Accounting Ch. 1: T Accounts (Exam 1 Questions) with answers graded A+ 2023

Contributed Capital(Under title of "common stock") - Refers to the amount that stockholder's invest in company Define a jornal - Gives a complete record of each transaction in one place Define Accounting - A system that identifies, records, communications information that is relevant, reliable, comparable about an organization's business activities Define adjusting entry - Made at the end of an accounting period to reflect a transaction or event that is not yet recorded -Necessary for revenues,expenses,assets, and liabilities Define Assets - Resources a company owns or controls Define Balance Sheet - Describes a company's financial position (types and amounts of assets, liabilities, and equity) at a point in time Define chart of accounts - A list of all ledger accounts and includes an identification number assigned to each account Define Corporation(also called C corporation) - A business legally separate from its owner or owners, meaning it is responsible for its own acts and its own acts and its own debts. Define Credit Entry - Decrease asset and expense accounts and increases liability, common stock and revenue accounts Define depreciation - The process of allocating the costs of these assets over their expected useful lives Define Dividends - The distribution of assets to stockholders Define Double-entry accounting - -At least two accounts are involved, with at least one debit and one credit -The total amount debited must equal the total amount credited -The accounting equation must not be violated Define Equity - The owner's claim on assets Define Ethics - -Beliefs that distinguish right from wrong -Accepted standards of good and bad behavior Define expense recognition principle (matching principle) - Prescribes that a company record the expenses it incurred to generate the revenue reported Define Expenses - Decrease retained earnings and are the cost of assets or services used to earn revenues Define External Transactions - Exchange of value between two entities, which yield changes in the accounting equation Define Fiscal year - An organization can adopt to this consisting of any 12 consecutive months Define Fraud triangle - -A model created by a criminologist -Asserts from the three factors (opportunity, pressure, and rationalization) Define full disclosure principle - Prescribes that a company report the details behind financial statements that would impact users' decisions Define General journal - Used to record any transactions: -Date of transaction -Titles of affected accounts -Dollar amount of each debit and credit -Explanation of the transaction Define general-purpose - Refers to the broad range of purposes for which external users rely on these statements