt
-cash
-retained earnings
-common stock
Continuity Assumption or Going- Concern Assumption - ANSWERholds that the entity
will remain in operation for the foreseeable future
Corporation - ANSWERa business owned by stockholders.
A legal entitiy
current liability - ANSWERa debt due to be paid within one year or within the entity's
operating cycle if the cycle is longer than a year
current asset - ANSWERan asset that is expected to be converted to cash sold, or
consumed during the next 12 months, or within the business's normal cylce if the cycle
is longer than a year
deficit - ANSWERnegative balance in retained earnings caused by net losses over a
period of years
dividends - ANSWERdistributions (usually cash) by a corporation to its stockholders
fair value - ANSWERthe amount that a business could sell an asset for, or the amount
that a business could pay to settle a liability
financial accounting - ANSWERthe branch of accounting that provides information
ACCURATE
, accounting - ANSWERthe information system that measures business activities,
processes that information into reports and financial statements, and communicates the
results to decision makers
accounting equation - ANSWERASSETS = LIABILITIES + STOCKHOLDER'S EQUITY
Balance Sheet - ANSWER(Statement of Financial Position)
list of an entity's assets, liabilities, and owner's equity as of a specific date.
Dated at a specific time
-accounts payable
-inventory
-long-term debt
-cash
-retained earnings
-common stock
Continuity Assumption or Going- Concern Assumption - ANSWERholds that the entity
will remain in operation for the foreseeable future
Corporation - ANSWERa business owned by stockholders.
A legal entitiy
current liability - ANSWERa debt due to be paid within one year or within the entity's
operating cycle if the cycle is longer than a year
current asset - ANSWERan asset that is expected to be converted to cash sold, or
consumed during the next 12 months, or within the business's normal cylce if the cycle
is longer than a year
deficit - ANSWERnegative balance in retained earnings caused by net losses over a
period of years
dividends - ANSWERdistributions (usually cash) by a corporation to its stockholders
fair value - ANSWERthe amount that a business could sell an asset for, or the amount
that a business could pay to settle a liability
financial accounting - ANSWERthe branch of accounting that provides information
