Term
| User of Financial Statements |
|
Definition
| investors, creditors, and other interested in the business |
|
|
Term
| Objective of Financial Statements |
|
Definition
| To Design and prepare the financial statements to assist the users in making decisions |
|
|
Term
|
Definition
| Reported the amount of depreciation expense because it likely will affect important decisions of statement users |
|
|
Term
|
Definition
| Engaged an outside independent CPA to audit the financial statements |
|
|
Term
|
Definition
| Established a policy not to include in the financial statements the personal financial affairs of the owners of the business |
|
|
Term
|
Definition
| Accounting and reporting assume a "going concern" |
|
|
Term
|
Definition
| Counted (inventoried) the unsold items at the end of the period and valued them in dollars |
|
|
Term
|
Definition
| Dated the income statement "For the year ended December 31, 2011" |
|
|
Term
|
Definition
| Recorded a sale of merchandise $1,000 on credit |
|
|
Term
|
Definition
| Used services from outsiders; paid cash for some and put the remainder on credit |
|
|
Term
|
Definition
| Sold an asset at a gain that was a peripheral or incidental transaction |
|
|
Term
|
Definition
| Sold an asset at a loss that was a peripheral or incidental transaction |
|
|
Term
|
Definition
| Acquired a vehicle of use in operating the business |
|
|
Term
|
Definition
| Sold and issued bonds payable of $1 million |
|
|
Term
|
Definition
| Assets of $500,000 - Liabilities of $300,000 |
|
|
Term
|
Definition
| Paid a contractor for an additional |
|
|
Term
|
Definition
| Established an accounting policy that sales revenue shall recognized only when ownership to the goods sold passes to the customer |
|
|
Term
|
Definition
| Sold merchandise and service for cash and on credit during the year; then determined the cost of those goods sold and the cost of rendering those services |
|
|
Term
|
Definition
| Disclosed in the financial statements all relevant financial information about the business; necessitated the use of notes to the financial statements. |
|
|
Term
|
Definition
| Acquired an asset (a pencil sharpener that will have a useful life of five years) and recoreded it as an expense when purchased for $1.99 |
|
|
Term
|
Definition
| The user value of a special financial report exceeds the cost of preparing it. |
|
|
Term
|
Definition
| Valued an asset, such as inventory, at less than its purchase cost because the replacement cost is less. |
|
|
Term
| Special industry practices |
|
Definition
| Used special accounting approaches because of the uniqueness of the industry |
|
|
Term
| Special industry practices |
|
Definition
| Used special accounting approaches because of the uniqueness of the industry |
|
|
