Exam 1 Accounting 284

The private body that actually writes the rules

Shows how the company's earnings have changed for the period

Which of these is an income statement limitation?

Reports inflows and outflows of cash during the accounting period

What is the matching principle?

Earned by selling goods and services to customers

Rules of accounting created by IASB for international use

A business or firm owned and run by two or more partners

The amounts owed by a business

IASB is an independent, private-sector body that develops and approves IFRSs

Which of these is not an advantage of a corporation?

The total amounts invested and reinvested in the business by its owners

The body that approves the rules

The measurement rules used to develop the information in the financial statements in the US

Reports the financial position of an accounting entity at a single point in time

What is the purpose of FASB?

A person who owns a business and is personally responsible for its debts

The resources owned by a business

Reports how NI and the distribution of dividends affect the financial position of the company

Do you want a higher or lower current ratio?

A legal entity that is separate and distinct from its owners

Do you want a higher or lower net profit margin?

The federal agency with the power to determine the rules

Reports revenues less expenses for the accounting period

What is the purpose of the operating cycle?

Accrual basis accounting differs from cash basis because...

Cost of Goods Sold is what type of account?

What is the difference between a current and long term asset/liability?

Provides information for internal decision makers such as management