Accounting CH 1 Flashcards
According to the fraud triangle, three factors must be present to for a person to commit fraud
Opportunity, Pressure, and Rationalization
What are Generally accepted accounting principles? (GAAP)
Concepts and rules that govern financial accounting practice
All of the following are part of the FASB conceptual framework:
Objectives, Elements, Recognition and measurement, and Qualitative characteristics
The four general accepted accounting principles are as follows
Full disclosure, Expense Recognition, Revenue Recognition, and Measurement
Data analytics
is a process of analyzing data to identify meaningful relations and trends
An employee having trouble paying his bills might exhibit the following fraud factor as
Pressure
GAAP wants information to have
relevance and faithful representation
Revenue recognition is received when
Goods and services are provided to customers
Equity is composed of equity and
retained earnings
A corporations equity is composed of two main parts:
Retained earnings and Contributed capitol
Dividends are
resources paid to the stockholders
A single line means
an addition or subtraction
Double line means
Final totals
Is notes receivable a asset or liability
Asset
Owners capitol
equity account
Notes receivable acquire
interest
Notes Receivable is a written promise that
you pay a specific amount of money at a future date
Chart of Accounts
a list of all ledger accounts in a business and includes an identification number assigned to each account
A T account represents
a ledger account
Which accounts have a normal credit balance
Revenues, Accounts Payable, Common Stock, and Unearned Revenues
Posting is when
you transfer journal entry to ledger
Normal debit balance
Expenses, Dividends, and Assets
Which statements are calculated over a period of time
income, cash flows, retained earnings
Recievable + Prepaid
an asset
