ACC 151 - ACC 151 Exam#1 Review Chapter 1 Accounting is an...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 151 Exam #1 Review Chapter 1: Accounting – is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization Record Keeping - recording of transactions and events External Users – not directly involved in running the organization Internal Users – involved in running the organization Ethics – Beliefs that distinguish right from wrong (behavior) G enerally A ccepted A ccounting P rinciples – rules and concepts that govern the financial accounting practice Objectivity Principle – means that accounting information is supported by independent, unbiased evidence. Not based on opinion of preparer but the financial statement Cost Principle – means that accounting information is based on actual cost Going-Concern Principle – means that accounting information reflects an assumption that the business will continue to operate instead of being closed or shut down Monetary Unit Principle – means transactions are expressed in money or units Revenue Recognition Principle –provides guidance on when company must recognize revenue. Business Entity Principle – means a business is accounted for separately from other business entities, including its owner Assets- are resources with future benefit that are owned or controlled by a company [cash, supplies, equipment, land, receivable…] Liabilities – What a company owes its non-owners (creditors) in future pay or service [payable: wages, accounts, notes, taxes payable] Equity – Also called owners equity or capital, refers to the claims of its owners. [Common stock, retained earnings, dividends (reduce retained earnings), revenues, expenses] Assets = Liabilities + Equity Common Stock – Dividends + Revenues - Expenses Chapter 2: Source Documents – Identify and describe transactions and events entering the accounting process, they are the sources of the account information Account – a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item, recorded in a ledger General Ledger/Ledger – a record containing all accounts used by a company Chart of Accounts
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern