Details Title: Accounting 3 Final Exam Description: Chap 1, 2, 3, 4, and 7 Total Flash Cards: 43 Created: 12/15/2008 09:39:24		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Accounting Flashcards
Cards in this set: Term Predictive Value Definition Information is useful in predicting the future. Term Relevance Definition Pertinent to the decision at hand. Term Timeliness Definition Information is available prior to the decision. Term Distribution to owners Definition Decreases in equity resulting from transfers to owners. Term Feedback Value Definition Information confirms expectations. Term Reliability Definition Along with relevance, a primary decision-specific quality. Term Gain Definition Results if an asset is sold for more than its book value. Term Representational Faithfulness Definition Agreement between a measure and the phenomenon it purports to represent. Term Comprehensive Income Definition The change in equity from nonowner transactions. Term Materiality Definition Concerns the relative size of an item and its effect on decisions. Term Comparabilty Definition Important for making interfirm comparisons. Term Neutrality Definition Accounting information should not favor a particular group. Term Recognition Definition The process of admitting information into financial statements. Term Consistency Definition Applying the same accounting practices over time. Term Cost Effectiveness Definition Requires consideration of the costs and value of information. Term Verifiability Definition Implies consensus among different measurers. Term Matching Priniciple Definition Record expenses in the period the related revenue  is recognized. Term Periodicity Definition The life of an enterprise can be divided into artificial time periods. Term Historical Cost Principle Definition The original transaction value upon acquisition. Term Realization Principle Definition Criteria usually satisfied at point of sale. Term Going Concern Assumption Definition The entity will continue indefinitely. Term Monetary Unit Assumption Definition A common denominator is the dollar. Term Economic Entity Assumption Definition The enterprise is separate from its owners and other entities. Term Full-disclosure Principle Definition All information that could affect decisions should be reported. Term Conservatism Definition Not a qualitative characteristic, but a practical justification for some accounting choices. Term Source Documents Definition Used to identify and process external transactions. Term Transaction Analysis Definition Determine the dual effect on the accounting equation. Term Journal Definition Record of the dual effect of a transaction in debit/creidt form. Term Posting Definition Transferring balances from the journal to the ledger. Term Unadjusted Trial Balance Definition List of accounts and their balances after recording adjusting entries. Term Cash Equivalent Definition One-month U.S. Treasury bill. Term Adjusting Entries Definition Internal events recorded at the end of a reporting period. Term Adjusted Trial Balance Definition List of accounts and their balances after recording adjusting entries. Term Financial Statements Definition Primary means of disseminating information to the extermal decision makers. Term Closing Entries Definition To zero out the owners' equity temporary accounts. Term Post-closing Trial Balance Definition List of accounts and their balances after recording closing entries. Term Worksheet Definition A means of organizing information: not part of the formal accounting system. Term Balance Sheet Definition An organized array of assets,liabilities and equity. Term Liquidity Definition Relates to the amount of time before an asset is converted to cash or a libility is paid. Term Working Capital Definition Current assets minus current liabilities Term Subsequent Events Definition Occurs after the fiscal year-end but before the statements are issued. Term Unqualified Opinion Definition The statements are presented fairly in conformity with GAAP. Term Accrued Liabilities Definition Recorded when an expense is incurred but not yet paid.