Chapter1-3 Test Review.docx - Chapter 1-3 Test Review Terms...

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Chapter 1-3 Test Review TermsCh 1Assets=Liabilities +Owners Equity– The Accounting Equation , Assets equal Liabilities plus Owners EquityGenerally Accepted Accounting Principles – Accounting principles and concepts develop from research, accepted accounting practices, and pronouncements of regulators.Who makes the RULES? – Financial Accounting Standards Board – Have the primary responsibility for developing accounting principles.Certified Public Accountant – Public Accountants who have met a state’s education, experience, and examination requirements.Revenue Recognition Principle - Therevenue recognition principleis a cornerstone of accrual accounting together with the matchingprinciple. They both determine the accounting period, in which revenuesand expenses arerecognized. ... Accruedrevenue:Revenueisrecognized before cash is received.Separate Entity Principle - Theseparate entity conceptis the basic accountingconceptthat we should always separatelyrecord the transactions of a business and its owners. Otherwise, there is a considerable risk that the transactions of the two will become intermingledCost Principle - Thecost principleis one of the basic underlying guidelines in accounting. It is also known as the historicalcost principle. Thecost principlerequires that assets be recorded at the cash

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Term
Spring
Professor
N/A
Tags
Generally Accepted Accounting Principles, Financial Accounting Standards Board, Owner s Equity

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