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Details

GB 201 Ch3
Vocab
10
Accounting
Undergraduate 2
12/11/2008

Additional Accounting Flashcards

 


 

Cards

Term
Operating (Cash-to-Cash) Cycle
Definition
The time it takes for a company to pay cash to suppliers, sell goods and services to customers, and collect cash from customers.
Term
Time Period Assumption
Definition
Indicates that the long life of a company can be reported in shorter time periods.
Term
Revenues
Definition
Increases in assets or settlements of liabilities from ongoing operations.
Term
Expenses
Definition
Decreases in assets or increases in liabilities from ongoing operations incurred to generate revenues during the period.
Term
Gains
Definition
Increases in assets or decreases in liabilities from peripheral transactions.
Term
Losses
Definition
Decreases in assets or increases in liabilities from peripheral transactions.
Term
Cash Basis Accounting
Definition
Records revenues when cash is received and expenses when cash is paid.
Term
Accrual Basis Accounting
Definition
Records revenues when earned and expenses when incurred, regardless of the timing of cash receipts or payments.
Term
Revenue Principle
Definition
States that revenues are recognized when goods or services are delivered, there is persuasive evidence of an arrangement for customer payment, the price is fixed or determinable, and collection is reasonably assured.
Term
Matching Principle
Definition
Requires that expenses be recorded when incurred in earning revenue.
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