Financial Accounting First Semester Quiz

<p>Supply Chain Management</p> Signup and view all the answers

<p>Introduction to accounting principles and concepts</p> Signup and view all the answers

<p>Understanding financial statement preparation</p> Signup and view all the answers

<p>To understand the principles and concepts of accounting</p> Signup and view all the answers

<p>To gain an introduction to accounting principles and concepts</p> Signup and view all the answers

<p>Accrual basis = Recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged Going concern = Assumes that the business will continue to operate in the foreseeable future Conservatism = Principle of recognizing potential losses but not potential gains Materiality = Relates to the significance or importance of an item or event</p> Signup and view all the answers

<p>Balance sheet = Assets, liabilities, and equity at a specific point in time Income statement = Revenues and expenses over a period of time Cash flow statement = Cash generated and used during a specific period Statement of changes in equity = Details changes in equity over a specific period</p> Signup and view all the answers

<p>Matching principle = Expenses should be matched with the related revenues Consistency principle = Use of the same accounting methods and principles from period to period Materiality principle = Only significant items need to be recorded in the financial statements Full disclosure principle = All relevant information should be disclosed in the financial statements</p> Signup and view all the answers

<p>Asset accounts = Resources owned by the business Liability accounts = Obligations or debts owed by the business Equity accounts = Owner's claim on the assets of the business Revenue accounts = Increases in assets from selling goods or services</p> Signup and view all the answers