Accounting Principles (Flashcards)

This accounting guideline requires the accruing of expenses.

This accounting guideline requires that extensive notes be included with a company’s financial statements.

This accounting guideline allows large corporations to issue financial statements with amounts rounded to the nearest thousand and to immediately expense equipment having a low cost.

This accounting principle or guideline requires that transactions be recorded at their cash value. It also prevents increasing the record amount for property that has increased in value.

This method of accounting reports revenues when they are earned and reports expenses when they occur.

When an accountant has two alternatives for financial accounting, the amount reported should be the one that results in a lower profit and a lower asset amount (or greater liability amount).

This accounting guideline assumes that the company will be able to continue operating long enough to carry out its objectives and commitments.

This non-government organization develops the financial accounting standards for U.S. corporations.

This accounting guideline allows a business to report its ongoing operations in short time intervals such as years, quarters, months, etc.

This accounting guideline allows a government regulated business to prepare its financial statements according to the rules of the government agency. Hence a public utility’s balance sheet will report its plant assets ahead of its current assets.

This accounting guideline assumes that a sole proprietor’s business transactions can be accounted for separately from the proprietor’s personal transactions.

This acronym indicates the accounting rules that must be followed when a U.S. corporation issues its financial statements.

These journal entries are recorded at the end of the accounting period in order to accrue and defer some amounts.

This U.S. government agency has regulatory authority over the reporting by corporations whose stock is publicly traded.

This type of financial statement has two or three columns of amounts so the reader can relate the most recent amounts to the amounts in an earlier accounting period.

This characteristic requires a company to use the same accounting methods that were used in previous accounting periods. If a change is necessary, it must be disclosed.