Accounting Principles: Adjusting Entries, Financial Standards, and Conceptual Framework

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Finance - Personal Finance

jake12testoswi Created by 10 mon ago

Cards in this deck(30)

When do you make a journal entry to record that revenue is earned and expenses are incurred? This is typically done through an _____ journal entry.

Prepaid Insurance is a type of _____ that represents payments made in advance for insurance coverage.

Unearned Revenue is a type of _____ that represents money received before services are performed or goods are delivered.

Net income, calculated as revenue minus expenses, is included within _____ equity.

What does ASPE stand for in the context of accounting standards for private enterprises? It stands for Accounting Standards for _____ Enterprises.

What does IFRS stand for in the context of global accounting standards? It stands for International _____ Reporting Standards.

A contra account is an account that _____ against another account to reduce its balance.

Adjusting journal entries are typically done at the _____ of each accounting period to update account balances.

The conceptual framework is the foundation that the standards are written on, but it is not a _____ itself and doesn't override any standard.

The elements of financial statements include asset, liability, equity, expenses, and _____.

The reporting standard follows a principles-based approach, not rules-based, meaning _____ is involved when creating financial statements.

In accounting, _____ judgement is always needed to interpret and apply standards effectively.

Financial statements should tell the company's financial position and the company's _____.

Accounting differs in Canada and the US in that Canada uses a principles-based approach, while the US uses a _____ based approach.

Private enterprises can report under IFRS or ASPE, especially if planning to go public soon, considering the _____/benefit to do so.

IFRS is special because it has investors relying on financial statements, so they must be more _____ and strict.

ASPE is special because private entities use it as they don't have outside investors, just lenders, making it less _____.

Within the conceptual framework, demands include users and their needs, objectives, and qualitative _____.

The supply side of the conceptual framework includes constraints, assumptions, financial statements and elements, recognition, and _____.

Recognition in accounting refers to when you are able to _____ a transaction, meaning when it is recorded in journal entries and shown on the income statement.

Measurement in accounting means if you can't measure it, you can't put it in the financial statements, but you can put it in the _____.

The elements of financial statements include assets, liabilities, revenue, expenses, and _____.

Measurement uncertainty in accounting often arises from not knowing the _____ price of a transaction.

Historical cost refers to the cost to purchase an asset, which is how most transactions are accounted for and _____.

Fair market value refers to the value of financial instruments, such as stocks, traded on the _____.

Prudence in accounting means that standards are written _____.

Types of warranty include assurance and _____ service.

An assurance warranty assures that a product is working the way it is _____.

An assurance warranty is recognized when we _____ an expected expense at the time of selling the product.

A service warranty involves a sale that has different performance obligations and may include a separate _____.

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Accounting Principles: Adjusting Entries, Financial Standards, and Conceptual Framework

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