08 Oct Principles of Accounting 1

Principles of Accounting 1

Accounting

Business

 

Certified Public Accountants (CPA)

 

Ethics

 

Financial Accounting

 

General Purpose Financial Statements

 

Managerial or Management Accounting

 

Manufacturing Businesses

 

Retail Businesses

 

Profit

 

Public Company Accounting Oversight Board

 

 Sarbanes-Oxley Act (SOX)

 

 

 

Service Businesses

 

Public Accounting

 

Private Accounting

 

Question 2 Business Entity Assumption

 

Corporation

 

Financial Accounting Standards Board (FASB)

 

Generally Accepted Accounting Principles (GAAP_

 

International Accounting Standards Board (IASB)

 

 Limited Liability Company (LLC)

 

Partnership

 

Proprietorship

 

Securities and Exchange Commission (SEC)

 

Cost Principle

 

Question 3Monetary Unit Assumption

 

Time Period Assumption

 

Fiscal Year

 

Natural Business Year

 

Accounting Standards

 

Accounting Principles and Assumptions

 

Measurement Principle

 

determines the amount that will be recorded and reported

 

Arm’s Length Transaction

 

Going Concern Assumption

 

Revenue

 

Revenue Recognition Principle

 

determines when revenue is recorded in the accounting records.

 

Expenses

 

Expense Recognition Principle

 

Question 4Accounting Equation

 

 

 

Assets

 

Liabilities

 

Owner’s Equity

 

The owner’s right to the assets of the business.

 

Stockholder’s Equity

 

The owners’ equity in a corporation.

 

 Question 5Accounts Payable

 

Accounts Receivable

 

Business Transaction

 

Fees Earned

 

Interest Revenue

 

Prepaid Expenses

 

Rent Revenue

 

Sales

 

Common stock

 

Retained Earnings

 

Dividends

 

Question 6Balance Sheet

 

Financial Statements

 

Income Statement

 

Net Income/Net Profit/Earnings

 

 Net Loss

 

 Report Form

 

 Statement of Cash Flows

 

 Statement of Stockholders’ Equity

 

Retained Earnings Statement

 

when a company has few (if any) common stock transactions

 

 

 

 

 

 

 

ACC105 Principles of Accounting 1

 

Module 2 Quiz  

 

Credit

 

 Debit

 

Expenses

 

 Ledger

 

 Liabilities

 

 Stockholders’ Equity

 

Stockholders’ right to the assets of the business.

 

Revenues

 

 T Account

 

Common stock

 

 An account representing the ownership rights of investors in a corporation

 

Retained Earnings

 

Dividends

 

Question 2Double-Entry Accounting System

 

Journal

 

Journal Entry

 

The form of recording a transaction in a journal.

 

Journalizing

 

Normal Balance of an Account

 

Rules of debit and credit

 

 Two-Column Journal

 

Question 3Accounts Receivable

 

Four-Column Account

 

 Posting

 

Unearned Revenue

 

 Question 4Correcting Journal Entry

 

 Horizontal Analysis

 

Slide

 

Transposition

 

Trial Balance

 

 Unadjusted Trial Balance

 

 Quiz

 

 

 

ACC105 Principles of Accounting 1

 

Module 3 Quiz  

 

Question 1Accrual

 

Accrual Basis of Accounting

 

 Adjusting Entries

 

Adjusting Process

 

Cash Basis of Accounting

 

Deferral

 

Expense Recognition Principle

 

Matching Principle

 

A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses.

 

Prepaid Expense

 

Revenue Recognition Principle

 

Unearned Revenue

 

Question 2Accumulated Depreciation

 

Adjusted Trial Balance

 

Book Value of the Asset

 

Contra Accounts

 

Depreciate

 

Depreciation

 

 Depreciation Expense

 

Fixed Assets

 

 Vertical Analysis

 

 

 

ACC105 Principles of Accounting 1

 

Module 4 Quiz  

 

Question 1Accrual

 

Accrual Basis of Accounting

 

Adjusting Entries

 

Adjusting Process

 

 Cash Basis of Accounting

 

Deferral

 

 Expense Recognition Principle

 

Matching Principle

 

A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses.

 

Prepaid Expense

 

Revenue Recognition Principle

 

Unearned Revenue

 

Question 2Accumulated Depreciation

 

Adjusted Trial Balance

 

Book Value of the Asset

 

Contra Accounts

 

Depreciate

 

Depreciation

 

 Depreciation Expense

 

 Fixed Assets

 

 Vertical Analysis

 

 

 

ACC105 Principles of Accounting 1

 

Module 5 Quiz  

 

Question 1Asset turnover

 

Cost of merchandise sold

 

Gross profit

 

Merchandise inventory

 

Operating cycle

 

Sales

 

Inventory Shrinkage/Shortage

 

Question 2Cash refund

 

Credit memorandum

 

Credit period

 

Credit terms

 

Customer allowance

 

O. Returns to the seller by the customer or reductions from the initial selling price due to defective or damaged merchandise or goods that did not meet the customer’s expectations.

 

Customer disounts

 

Customer refunds payable

 

Debit memorandum

 

Estimated returns inventory

 

FOB (free on board) destination

 

FOB (free on board) shipping point

 

Invoice           

 

Periodic inventory system

 

Perpetual inventory system

 

Physical inventory

 

Purchases discounts

 

Purchases returns and allowances

 

Sales discounts

 

Trade discounts

 

Wholesalers

 

Question 3Net method

 

Subsidiary ledger

 

General ledger

 

Controlling account

 

Accounts receivable subsidiary ledger

 

Accounts payable subsidiary ledger

 

Inventory subsidiary ledger

 

Special journals

 

Question 4Administrative expenses

 

Income from operations

 

Multi-step income statement

 

 Other expense

 

Other revenue

 

Selling expense

 

Single step income statement

 

 

 

ACC105 Principles of Accounting 1

 

Module 6 Quiz  

 

Question 1Purchase order

 

Physical inventory

 

Receiving report

 

Subsidiary inventory ledger

 

Question 2First in, first out (FIFO)

 

 Last in, first out (LIFO)

 

 A. A method of inventory costing based on the assumption that the most recent merchandise inventory costs should be charged against revenue.

 

Weighted average inventory

 

 Specific identification inventory cost flow method

 

 Question 3

 

Lower-of-cost-or-market (LCM) method

 

Net realizable value

 

Consigned inventory

 

Consignor

 

Consignee