Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf
Terms in this set (39)
What is accounting? The identification, measurement, and communication of financial information
about economic entities to interested parties.
Why is accounting referred to as the 'language of Because it communicates financial information that is essential for decision-
business'? making by various stakeholders.
Who are the interested parties in accounting? Stakeholders such as investors, creditors, management, and regulatory
agencies.
What are the main functions of accounting? To identify, measure, and communicate financial information.
What does the term 'financial information' encompass in Data related to the financial performance and position of an economic entity.
accounting?
Who are internal users in accounting? Managers who plan, organize, and run a business.
Who are external users in accounting? Regulators.
Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf
, Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf
What does GAAP stand for? Generally Accepted Accounting Principles.
What is the accounting equation? Assets = Liabilities + Stockholders Equity.
What does the income statement report? The success of the business during a period of time.
What does the retained earnings statement show? How much income was distributed to owners and how much was retained.
What does the balance sheet capture? A point in time of what a business owns and what it owes.
What is the purpose of the statement of cash flows? To provide financial information about cash receipts and payments for a
specific period.
What are accounting transactions? Economic events that require recording in the financial statements.
What is revenue recognition? An increase to revenue recognized when the company provides goods or
performs services.
What is the normal balance for assets? Debit.
Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf
Terms in this set (39)
What is accounting? The identification, measurement, and communication of financial information
about economic entities to interested parties.
Why is accounting referred to as the 'language of Because it communicates financial information that is essential for decision-
business'? making by various stakeholders.
Who are the interested parties in accounting? Stakeholders such as investors, creditors, management, and regulatory
agencies.
What are the main functions of accounting? To identify, measure, and communicate financial information.
What does the term 'financial information' encompass in Data related to the financial performance and position of an economic entity.
accounting?
Who are internal users in accounting? Managers who plan, organize, and run a business.
Who are external users in accounting? Regulators.
Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf
, Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf
What does GAAP stand for? Generally Accepted Accounting Principles.
What is the accounting equation? Assets = Liabilities + Stockholders Equity.
What does the income statement report? The success of the business during a period of time.
What does the retained earnings statement show? How much income was distributed to owners and how much was retained.
What does the balance sheet capture? A point in time of what a business owns and what it owes.
What is the purpose of the statement of cash flows? To provide financial information about cash receipts and payments for a
specific period.
What are accounting transactions? Economic events that require recording in the financial statements.
What is revenue recognition? An increase to revenue recognized when the company provides goods or
performs services.
What is the normal balance for assets? Debit.
Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf Comprehensive Accounting Principles and Financial Statement Concepts.pdf
