Principles of Accounting Chapters 1-2
Principles of Accounting Chapters 1-2
Managerial Accounting - ANS-accounting used to provide information and analyses to
managers inside the organization to assist them in decision making
Financial Accounting - ANS-the branch of accounting that prepares financial statements
for use by owners, creditors, suppliers, and other external stakeholders
Public Accounting - ANS-The field of accounting where accountants and their staff
provide services on a fee basis.
Private Accounting - ANS-The field of accounting whereby accountants are employed
by a business firm or a not-for-profit organization.
Financial Accounting Standards Board (FASB) - ANS-The primary accounting
standard-setting body in the United States.
Generally Accepted Accounting Principles (GAAP) - ANS-accounting guidelines that
govern the content and form of financial reports
Forms of Business - ANS-sole proprietorship, partnership, corporation
Accounting Principles - ANS-The generally accepted rules which govern the way
accounting information is recorded
Measurement Principle - ANS-Principle that prescribes financial statement information,
and its underlying transactions and events, be based on relevant measures of valuation;
also called the cost principle.
Revenue Recognition Principle - ANS-The principle that companies recognize revenue
in the accounting period in which the performance obligation is satisfied.
Matching Principle - ANS-recognize expenses in the same period as the revenues they
help to generate
Full Disclosure Principle - ANS-Accounting principle that dictates that companies
disclose circumstances and events that make a difference to financial statement users.
Accounting Equation - ANS-Assets = Liabilities + Owner's Equity
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Principles of Accounting Chapters 1-2
Managerial Accounting - ANS-accounting used to provide information and analyses to
managers inside the organization to assist them in decision making
Financial Accounting - ANS-the branch of accounting that prepares financial statements
for use by owners, creditors, suppliers, and other external stakeholders
Public Accounting - ANS-The field of accounting where accountants and their staff
provide services on a fee basis.
Private Accounting - ANS-The field of accounting whereby accountants are employed
by a business firm or a not-for-profit organization.
Financial Accounting Standards Board (FASB) - ANS-The primary accounting
standard-setting body in the United States.
Generally Accepted Accounting Principles (GAAP) - ANS-accounting guidelines that
govern the content and form of financial reports
Forms of Business - ANS-sole proprietorship, partnership, corporation
Accounting Principles - ANS-The generally accepted rules which govern the way
accounting information is recorded
Measurement Principle - ANS-Principle that prescribes financial statement information,
and its underlying transactions and events, be based on relevant measures of valuation;
also called the cost principle.
Revenue Recognition Principle - ANS-The principle that companies recognize revenue
in the accounting period in which the performance obligation is satisfied.
Matching Principle - ANS-recognize expenses in the same period as the revenues they
help to generate
Full Disclosure Principle - ANS-Accounting principle that dictates that companies
disclose circumstances and events that make a difference to financial statement users.
Accounting Equation - ANS-Assets = Liabilities + Owner's Equity
Page 1
