ACCY 201 ,test 1 ,Ole Miss Burney Questions And Answers Rated A+

account - a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. accounting - an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities. accrual basis accounting - type of accounting that uses the adjusting process to recognize revenues when earned and expenses when incurred (matched with revenues). accrued expenses - refers to costs that are incurred in a period but are both unpaid and unrecorded. accrued revenues - refers to revenues earned in a period that are both unrecorded and not yet received in cash (or other assets). adjusting entry - made at the end of an accounting period to reflect a transaction or event that is not yet recorded. assets - resources a company owns or controls that are expected to yield future benefits. balance sheet - describes a company's financial position (types and amounts of assets, liabilities, and equity) at a point in time. assets = liabilities + owners equity business entity assumption - this assumption means that a business is accounted for separately from other business entities, including its owner. cash basis accounting - type of accounting that recognizes revenues when cash is received and records expenses when cash is of accounts - a list of all ledger accounts and includes an identification number assigned to each account. cost principle - prescribes that accounting information is based on actual cost (with a potential for subsequent adjustments to market).