accounting test 1

accounting test 1 - 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12....

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1. Asset- resource of a business- on balance sheet 2. liability- obligation of a business- on balance sheet 3. equity- difference between assets and liabilities- on balance sheet 4. contributed capital- equity resulting from contributions from owners- on balance sheet 5. retained earnings- equity resulting from profitable operations- on balance sheet 6. revenue- increase in assets resulting from selling a good or providing a service –on income statement 7. expense- decrease in assets resulting from selling a good or providing a service- on income statement 8. dividend- distribution to owners- on statement of returned earnings 9. revenue recognition- revenues are recorded when they are earned – effect- receipt of cash is not required to record a revenue 10. cost- assets are recorded and maintained at their historical costs- effect- except in a few cases, market values are not used for reporting asset values 11. matching- expenses are recorded in the time period when they are incurred to
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This note was uploaded on 04/21/2008 for the course ACCT 2110 taught by Professor Brandon during the Spring '08 term at Auburn University.

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accounting test 1 - 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12....

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