miderm definitions

Question 1

GAAP

Answer 1

Generally accepted accounting principles.

Question 2

FASB

Answer 2

Financial accounting Standard Boards

Question 3

SEC

Answer 3

Securities and exchange commission.

Question 4

IASB

Answer 4

International Accounting standard boards.

Question 5

IFRS

Answer 5

International Financial Report Standards.

Question 6

Assets

Answer 6

Resources a company owns or controls that provides future economic benefits.

Question 7

Liabilities

Answer 7

creditors claim on assets.

Question 8

Equity

Answer 8

owners claim on assets.

Question 9

EDGAR

Answer 9

Electronic data gathering analysis and retrieval system.

Question 10

GAAS

Answer 10

Generally accepted auditing standards.

Question 11

what are the 3. description of a contra account?

Answer 11

1. Attached to another account
2. opposite balance of the account it is attached to.
3. Reduces the account it is attached to.

Question 12

Accural accounting

Answer 12

Recognize revenue when earned not when the cash changes hands.

Question 13

revenue and expenses are temporary accounts to…..

Answer 13

Retained earnings.

Question 13

what are the 5 financial statements

Answer 13

1. Income statement
2. Stmt of owner’s equity
3. Balance sheet
4. cash flows
5. notes

Question 14

what are the heading format for the financial statements excluded balance sheet

Answer 14

Name of company
for year ended 20xx
Financial statement

Question 15

what is the heading format for the balance sheet?

Answer 15

Name of company
year
balance sheet.

Question 16

Are assets current AND non-current?

Answer 16

Yes

Question 17

what is the correct order the current assets are format in?

Answer 17

cash
Investments
AR
merchandise inventory
Pre-paid expenses
supplies

Question 18

what are non current assets?

Answer 18

PPE
Intangible assets

Question 19

unearned revenue

Answer 19

when customers pay in advance before the goods are shipped or services are rendered

Question 20

what are current liabilities

Answer 20

AP
Unearned revenue

Question 21

what are non- current liabilities?

Answer 21

Bonds payable
loans payable.

Question 22

what are the qualitative characteristics of accounting information?

Answer 22

Relevant
reliable
comparable
consistent

Question 23

monetary unit

Answer 23

the national currency of the reporting country.

Question 24

Economic entity

Answer 24

a business is an economic entity separate & distinct from its owners

Question 25

period of time

Answer 25

information is reported in a company's financial statements at least annually.

Question 26

going concern( continuity)

Answer 26

The company will continue to operate in the future.

Question 27

revenue recognition

Answer 27

when the entity satisfies a performance obligation, not necessarily when cash changes hands.

Question 28

matching

Answer 28

the total expenses involved in obtaining the revenue of the period must be computed and related ( matched against) the revenues recorded in the period.

Question 29

historical costs

Answer 29

the acquisition of goods and services & other resources are entered into the accounting records at their exchange.

Question 30

full disclosure

Answer 30

circumstances and events that make a difference to financial statement users be disclosed.

Question 31

Materiality

Answer 31

An item is material if it is likely to influence the decision of a reasonably prudent investor or creditor.

Question 32

conservatism

Answer 32

accounting measurements take place in a context of significant uncertainties therefore, when alternative accounting valuations are equally possible.

Question 33

what temporary account is used to close out temporary accounts

Answer 33

Income summary

Question 34

what account is used to close out income summary

Answer 34

capital

Question 35

what are the 4 control activities that are used in internal control

Answer 35

1. authorization 2. recording 3. custody safeguarding 4. comparison

Question 36

what are the 5 internal control components?

Answer 36

control activities risk assessment information & communication monitoring controlled environment.

Question 37

which reqiures journal entries: Books or bank?

Answer 37

books

Question 38

petty cash

Answer 38

a way to pay for little expenditures that come up all the time.